Make room, Venmo. You have some company. French bank Groupe BPCE has teamed up with Twitter, and is in the process of creating a money transfer option. This option would offer French Twitter users an opportunity to send money via tweets, without knowing the recipient’s banking information. Alongside with the social medium’s newly introduced “Twitter Buy,” this innovation is a step in the realm of the financial sector.
Twitter is not the first to spark this movement. Applications such as Venmo have been actively handling users’ transactions since 2012. The application, Venmo, offers free money transfers, with bank-grade security, which are available to anyone. Users can connect with other users, transfer funds securely, and cash in funds overnight. Popular among millennials that are using the app for rent, Venmo addresses the same market that Twitter would in its pursuit to dip into the financial sector.
Though Twitter has strictly been known as a communication channel in the past, this move could expand its horizons and increase its revenue. This expansion could combat Twitter’s recent lull in activity. In addition to improving Twitter, this partnership could be beneficial in increasing awareness for the bank with which Twitter is partnering. Pairing with Twitter would be used as a marketing tactic to appear more relatable and accessible. This marketing tactic would also allow the bank to access users of a different demographic through a different platform.
I am curious to see if this method will be frequently and well used. I think a main concern for users will be the threat of poor security, because social media sites are not generally viewed as safe spaces. There have been many occasions where I have been concerned with the security of my Twitter, after seeing the spam I have received from other users, even my close friends. Personally, I feel more secure using Venmo or Chase QuickPay, though I know the security levels are probably comparable. On the other hand, millennials generally value convenience. For this reason, money transfer through Twitter may thrive. I also am curious to see how this development affects the use of Venmo.
Abboud, L., & Auchard, E. (2014, October 14). French bank turns to Twitter for money transfers. Retrieved October 15, 2014, from http://www.reuters.com/article/2014/10/14/us-twitter-payments-idUSKCN0I31OV20141014
Mann, R. (2014, October 13). French Twitter Users Can Soon Transfer Money With a Tweet. Retrieved October 15, 2014, from French Twitter Users Can Soon Transfer Money With a Tweet