Last week payments service Stripe confirmed they had partnered with Facebook to power the social media platform’s ‘buy now’ feature.
The buy now button concept ads a button to posts, either sponsored or organic, in a user’s feed which lets them purchase the product being mentioned. This could be a powerful call to action for those advertising on Facebook and a potentially substantial revenue stream for the social media service.
Late last month Stripe co-founder John Collison spoke to Decoding the New Economy about the evolution of online payments and Facebook’s role in the industry.
“We’ve seen Facebook’s announcement a little while back that they’re letting you pay with your Facebook credentials. You can have a little ‘buy with Facebook’ button and if your card details are on file with Facebook then you don’t have to fill out all your details.”
Stripe’s strategic advantage
At the time Collison wasn’t letting on just how integral his company would be to Facebook’s payment services and coupled with company’s privileged position with Apple Pay, Stripe seems to be in a leading position with some of the biggest and well positioned players in an industry that’s being turned upside down.
Those changes are good news for business as I wrote for Technology Spectator last week with the increased competition in the sector is making it easier for new companies to enter their markets.
Making it easier for new entrants is something that drives Stripe’s Collison; “I think one of the things that’s held back online commerce for so long is there is such a high barrier to it and so if you go to a coffee shop and you pay for your coffee — you swipe your card and that’s that.”
Letting businesses sell more
“It seems to me that in five to ten years time we will not be in the same world where people like Facebook and Google are improving the identity story,” continued Collison. “This is exciting because it means merchants can sell more.”
The integration of Buy Now into Facebook’s services also indicates a different direction for social media services beyond being the passive marketing platforms many see them as being today.
It may well be that social media platforms are more the storefront than the billboard.
Been there for couple of years now. Wouldn’t look at Australia when it comes to ICT and transportation systems as the country is way behind including for social media when compared to some of the Asian places like Singapore, HK and India. Social media has been used for store purposes and so on under FB for a while and US, Canada, HK, Singapore have used them well. Cross channel integrated marketing also happens with social media, apps like MailChimp, website platforms like WordPress and so on but sadly Australia’s just behind.