Twitter Rises as MasterCard Hints at a Potential Tie-Up
Twitter, Inc TWTR jumped nearly 7% after MasterCard MA hinted at a possible collaboration with the micro blogging site as it works on building its own payments system.
Talking to CNBC at the Money 2020 Fintech conference, MasterCard‘s president of international markets stated that “we see companies like Facebook and Twitter occupying a really good space in social media and we are always over in Silicon Valley talking to those companies." He also added that the company was trying to figure out how it could get its network into the space of the social media services and connect up.
Twitter’s Buy Now button has been of particular interest to MasterCard as is Facebook’s peer to peer money transfer service.
Last September, Twitter’s launched the Buy Now button nationwide,making online retailing easier than ever. The company has partnered with the three largest e-commerce platforms Demandware, Bigcommerce, and Shopify so that merchants who use these platforms can easily sell their merchandize on Twitter via a single tweet.
Twitter has also brought on board big retail brands like Best Buy Co., Inc. BBY and Pacific Sunwear of California Inc. PSUN. The partnerships will be powered by Stripe Relay.VP of Commerce, Nathan Hubbard had said then “the goal for all our commerce initiatives on Twitter is simple: make it as easy as possible for businesses to connect directly with, and sell to, customers on Twitter. With Buy Now, businesses can drive more conversions and remove much of the friction in the mobile purchasing process.”
Buy buttons are the next big thing for e-commerce. Social media services are looking for newer ways to boost revenues and e-commerce is one of the potential options. The idea is to provide users with things they want to buy on the platform without having to leave the app, boosting engagement levels as well attracting new users. As for Twitter, this could prove to be a boon as the company battles stagnating user base and boost profits.
At just 320 million users, it has a long way to go before it can match Facebook, Alphabet’s YouTube, WhatsApp (close to 1 billion) or even the photo sharing service, Instagram, with more than 400 million users. In the last reported quarter, the company incurred an operating loss of $67.2 million.
Twitter at present is a Zacks Rank #3 (Hold) stock.
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