Tarek Abdalla, SVP, Chief Marketing Officer CEMEA, VisaFrom manual point-of-sale machines to the seamless flow of social commerce today, the world of payments and consumer purchase expectations has undergone a dramatic transformation.
With global social commerce revenues projected to grow to more than $1 trillion by 2028, the demand for fast, secure and integrated payment solutions is more critical than ever. The future of shopping is here and it’s social.
Immersive, interactive and powered by technology
By integrating entertainment and social interaction with commerce, social commerce – including live shopping experiences on platforms such as Instagram and Facebook – facilitates seamless in-app purchases. This innovation not only streamlines the buying process but also reshapes consumer engagement and purchasing behaviour, setting a new paradigm in the retail landscape.
Nearly half (48 per cent) of consumers across nine Central and Eastern Europe, Middle East and Africa (CEMEA) markets leverage social networks for their product searches. This trend is especially pronounced in Nigeria, where an astounding 87 per cent of consumers rely on social media for discovering products, and remains notably high in Saudi Arabia at 57 per cent. With Gen Z, particularly, the search for products on social media rises to 60 per cent across CEMEA, reaching a remarkable 88 per cent in Nigeria.
Rise of augmented and virtual reality
The integration of technologies such as augmented reality (AR) and virtual reality (VR) is further amplifying social commerce by reshaping consumer interactions and enhancing purchase confidence. For example, a luxury fashion brand collaborated with Snapchat to launch the first global AR shoe try-on, allowing users to virtually try on sneakers and purchase them directly in-app, leading to increased engagement and sales.
In CEMEA, there is significant opportunity for businesses to leverage AR and VR. A recent study revealed that a third of respondents in Saudi Arabia, 26 per cent in the UAE and 25 per cent in Egypt are excited about incorporating the technologies into their online shopping experiences.
This AR/VR trend signifies the broader evolution of digital shopping, where engaging and interactive experiences are becoming the norm.
Shoppertainment: revolutionising retail with content-driven social commerce
Shoppertainment, which merges content and commerce, leverages the power of digital platforms to engage younger audiences in dynamic and interactive ways. Pioneering this movement are platforms such as Roblox, Spotify, TikTok and YouTube, which facilitate seamless product discovery through music videos, interactive games and livestreams.
For brands, this presents a unique opportunity to blend entertainment with commerce. Meanwhile, key stakeholders in the payments ecosystem can transform the shopping experience by enabling frictionless and secure purchasing journeys.
The mobile-first shopping experience
Reflecting these shifts, the surge in mobile commerce has become increasingly significant. With sales reaching $2.2 trillion in 2023, effortless buying and selling are no longer a bonus – they are the baseline.
As mobile commerce continues to grow, so does the demand for seamless payment solutions – from instant checkout to secure transactions. In fact, digital and wallet payments have made it so convenient to shop that 49 per cent of global mobile transactions are made through these payment methods.
Building trust in an evolving social commerce ecosystem
With millions of social commerce transactions happening every single day, trust is table stakes. Secure, seamless and transparent payment systems are no longer a luxury but a necessity to earn and maintain consumer confidence. As a global leader in digital payments, Visa’s network processes billions of transactions annually, deploying cutting-edge security and AI-powered systems to protect consumers and merchants alike.
But security can’t exist as a solo act. The rapid acceleration of social commerce demands a collaborative ecosystem. Businesses, online platforms, financial institutions and security providers must work together to build unshakeable consumer trust and address critical concerns around privacy and security. This approach, combined with ongoing consumer education, is the key to unlocking the full potential of social commerce and ensuring its sustained growth.
In today’s fast-paced digital world, staying relevant demands rapid adaptation. Businesses must tailor their digital payment strategies to meet evolving consumer behaviours, prioritising trust, seamless experiences and robust security.
By Tarek Abdalla, SVP, Chief Marketing Officer CEMEA, Visa
