{"id":1777,"date":"2021-03-23T10:36:00","date_gmt":"2021-03-23T10:36:00","guid":{"rendered":"https:\/\/expleo.com\/global\/en\/?post_type=insight&#038;p=1777"},"modified":"2025-05-07T09:19:24","modified_gmt":"2025-05-07T09:19:24","slug":"payments-through-social-channels-how-to-be-safe-and-secure","status":"publish","type":"insights","link":"https:\/\/expleo.com\/global\/en\/insights\/blog\/payments-through-social-channels-how-to-be-safe-and-secure\/","title":{"rendered":"Payments through social channels \u2013 how to be safe and secure"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1777\" class=\"elementor elementor-1777\" data-elementor-post-type=\"insights\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bc55e0c gg-article-content  gg-standard-article-template gg-simple-text gg-container-small-pt-72 gg-pb-72 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bc55e0c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ee1b85a\" data-id=\"ee1b85a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fe710fd gg-font-v9 gg-class-for-iphone8  elementor-widget elementor-widget-text-editor\" data-id=\"fe710fd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In many countries, the last ten years have seen a decisive shift from cash to digital payments. During the coronavirus crisis, many governments and retailers have actively discouraged using cash; if some form of digital payment, ideally contactless, could be used instead, the move away from cash has accelerated.\u00a0<\/p><p>In many markets, increased use of digital payments has also been assisted by a growth in the number of\u00a0<a href=\"https:\/\/expleo.com\/global\/en\/insights\/whitepapers\/whitepaper-digital-payments\/\" data-wplink-url-error=\"true\">digital payment\u00a0<\/a>methods available. These include peer-to-peer (P2P) payment tools, for transferring cash between individuals; some of which can be used through social media platforms as P2P social payments.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-be991f9 gg-display-none-print elementor-widget elementor-widget-image\" data-id=\"be991f9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"468\" src=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-1182x720-1-768x468.jpg\" class=\"attachment-medium_large size-medium_large wp-image-1781\" alt=\"Phone with virtual icons\" srcset=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-1182x720-1-768x468.jpg 768w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-1182x720-1-300x183.jpg 300w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-1182x720-1-1024x624.jpg 1024w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-1182x720-1.jpg 1182w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-013ad80 gg-font-v9 gg-text-with-paddingbottom gg-class-for-iphone8 gg-print-pb-4 elementor-widget elementor-widget-text-editor\" data-id=\"013ad80\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Volumes and transaction values of such P2P social payments are growing, in part because the use of social media also continues to increase. By July 2020, 3.96 billion people \u2013 approximately half the world\u2019s population \u2013 were active users of social media, according to figures from Datareportal. The statistics are mind-boggling: in July 2020, Facebook had 2.6 billion users; WhatsApp 2 billion; Facebook Messenger 1.3 billion; and Instagram just over 1 billion. Hundreds of millions of people use several other platforms, including Twitter, Tiktok and Sina Weibo. The vast majority of social media users (about\u00a04.33 billion) use smartphones to access these platforms.<\/p><p>In that context, it is unsurprising that fintech firms, banks and social media platforms have all developed P2P social payment tools. These services must offer both convenience and\u00a0<a href=\"https:\/\/expleo.com\/global\/en\/services\/product-engineering\/\">security<\/a>\u00a0if they are to succeed, but in societies where smartphone use and digital payments have become the norm, there is enormous potential for further growth in the use of these services.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-845d22c gg-font-v4 gg-custom-dark-purple-color gg-print-pb-4 elementor-widget elementor-widget-heading\" data-id=\"845d22c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Easy, convenient and free<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-60100b9 gg-font-v9 gg-text-with-paddingbottom gg-class-for-iphone8 elementor-widget elementor-widget-text-editor\" data-id=\"60100b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The first digital P2P cash transfer service was offered by PayPal almost 20 years ago as a way for consumers to pay for eBay purchases. At the time, many people were still nervous about using credit cards online, while many eBay sellers lacked either the need or the means to set up a merchant account with a credit card company.