Social commerce is a relatively new phenomenon that refers to the use of social media platforms to facilitate commercial transactions. One of the most popular examples of social commerce is the practice of using platforms like Facebook and Instagram to sell products and services. In many cases, social media users will come across posts or ads from businesses that they are interested in, and they can then follow a link to the company’s website or online store. Social commerce can also take place in the form of online reviews and recommendations.
Recently, Visa announced the launch of the Visa Ready Creator commerce program.
The company reports, “The global initiative will help creator-centric platforms, such as social commerce and video gaming companies embed financial tools—like faster and more flexible payouts through Visa Direct and tipping and donations.”
The program comes at a time when we’re seeing explosive growth in social commerce—estimated to be a $1.2 trillion industry by 2025. Undoubtedly, accelerated by the pandemic shift to e-commerce and social media platforms, the market has seen much favor from consumers. As we document in our report, nearly half (48%) of consumers purchased something on a social network in 2021. We know that consumers are driven by convenience and embedding financial capabilities directly into their favorite apps seems like a natural solution.
The company plans to work with Linktree, Marqeta, Rutter, and SamCart to enable their creator commerce solution.
Overview by Ben Danner, Research Analyst at Mercator Advisory Group.
