In collaboration with France’s biggest bank in terms of client numbers, Groupe BPCE, Twitter will offer a new mobile payment service targeting young users.
Dubbed S-Money, the new service is expected to be launched as early as this week and will allow Twitter users to transfer money via tweets.
Rival Facebook is also working on a similar type of service, but Twitter appears to have a competitive edge. While young adults are shunning larger social networks in favour of messaging apps, the latter remains popular with young users.
In fact, 27 per cent of 7,500 US teens surveyed considered Twitter their top network for 2014, while only 23 per cent held this sentiment for Facebook. This is according to a survey by investment banking firm Piper Jaffray.
“If it comes to the US, [the service] could conceivably leapfrog existing online payment processes like PayPal and Google Wallet, given Twitter’s massive user base,” noted CreditCardForum.com’s President Ben Woolsey.
Meanwhile, experts believe that Twitter’s mobile payment service geared towards clients who are under 35 year old could become successful, at least in the United States.
For example, Telecommunications Analyst Jeff Kagan pointed out that young adults don’t like carrying around big amounts of cash. Only 20 per cent of Americans aged 18 to 30 carry paper currency with them at all times, revealed research by CouponCodes4U.
Furthermore, a study by Accenture shows that 77 per cent of Americans aged 18 to 34 are more likely to use nonbank payment services, compared to 58 per cent of people between the ages of 35 and 54. Meanwhile, only 28 per cent of those older than 55 are open to the idea.