\u00a0<\/p><p>The P2P social payment services developed more recently can be used for multiple, everyday purposes but are perhaps particularly useful when individuals want to transfer small amounts of money to each other: when splitting a bill in a restaurant, for example. They can also be offered free of charge to consumers (although not all services are free for all transactions) because social media platforms derive significant revenue through advertising.The P2P social payment services developed more recently can be used for multiple, everyday purposes, but are perhaps particularly useful when individuals want to transfer small amounts of money to each other: when splitting a bill in a restaurant, for example. They can also be offered free of charge to consumers (although not all services are free for all transactions), because social media platforms derive so much revenue through advertising.<\/p><p>Well-established P2P services include Venmo, in the US, which PayPal owns. Users can sign up for the service via Facebook, through which they can also transfer money to other Facebook users. They can find non-Facebook users by searching for their Venmo user name or phone number.\u00a0<\/p><p>Venmo users access a newsfeed-like interface through the app, which shows their recent transactions. Some of these details are also shared with friends in their Venmo network unless users ask for this information to be kept private; the\u00a0<a href=\"https:\/\/www.ftc.gov\/news-events\/press-releases\/2018\/02\/paypal-settles-ftc-charges-venmo-failed-disclose-information\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Trade Commission (FTC)<\/a>\u00a0has reprimanded Venmo in the past for revealing too much end-user personal information. Venmo had 52 million active accounts by the end of 2019 and\u00a0<a href=\"https:\/\/www.forbes.com\/sites\/donnafuscaldo\/2020\/01\/30\/paypal-all-in-with-venmo-in-2020\/?sh=30746c713599\" target=\"_blank\" rel=\"noreferrer noopener\">processed more than $102 billion<\/a>\u00a0during the year.<\/p><p>Another US-based P2P service, Zelle, is owned by a group of major US banks and can be used by customers of many US banks and credit unions, via their existing banking apps, for money transfers. If a potential recipient\u2019s bank does not work with Zelle, they can still use the service by downloading the Zelle app and providing a mobile phone number and email address. Some US banks also now allow small businesses to accept payment via Zelle. There were\u00a0<a href=\"https:\/\/www.zellepay.com\/press-releases\/consumers-and-small-businesses-significantly-increase-use-zelle-1st-half-2020\" target=\"_blank\" rel=\"noreferrer noopener\">519 million transactions<\/a>\u00a0made using the service during the first half of 2020. Elsewhere, Facebook has struggled against regulatory and technical problems but (at the time of writing) looks likely to launch WhatsApp Pay in both Brazil and India shortly.<\/p><p>But perhaps the most exciting example of a P2P social payment service that could be used in multiple jurisdictions in future is Facebook Pay, already available in the US. Users input account or card details once they can use the service to make payments to businesses, donate to charities, and make P2P transfers. They can access the service from Facebook, Messenger, Instagram or WhatsApp accounts.\u00a0<\/p><p>This is Facebook\u2019s second attempt to launch an effective social P2P payments service: a previous system based on Messenger was closed in the UK and France in 2019 after failing to attract many users. It will be fascinating to see how quickly Facebook rolls this service out to other countries. Facebook\u2019s broader business model\u2019s success means it does not currently need a money transfer\/ P2P payments service to bring in any revenue: during 2019,\u00a0<a href=\"https:\/\/investor.fb.com\/investor-news\/press-release-details\/2020\/Facebook-Reports-Fourth-Quarter-and-Full-Year-2019-Results\/default.aspx\" target=\"_blank\" rel=\"noreferrer noopener\" data-wplink-edit=\"true\">revenue from advertising was $69.6 billion<\/a>, an increase of 27% compared to 2018.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d9459e7 gg-display-none-print elementor-widget elementor-widget-image\" data-id=\"d9459e7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"488\" src=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-3-4-3-convertimage-1024x624.jpg\" class=\"attachment-large size-large wp-image-1780\" alt=\"Button with red inscription risk\" srcset=\"https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-3-4-3-convertimage-1024x624.jpg 1024w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-3-4-3-convertimage-300x183.jpg 300w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-3-4-3-convertimage-768x468.jpg 768w, https:\/\/expleo.com\/global\/en\/wp-content\/uploads\/2021\/10\/social-payments-3-4-3-convertimage.jpg 1064w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae5bec8 gg-font-v4 gg-custom-dark-purple-color gg-print-pb-1 elementor-widget elementor-widget-heading\" data-id=\"ae5bec8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Risk