PayPal Was Used For 1 In 5 Social Media Purchases Made In-App

(CTN  News) – Social media platforms such as Facebook, Instagram, and TikTok have completely transformed the way consumers engage with brands and make purchases. Each platform caters to different consumer interests and needs, resulting in a significant impact on the shopping experience.

Although not all users make direct purchases through social media, a staggering 40% of consumers utilize their social media feeds to discover and explore various goods and services. Interestingly, these platforms attract twice as many browsers as actual buyers.

These insights were revealed in a comprehensive report titled “Tracking the Digital Payments Takeover: Monetizing Social Media,” conducted by PYMNTS Intelligence and Amazon Web Services (AWS).

The study involved surveying nearly 3,000 consumers to delve into the driving factors behind their social purchases, the payment methods employed, and the strategies that merchants can adopt to enhance conversion rates.

According to the study, one of the primary appeals of social media shopping lies in its convenience and ease of use. Users can seamlessly transition from browsing to making a purchase as soon as they stumble upon appealing products and discover new merchants.

Additionally, the survey highlighted that 32% of consumers choose to transact on social media platforms due to the familiarity and simplicity it offer, while 28% value the swift purchase process when they are captivated by a particular product.

In terms of completing transactions on media, consumers have a range of payment methods available to them. The primary choice for nearly 30% of shoppers is credit cards, followed by debit cards at 24%. PayPal, cryptocurrency, Apple Pay, and Amazon Pay are also used, but to a lesser extent.

Despite the potential of social media as a retail platform, many consumers still have concerns about the authenticity of merchants.

According to the survey, 37% of consumers who do not transact are skeptical about sharing their data safely, and 31% doubt the legitimacy of sellers on media platforms.

Other common reasons discourage consumers from making transactions on social media. For example, 27% of respondents cited concerns about product quality, while 17% fear not being able to get a refund in case of purchase issues.

Retailers must establish trust and tackle these concerns to enhance sales on social media. Moreover, meeting the demand for on-platform impulse buying that media users desire will necessitate merchants to offer payment options that cater to their spending habits, as highlighted in the study.

As social media continues to progress, retailers must remain informed about consumer preferences and adjust their approaches accordingly. By comprehending the payment methods consumers utilize and addressing their apprehensions, retailers can utilize media to boost sales and provide a seamless shopping experience for their clientele.

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