Mumbai: From just networking platforms, social media channels are fast emerging as digital market places where merchants and consumers buy and sell goods and services. According to PayPal, a global leader in digital payments, social commerce (S-commerce) is driving the adoption of digital payments as users demand more seamless and efficient payment experiences.
Among all the markets surveyed, India emerged at the top, in terms of usage of YouTube (64 per cent), Twitter (61 per cent), Google+ (50 per cent) and Skype (53 per cent) for the sale of goods and services.
The report highlights that in addition to low overheads and an existing pool of customers, 96 per cent of current social sellers feel that the concept has helped them reach bigger markets and has substantially improved their financial condition.
With digital payments being increasingly integrated into social networking sites, allowing buyers and sellers to transact seamlessly, we could see a further lowering of barriers against the adoption of new payment methods, PayPal said.
According to the survey, merchants showed significant confidence in social commerce with over 79 per cent selling through various social platforms. Facebook, WhatsApp and Facebook Messenger use is the highest among merchants in India than anywhere across Asia (excluding China).
“With digitisation, India is rapidly transitioning towards a digital, mobile-first economy. The very nature of social commerce inherently encourages greater digital payment adoption. Merchants are seeing social media as viable business platforms and are open to exploring social networking sites to grow business and tap consumers,” said Narsi Subramanian, director – growth, PayPal India.
About 52 per cent of the total consumer demand on social commerce comprises of cosmetics and beauty products followed by Groceries, food, drinks and alcohol (44 per cent), health products (43 per cent), fashion and apparels (40 per cent) and Travel and Transportation (37 per cent).
The survey indicates that social commerce is becoming a mainstream retail channel. The main reasons for this shift include the convenience of online purchase and the ease of payments.
