“Great night last night, how much do I owe for dinner? Â£25? Here you go.”
It is a dialogue that most of us have had in person, but these days it is happening more and more on social media.
The chat could be Facebook’s Messenger service and finish with a simple click to transfer money between friends.
The payment service has just been launched in the UNITED kingdom, even if the country is already in some way, behind China and the UNITED states to the widespread adoption of social media payments.
But not to interfere with the traditional bank?
“There is definitely a trend toward mobile payments in the movement in social media,” says Charlotte Crosswell, chief executive of Innovate Finance, an organisation which represents the UK’s global financial technology community.
Big players like Facebook and Google are already enabling payments through their platforms, ” he says.
“The success of companies like Paypal Venmo app in the UNITED states, which allows users to share their mobile payment messages on the social feed, has driven the incumbent operators to create similar offerings as the Zelle app.”
Venmo allows payments to be made by mobile, but also, and mainly, it allows users to follow each other account, and add comments.
“It wasn’t just another payment app when it was launched, nationalized, payments, you could pay a friend to share a dinner and add a comment that your contact could see it, as ‘great restaurant’,” says Tony Smith, head of financial services research at Ipsos.
Zelle was created by a group of banks and credit unions to offer similar capabilities. And there are others that appear. From the month of December, for example, Apple Pay users have been able to send and receive money to and from each other in the messages.
Because Sweden is close to becoming a cashless economy
Can your smartphone really to manage all of your finances?
Facebook, meanwhile, has extended his person-to-person Messenger payments capability in the UNITED kingdom in the month of November. It was introduced in the UNITED states in 2015, but the time of the launch in the UNITED kingdom, in view of the holiday season, it is not a case.
“Our research shows that the main reasons for sending money include celebrations, social and festive occasions,” says David Marcus, the head of the Messenger.
Social media companies know that if they can convince people to make more transactions through their platforms, it will strengthen the relationship and trust, their brands.
“All the big monster tech, who have the desire to inject themselves into every element of the users of the daily life”, explained Michael Kent, founder, ceo of global money transfer app Unleavened.
The effect could be even more High Street bank branches to disappear, believes Mr. Kent.
“Soon it will be rare to see a bank or money transfer store in the High Street. You will see a lot of them disappear.”
Marieke Flament is the managing director of Circle, an app that allows you to make payments through text messages.
She believes that China has developed the model that the rest of the world will follow.
“In less than 10 years they have created their own financial ecosystem, and the behavior of making financial transactions using a mobile phone is fully normalized,” he says.
As a result, “the way to manage money is going to be fundamentally different”.
Two rival mobile payment services, Tencent is WeChat and Alibaba’s Alipay, have been a great success in China.
Alipay alone has 520 million active users, but its domain has been put under pressure recently from WeChat Pay.
Three years ago, Alipay controlled 80% of the mobile payments market, now the proportion is only 54%, such as WeChat, has grabbed a 40% share of the market.
Outside of China, the USA, the social media giant can only watch in envy.
In the meantime, in the Nordic countries, person-to-person payment apps, such as Swish in Sweden and Mobilepay in Denmark, are very popular.
But the rapid growth of social media payments not to damage the banks, she believes Michael Rolph, co-founder of yoyowallet, a UK-based mobile payments loyalty app. Instead, see it as an opportunity.
“The banks will be happy to see the movement of money in digital form rather than in cash,” he says, pointing out that the movement of coins and banknotes of all, it is a costly and time-consuming activity.
“The banks are not going to be interrupted in a way that will not be necessary,” he says.
“Will continue to facilitate the money between the people and the borders, even if the majority of the movement is through social media.”More Technology of Business
Fight the fake baby milk scammers
Robotics is suited to making the ‘super workers
As the ‘super vision” will change the way we see the world
As a quick emergency services app is saving lives
But concerns about the safety of putting many to use social media to make the payments, claims Jeremy Light managing director Accenture Payment Services Europe, Africa and Latin America.
“92% of consumers are reluctant to share their [financial] information with the social media companies,” he says.
“But because social media is fun and addictive”, while the people with regard to financial services “, how much more personal and private.”
In response, companies have ramped up the security features of their products.
“When it comes to payments, we take additional measures for protection”, says the Messenger.
This means that the credentials of debit cards are encrypted and protected with “bank level security”, says the company, while the payments are monitored and any unauthorized activities have acted immediately.
Social media payments are here to stay, says Unleavened Michael of Kent, is only “the speed of travel and the destination we don’t know yet”.Follow the Technology and Business editor, Matthew Wall, on Twitter and Facebook
Click here for more Technology of Business