Social Money: The Next Big Thing?
Social Money: The Next Big Thing?
Hot on the heels of the explosion of social networking is the emergence of a new market dubbed “social money†â€" the informal currency between friends. PayPal, MasterCard, Cingular, and a host of startups are offering a free service that keeps track of money owed between friends, critically they play an impartial role, removing the embarrassing nag-factor and ensure everyone knows where they stand and no-one forgets to pay. Gas bills, lunch, holidays, group gifts, literally anything can be tracked and who has and hasn't paid is crystal clear. Logging expenses is simple - via a text message to the site, followed up by a more detailed online entry the next day. So how do the sites make money? Their revenue model includes collaborating with financial institutions and telecommunication companies to offer settlement services to this entirely new market. Given people carry mobiles more than wallets this could be the next big thing::
Trend Themes
1. Social Money - Digital payment services that cater to informal transactions between friends, removing the need for cash and promoting transparency and fairness.
2. Mobile Payment - Payment systems that are accessible via mobile devices, allowing users to transfer money and pay for goods and services without the need for cash or physical cards.
3. Collaborative Payment - Financial institutions and telecommunication companies collaborate with payment service providers, catering to new markets and offering settlement services on non-traditional payment systems.
Industry Implications
1. Payment Services - The payment services industry can leverage social payment technology to enter new markets and offer innovative services to capture new customers.
2. Telecommunications - Telecommunication companies can collaborate with payment service providers, offering settlement services to its customers and monetizing new transaction streams.
3. Retail - Retail outlets can benefit from social payment technology by offering customers a payment experience that is fast, easy, and convenient, attracting new customers and promoting loyalty.