management and mitigation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9d800ab elementor-widget elementor-widget-text-editor\" data-id=\"9d800ab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>P2P payments via social media are inevitably subject to security risks, including the exposure of consumers\u2019 bank account, credit or debit card information. If security measures prove inadequate and consumers\u2019 accounts are hacked, there may be no adequate insurance coverage for losses incurred. Service subject to high levels of fraud also poses significant financial, regulatory and reputational risks to\u00a0<a href=\"https:\/\/expleo.com\/global\/en\/industries\/banking-and-financial-services\/\" data-wplink-url-error=\"true\">financial services<\/a>\u00a0companies, fintech, social media platforms and other stakeholders.\u00a0<\/p><p>These companies are fully aware of the danger posed by these continuously evolving risks. Security measures are taken to address them include more widespread use of two-factor authentication in various forms, including biometrics, OTP codes and secondary security devices to authenticate end-user identity, plus transaction monitoring or device use analysis processes that can identify suspicious activity.\u00a0<\/p><p>But individual consumers must also take some responsibility for ensuring the security of transactions. Steps they should be encouraged to paying close attention to advice from service providers about using services safely, using strong passwords, logging off websites after transactions, and above all, simply checking carefully to ensure money is being moved into the correct bank account.\u00a0 It is also essential for services to comply with all relevant regulatory and legislative requirements, including the EU Payment Services Directive (PSD2) within the EU, guidelines for accessing UK bank accounts through the Open Banking initiative, and relevant data protection applicable within a given jurisdiction. Such regulations are subject to change, and it seems likely that they will tighten in future as the use of digital payments, in general, continue to grow.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b62e928 gg-font-v4 gg-custom-dark-purple-color elementor-widget elementor-widget-heading\" data-id=\"b62e928\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The promise of P2P social payments<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09cf70c elementor-widget elementor-widget-text-editor\" data-id=\"09cf70c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>With the implementation of adequate security measures, P2P social payments can be made safely. A growing number of consumers will find these services easy and convenient, and they may also help some people poorly served by the current banking system, such as the unbanked, who might not have a bank account but may well have social media accounts and a smartphone.<\/p><p>The evolution of this form of payment forms part of broader changes in the way consumers make payments. These changes will cause significant financial and economic disruption while raising important questions about how consumers and businesses interact with social media and the data generated by those interactions.<\/p><p>But if suitable measures are taken to ensure that the use of these tools is safe, then businesses enabling their use, along with their customers, investors and the economies of countries where these services are made available, will all benefit. If they are not already doing so, businesses and other organisations would be wise to keep an eye on the subsequent development phases in P2P social payments.<\/p><p>To talk to Expleo about how to harness the ever-evolving power of technology to gain a competitive advantage, email\u00a0<a href=\"mailto:customersuccess.esl@expleogroup.com\">customersuccess.esl@expleogroup.com<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Peer-to-peer (P2P) payment tools, used for cash transfer between individuals, including social media, have increased digital payments.<\/p>\n","protected":false},"author":67,"featured_media":1781,"parent":0,"template":"","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","footnotes":""},"topic":[212,145],"insights-single-templates":[316],"industry-taxonomy":[38],"content-type":[23],"country":[141],"service":[216,59],"class_list":["post-1777","insights","type-insights","status-publish","has-post-thumbnail","hentry","topic-data-science-and-cybersecurity","topic-digital-transformation","insights-single-templates-old-template","industry-taxonomy-banking-and-financial-services","content-type-blog","country-global","service-digital-transformation","service-application-transformation-assurance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Expleo | Payments through social channels<\/title>\n<meta name=\"description\" content=\"Peer-to-peer (P2P) payment tools, 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