I saw an interesting article this morning on SearchEngineWatch.com about a new move for American Express to allow social payments via Twitter. It’s just for the US at this stage.
American Express seems to be always looking to counter the credit card market share grabs of Visa and MasterCard (mainly Visa), so this is a pretty radical innovative jump for them to gain a new generation of potential clients through social commerce.
To me though, this opens up a whole raft of security questions, especially if someone gains access to your phone’s Twitter account and delivers the right hash tag – you’ll end paying, and they’ll end up collecting the goods. Although you would think American Express would have insurance covered on this. But it does raise potential fraud problems for social commerce into the future and definitely an area to watch.
Kids are also one to keep an eye on here as they love a smart phone. Just like them buying those tokens on FarmVille on your app, they’ll potentially have access to instant transactions although it won’t be for $5, it could be much larger and provide a nasty shock when the account arrives each month.
A video outlining this move by American Express and Twitter can be seen here:
Won’t be long before other Social Media leaders follow and one to keep an eye on.