Category Archives: Businesses

Using Social Media to get the Best Online Payment System

With the advancement in technology and innovation, the process of payments has evolved significantly. Different fields have adopted the new payment solutions with enthusiasm. The banking sector is not an exception. Various banks and social media companies have embraced this new payments trends and have collaborated to offer new services. This is because of the growing use of the smartphones and internet among many people around the world. An increasing number of people are using the social media to make payments as well as performing other banking and transaction operations. The following are examples of banks which have integrated within social media platforms such as Facebook and Twitter in order to provide the best online payment system and respond to the needs of the people.

ICICI Bank – India
ICICI bank launched ICICIBankPay which would allow clients with a Twitter account to transfer money in the country. It can also allow individuals to recharge prepaid mobile, view the last three transactions, and check the account balance. Moreover, the rolling out of the mobile payment service via Twitter was also aimed to tapping the market of potential clients who did not have an account with the bank but still wanted to use its services.

Banque Populaire d’Ḗpargne (BPCE) – France
BPCE signalled a move to revenue streams by collaborating with Twitter in announcing that it would allow its clients to transfer money through tweets. All one needs to do is to link the Twitter username to the S-money account and install the app. Both the sender and the recipient of the money must have the S-money account and app linked.

Kotak Mahindra – India
Kotak launched a social savings bank account known as Jifi Saver. The management of the account is done through Twitter and Facebook. It caters for the tech savvy clients more so eCommerce partners. It also caters for the needs of online shoppers. The service is available in 27 cities across India.

Baclays Bank – UK
On 10th March, 2015, Baclays launched a Twitter service becoming the first bank in the UK to allow payments through Twitter. It aimed at exploiting social and digital opportunities in order to offer an optimal customer experience. The payment is swift and does not require that the user provides the bank details or the phone number. The service was successfully launched despite the security concerns associated with the use of the mobile phones and the social media.

Rakuten Bank – Japan
Rakuten has a well established reputation in global eCommerce business. It was therefore not surprising when the company utilized the use of Facebook in its service to clients. Customers are supposed to log in to the bank iOS and Android apps, connect their Rakuten and Facebook accounts, and choose from their Facebook friends who they want to pay. If the recipient bank account is not linked to a Facebook account there is a small charge of 165 yen, if it is, it is a free service.

RBC Royal Bank of Canada – Canada
RBC expanded its mobile bank solutions by enabling its clients to make electronic transfers through Facebook. This is in line with the bank’s mission to become “Canada’s most innovative bank.” In this regard, one can send money to his or her Facebook friends through Android, iPhone, or iPad.

ASB Bank – New Zealand
In July, 2012, ASB Bank sought to exploit the social media phenomenon by announcing that it would use the Facebook platform to send notifications to customers. Similarly, it allowed customers to make payments to other banks through Facebook. The bank emphasized that one does not have to provide a bank account. From the time the service was launched, 10 % of the bank’s mobile payments have been effected through the platform.

FNB – South Africa
FNB South Africa has drastically changed the South African banking landscape with its advertising strategies and progressive marketing. It is against this backdrop that it adopted Facebook as one of the banking tools. It uses Facebook to do the following business operations: crowd-sourcing, sponsorship, and communication with clients and fans. Its smartphone app can make payments and one can link it easily to a bank account.

Commonwealth Bank – Australia
The commonwealth, Australia, connects with the clients via the Facebook and Twitter. It released a social media app, CommBank Katching for Facebook , that will give clients payment options via Facebook. The app has put into consideration the security and privacy issues that surround the use of Facebook. For example, the bank was concerned about the online scams and cyber crime and promised to lay concrete measures that would protect its clients.

There is a paradigm shift in payments methods. Banks are realizing the immense benefits that come with the use of social media in their business operations. In this light, banking institutions are giving payments via the social media great attention. The greatest advantage with this is that the use of the social media is growing. There is all the likelihood that it will continue to grow. Despite providing little value for international remittance, social media will play a major role in online payments and transactions.

Using the Internet to Lower Fees to Transfer Money Abroad

With the advent and growth of the internet, we have seen an explosion in online businesses and services. Some that have change our way of living. Some that even have changed us so much that they have rendered traditional businesses and even entire industries obsolete. Take movie rentals for example; with the digitization of film and peer to peer sharing, the film industry has had to evolves or risk failure. Now people don’y use DVDs as their primary viewing medium which has opened the doors to services like Netflix and Youtube.

Our financial system is currently going through what the film industry went through in the early 2000s. Money is changing and fast. Not only are financial markets increasing in volatility but but the transfer of cash is occurring more frequently and beyond more borders. Traditional, international money transfer were cumbersome due to the lack of efficient trade and trust networks, making it expensive and less attractive to less affluent people.

Things are slowly starting to change, but not by coincidence. Technology is evolving and international networks are growing independently of incumbent financial infrastructure. Bank are no longer the only service in town for people to send money abroad. An entire generation of internet companies based on both traditional financial model and progressive peer to peer technologies are taking foothold in the money transfer industry and it is driving prices down worldwide.

In the past one would use a bank to place a wire to send money abroad. Depending on the country, settlement of wire transactions could take up to 15 days and fees could and fees could escalate upwards of $100. Another would use a bricks and mortar money transfer company such as Western Union or Money Gram and would physically send money or remit through a branch. This for a long time was the most efficient method to send money abroad as it was cheaper and faster. Being, what were bricks and mortar businesses prior to internet, these companies were based on physical networks of branches which are still relevant today, but a new type of financial institution has emerged; The digital financial institution. These companies don’t have physical branches and thus have lower costs and tighter margins. You save money.

An Example of such companies is Payoneer.com

This is a company that has designed its entire business model on being fast, efficient and cheap. Because they are primarily a digital facing institution they they’re able to provide some of the most competitive transfer rates both on and off the internet. Traditional bank are essentially leaving the business of foreign remittance because they know they can’t compete. Traditional money transfer businesses are still relevant but less for remittance because these new digital companies are more efficient for small and more regular transactions.

Payonner.com is interesting because it is designed for the online experience. You can choose to have the recipient of your money transfer receive a pre-paid Mastercard payable in local currency as to directly give spendable credits. This eases the experience because even though it’s not always relevant, you are more likely to be near a banking machine than actual bank. They also have a seamless process for identifying you. All you have to do is enter the numbers on your local identification. These types of processes are built specifically to be international and work within as many countries as possible. The entire company and site wasn’t build for one country but all of them. Why should an international money transfer company be specialist in any country when their business is sending money to any country. They need to equally know them all.

Trust is an obvious factor when sending money anywhere so I recommend building a relationship with a company to do your transactions. Choose a few different companies and start with smaller transaction to build that relationship but know that newer type of businesses are changing the experience of sending money abroad. In your research, I say give them a chance.