MasterCard Inc (NYSE:MA) could be getting ready to team up with social media giants Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB). The purpose of the move would be to start engaging with the social commerce trend, a development that merges social media with ecommerce.
Is MasterCard Inc Making a Play With Twitter, Facebook?
Could we see MasterCard have a bigger presence on social media? If the payment services provider gets its way then yes.
Mastercard’s president of international markets, Ann Cairn, told CNBC at the Money 2020 fintech conference Monday that the credit card firm would be interested in partnering with Facebook and Twitter. This comes as both social networks are building their payment services and social commerce platforms.
Speaking in Copenhagen, the Mastercard official noted that it’s always talking with Silicon Valley firms. As it does with other tech firms, Mastercard would try to come up with ways to work together and what they can build by working with one another.
“I think the way we would work with them is just the way we work with the other tech giants, we would figure out what we can do together, where our network could play into their space and connect up,” Cairn said. “Obvious spaces are if they want to offer payments to their clients and if you think about somebody like Facebook, it would probably be something like a P2P (peer-to-peer) service.”
Cairn did say, though, that collaborating with Twitter would vary from how it would work with Facebook because they both offer different products. The former maintains a “Buy Now” button, while Facebook has been perfecting its peer-to-peer (P2P) money transfer service through Messenger.
Over the last couple of years, Mastercard has been striking deals with numerous tech giants. For instance, Mastercard users can utilize their card with Apple Pay and Google’s Android Pay. This is something that some experts are suggesting could happen with Facebook. Also, Mastercard landed a deal with Samsung.
The news helped Twitter shares pop during Monday’s trading session. At mid-day, the stock climbed nearly 10 percent to around $17.30 a share. Facebook, meanwhile, fell three percent.
MasterCard Inc – How It’ll Impact Social Commerce
One of the biggest buzzwords of 2015 in the digital marketing world was social commerce. As noted, social commerce integrates social media with ecommerce, which is important because social media is quickly becoming an integral aspect of our day-to-day lives. Many of the big players in social media have embraced social commerce, particularly Pinterest and Instagram.
Despite the growing popularity of social commerce, it only represents five percent of the ecommerce market. However, it should be noted that social commerce is a $20 billion industry. The big brands and small ecommerce websites welcome social commerce because it employs many of the facets of digital marketing and advanced technology. Referrals alone have skyrocketed 200 percent between 2014 and 2015, and it isn’t slowing down one bit.
Can Mastercard have any sort of effect on social commerce? Well, it will only help.
Instagram reviews, Pinterest’s Gifts Feeds, Twitter buy buttons, Facebook buying and selling features are extremely helpful for both vendors and marketers. Just take a look at some of these findings in the last year or so when looking at social commerce:
- Social shoppers spend eight percent more than traditional digital consumers.
- One-third of U.S. consumers have used a promotion on a vendor’s social network.
- Facebook accounts for two-thirds of U.S. social media buy button referrals.
These are huge numbers. The fact is is that people don’t go on Facebook or Twitter anymore to converse. Consumers converge onto social media to read news, provide user reviews and, as of late, buy stuff. It only makes sense for Mastercard to test this market out.
And with the Internet of Things (IoT) about to play an important role in both the online and offline shopping experience, social commerce is about to become Social 3.0.