Payments

Daily Review: Shoppable Videos Are Here, Will They Change Face of Ecommerce?

MEDICIGlobal Head of Content

Given that three-fourths (75%) of the world’s mobile data traffic will be video by 2020, there is a strong chance that the future of payments will migrate from buttons in apps and mobile-friendly web pages into video-embedded options. In this study, Cisco explains that mobile video will grow at a CAGR of 62% between 2015 and 2020, higher than the overall average mobile traffic CAGR of 53%. Of the 30.6 exabytes per month crossing the mobile network by 2020, Cisco estimates that 23.0 exabytes will be due to video. Mobile video represented more than half of global mobile data traffic beginning in 2012, indicating that it is already affecting traffic today, not just in the future.

Video has been noticed as an attractive platform for commercial interaction by financial institutions that review it as a possible alternative for physical branches. In-video payments systems are not limited to commercials and other forms of short features, good ol’ product placement can finally be employed on the spot. A major advantage of in-video payments, in this case, is in the ability to measure the effectiveness of spent funds and significantly boost the profitability of any business.

Pick #1. Levi’s debuts shoppable video for holiday gift inspiration

Shoppable video is picking up traction as brands and retailers seek to lessen friction on the consumer path to purchase, and this latest version from Levi’s stands out due to its simplicity and short length. The video offers something of a torrent of products for consumers but allows shoppers to skip any hard sales pitches or other promotions. If a viewer is interested in something they see, all it takes is a click to add that product to a virtual cart. The e-commerce element is fairly simple, and the user experience is interactive, engaging and seamless, particularly when someone wants to make a quick purchase and doesn’t quite know where to begin.

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Pick #2. Two Big Banks Set to Launch Their Own Online Lending Platforms

Barclays Enters Online Consumer Lending. UK-based Barclays has been increasing their footprint in the US the last few years through the Barclaycard brand. They are now one of the top 10 credit card issuers in the US. News broke last month that Barclays would be launching a digital bank in 2018 and rebranding from Barclaycard to Barclays in the US. An integral part of this strategy will be an unsecured consumer loan offering, something they have been testing since late 2016. They are targeting prime and super-prime borrowers, loans will range from $5,000 and $35,000 and can be repaid in three, four or five years. The interest rates range from 4.99% to 18.99% and the loans carry no origination fees or prepayment penalties. They plan to launch fully in 2018 as they have originated about 15,000 loans to date through the testing phase.

PNC Financial Services. Pittsburgh-based PNC Financial Services Group is one of the top 10 largest banks in the US with $371 billion in assets. They are looking to launch their online consumer lending product in new branches and through their mobile wallet product. The new platform is expected to launch in 2018. This is a bit out of the ordinary for the bank as they have not yet had a nationwide offering like this, instead focusing on the 19 states where they have established a presence. The new product will help with their rollout to new branch markets in Minneapolis, Dallas, and Kansas City. This looks to be part of a wider digital overhaul the bank has been doing the last few years as it seeks to service customers in a more digital fashion.

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Pick #3. Estonia’s tech guru outlines ideas for digital ‘estcoin’

Estonia could become the first country in Europe to launch its own digital means of exchange – the “estcoin” – under plans outlined by Kaspar Korjus, the manager of Estonia’s pioneering e-residency scheme, in place since 2014.

Kaspar Korjus said in a blog post that the estcoin would be aimed at the Baltic country’s 27,000 e-residents – foreigners who open a company there via the web – but would not be a parallel currency to rival the euro.

Korjus said estcoins could serve one of three purposes: rewarding services to the e-resident community, verifying one’s identity online, or as a means of payment pegged to the euro.

“All three of these models of estcoin are viable and can be introduced (even without alarming the European Central Bank),” Korjus wrote in the blog post.

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Elena Mesropyan

MEDICIGlobal Head of Content

Global Head of Content, MEDICI

Elena is a research professional with a background in social sciences and extensive experience in consumer behavior studies and marketing analytics. She is passionate about technologies enabling financial inclusion for underprivileged and vulnerable groups of the population around the world.