Messaging commerce to see uptick in 2015

Source: fastacash.
Tallent.

E-commerce is going to be an exciting field in 2015, with multiple launches and more traction for messaging commerce, says fastacash, which has developed a global platform that allows users to transfer value such as money or airtime along with digital content through social networks and messaging platforms.

Messaging commerce, or e-payments via messaging platforms, is the sweet spot where messaging platforms and financial institutions meet, said Vince Tallent, CEO, fastacash. "Messaging platforms are looking for ways to monetise their users. At the same time, banks and financial institutions are looking for ways to capitalise on the existing social and messaging behaviour to address new markets and younger audiences. For this, payments across messaging platforms will be critically important, whether it be person-to-person payments or person to merchant payments," he said.

Tallent noted that a number of regionally focused social and messaging platforms coming out of Asia are expanding quickly. "Being able to provide a payments solution that is interoperable for social and messaging platforms will provide greater use cases and address the behaviour patterns of consumers," he said.

The market is still new, and hindrances to adoption remain. "A challenge that we see is the monetary regulations that govern each market. While this is not unique to Asia, it is something that impacts cross border transactions. Social networks don’t face cross border limitations, but the different regulations and norms create borders thereby creating complexity when it comes to social e-commerce and payments," Tallent noted.

"Furthermore, there is a need for a universal standard and establishing an eco-system where people should be able to replace their card- and cash-based 
transactions with their mobile wallets, thereby using one solution for all types of payments, be it peer-to-peer, peer-to-merchant, online or offline. Consumers also want the flexibility of cashing out their money and having considerable cash out options is important."

Trust is another elephant in the room at the moment, Tallent added. "One of the biggest challenges that remains is the trust of the 'device'. With mobile payments, consumers worry whether their payment has been made and whether their information is safe, especially in case their phone gets lost. The industry has to continue to educate the consumer with respect to security," he said.