Tag: social networking

Facebook takes a step toward mobile commerce

Social network begins showing interest in mobile commerce

Facebook may be stepping into the mobile commerce arena as it begins testing its own mobile payments system. The social network has been looking for ways to improve its standing in the stock market and provide more value to the services it provides to consumers. Recently, this endeavor has manifested itself through the social network’s stronger focus on mobile marketing and providing analytic services to advertisers. Now, however, Facebook may be switching gears to embrace a trend that has been growing in popularity among consumers recently: Mobile commerce.

New service aims to streamline mobile payments

The social network is currently testing a service that will function as a companion to PayPal’s e-commerce services. The current stage of the test involves Facebook’s payments service to store and fill-in a consumer’s financial information in order to streamline the process of making a purchase using a mobile device. The service is meant to use this information to make the purchase of Facebook Gifts more convenient. The service is also meant to streamline in-game purchases for the various games that are supported on the social network.

Mobile Commerce - Facebook mobile paymentsFacebook won’t compete with PayPal or others

While Facebook is showing some interest in mobile commerce, the social network does not yet have any intention of competing with companies like PayPal in this sector. Currently, Facebook is primarily interested in making mobile payments easier for consumers. Considering that a fair amount of the social network’s users access the platform from their smartphones and tablets, the company is keen to ensure that these users are able to use the social network to their benefit.

New service could be a benefit to Facebook

This new initiative could be a major benefit for Facebook. It will allow the social network to determine whether ad-clicks turn into sales, which could provide the company with a stronger standing in the marketing sector. If this is the case, it could also meant significant return-on-investment for the advertisers that have been using the social network to reach out to and connect with its users.

Mobile commerce continues to show signs of evolution

Mobile Commerce EvolutionMobile commerce is becoming more social

Commerce continues to evolve as more consumers become tethered to their mobile devices and place more importance on social media. This evolution first began in the 80’s with the advent of the Internet and e-commerce. The proliferation of mobile technology brought about mobile commerce, which has only emerged within the past few years and is still considered to be in a state of infancy. Now, however, commerce is showing signs of a new evolutionary step, one called “participatory commerce” or “Pinterest commerce.”

Participatory commerce continues to gain some traction

Participatory commerce, as a term, was first coined by Mark Pincus, CEO of Zynga, in 2005. The term became somewhat popular in 2010 to describe the business model of FashionStake, a retail startup that was acquired by Fab.com in 2012. The term itself refers to a sales model that allows consumers to participate in the design, selection, and funding of certain products they are interested in purchasing. In some ways, this model is similar to popular crowdfunding platforms like Kickstarter, where individuals funding a project have some control over how that project will take form.

Retailers find value in social networking

Participatory commerce began being called Pinterest commerce in 2011 during the social network’s unexpected rise to fame. The retail industry was quick to see the possible benefits that Pinterest represented and moved to leverage the social network to their advantage. While Pinterest does not allow for online sales, it has proved to be a valuable platform through which retailers can expose consumers to new products and encourage online shopping.

New forms of commerce becoming increasingly social

The term is not widely used and is often considered to be an unnecessary subcategory of mobile commerce itself. It does, however, draw attention to the growing role of social media in the mobile commerce sector. Sites like Pinterest already hold a great deal of influence over consumers and retailers are becoming more adept at using these platforms to connect with mobile consumers in various demographics.