In the US alone, social commerce retail earnings are predicted to reach nearly $80 billion by 2025. With approximately 4.89 billion people currently using social media, it is no surprise that social commerce has become an increasingly important means of getting in front of customers. Essential to all of this is the way in which purchases are completed. With that being said, here are 5 payment trends accelerating social commerce in 2024.
1. Increased adoption of digital wallets
As more consumers become comfortable with using digital wallets like Apple Pay and Google Pay, social commerce platforms are integrating these payment options to provide a seamless checkout experience.
In the past twelve months, Instagram has enhanced its social commerce capabilities by integrating Facebook Pay directly into its app. This allows users to complete purchases seamlessly within Instagram Shopping by using stored payment information, significantly simplifying the checkout process and improving conversion rates for businesses on the platform.
2. Buy now, pay later options
The popularity of buy now, pay later services like Klarna and Afterpay is on the rise, allowing shoppers to make purchases on social media platforms and pay for them in installments. This move aims to reduce cart abandonment rates by offering a more appealing payment method and encouraging higher-value purchases, thereby boosting overall sales on the platform. This trend, which is particularly attractive to younger consumers who prefer flexible payment options, is expected to accelerate social commerce growth in 2024.
3. Cryptocurrency payments
With the growing acceptance of cryptocurrencies like Bitcoin and Ethereum, social commerce platforms are starting to offer payment options in digital currencies. This trend is attracting tech-savvy consumers and driving sales on social media.
For instance, in March, X announced that users could use Bitcoin to purchase items from select merchants directly through the platform, leveraging the Lightning Network for faster and more cost-effective transactions. This integration aims to tap into the growing popularity of cryptocurrencies and provide a modern payment solution for tech-savvy consumers.
4. Personalised payment plans
To cater to individual preferences and budgets, social commerce platforms are offering personalized payment plans based on shoppers’ buying behaviour and financial profiles. This trend is enhancing the shopping experience and increasing customer loyalty.
In February, Facebook rolled out a feature within its Facebook Marketplace that analyses a user’s purchase history and spending patterns to offer customised instalment plans tailored to their financial habits. This initiative is designed to provide more flexible payment options and encourage repeat purchases by aligning payment schedules with users’ typical spending behaviors.
5. Seamless integration of payment methods
To provide a frictionless shopping experience, social commerce platforms are integrating multiple payment methods, including credit cards, digital wallets, and alternative payment options. This trend is streamlining the checkout process and boosting conversion rates in 2024. In April, TikTok announced the integration of several payment options to enhance its in-app purchasing experience. While traditional credit and debit cards remain the most commonly used payment methods, users can also directly debit their bank accounts without needing a card. This feature is particularly beneficial in regions where bank transfers are a popular payment method.
