Number of British Social Commerce Businesses Will Double in 2020

24% of British businesses allow customers to pay through social commerce channels; nearly half of all British businesses should have that by May 2020.

Written by

Corepay

Last updated on

December 29, 2024
Uncategorized

Online sales through social media apps and sites is predicted to double in the United Kingdom, according to PayPal’s fourth annual commerce index, which it released at this past November.

PayPal said that 24% of British businesses already allow customers to pay through social channels, so nearly half of all British businesses should have social buying capabilities by May 2020.

Social selling has been a real boon for British businesses, in fact. PayPal says that of those businesses that already sell through social channels, 38% of their total sales volume comes through social media.

But despite these glowing outlooks, the UK is still quite a bit behind:

That’s a big number, but it compares with a global average of 45% of sales volume. UK sellers and buyers are clearly playing catch-up on social commerce. And, that means a huge opportunity for UK businesses to get ahead of the game. Currently 8.4m British consumers shop via social media2, with Facebook, Instagram and Snapchat being the most popular channels. A fifth of those already purchasing through social do so weekly, with individual social spending averaging £71 monthly.

A Hat Shop in York, England. Shops like these, which have a social commerce side, may see some unexpected growth in that industryAccording to the report, 8.4 million British shoppers already use social media — especially Facebook/Facebook Messenger, Instagram, WhatsApp, Snapchat, and now TikTok — to make their purchases. And the number of new social-friendly businesses should reach an additional 600,000.

“As Brits continue to lead increasingly busy lives relying on their smartphones more than ever to help them make the most of their time, it’s important that businesses are in a position to cater for this,” Nicola Longfield, senior director of small and medium businesses at PayPal UK, said on the PayPal website. “Our data reveals a substantial rise in the number of businesses that plan to sell through social media over the coming six months, capturing a consumer’s attention in the very place they go to for inspiration.”

PayPal and other social selling channels are ideal methods for accepting alternative forms of payment, but as we recently learned, even these alternate methods can get a little spooked at certain high-risk merchant activities.

For example, PayPal cut adult entertainment site, Pornhub, for reasons that are still unclear.

“Following a review, we have discovered that Pornhub has made certain business payments through PayPal without seeking our permission. We have taken action to stop these transactions from occurring,” a PayPal spokesperson told Vice magazine.

So while PayPal’s push for social commerce is certain a step in the right direction for many online businesses and apps, it’s still not a panacea for all high-risk merchants. This is where having a merchant services provider that specializes in high-risk industries like adult, gambling, cryptocurrency, and even travel agents, retail outlets, and law firms.

To learn more about alternate forms of payment and how you can protect your own high-risk merchant services account, please visit the Corepay website or call us at (800) 408-0095.

Photo credit: WolfBlur (Pixabay.com, Creative Commons 0)

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