According to CEO, Gary Hadfield of Loot.co.za; the ecommerce store launched in 2003, “a trend that is predicted to have an increasing impact on ecommerce is a growing reliance on peer recommendations via social networking and reviews. Consumers are increasingly using reviews to assist them in making purchase decisions,” notes Hadfield, “And this will gain a lot of momentum in the coming year.”

Social networking has had a great impact on the paths that lead shoppers to brands, and with the option to post reviews about the product or service advertised, feedback from that of the shopper is generally considered more trustworthy than that of the sales associates.

As Facebook’s role in the socialization of the online buying process continues to grow, so does its clout in influencing people to share amongst their Facebook friends which brands they like.

Enter ZunguZ; a social app which allows you to transfer money via Facebook, providing the functionality to facilitate automated, immediate online transactions without any hassle or delay. Users are requested to grant the micropayment app permission to post on their behalf by accessing posts on their newsfeed with: ‘I just paid a friend via Facebook, safely and securely, without even knowing their bank details!’ sparking interest amongst their Facebook friends.

Robert Sussman, Co-Founder and social payments entrepreneur of ZunguZ explains, “The customer has an influence over his or her friends to promote the brand or store in question, in turn rewarding your customers for referrals and ‘eyeballs’ by way of incentive schemes.” As South African consumers become more comfortable with buying goods online and bricks-and-mortar retail outlets welcome the prospect ecommerce, the consumer demand for easy to use payment apps, like ZunguZ, will grow.

Sussman notes, “Service providers are aware of the opportunity that exists in this rapid growth sector. There will be no shortage of solutions and providers being established, and the consumer will have to be aware of what these “providers” are actually providing, at what charge and on what terms – these aspects need to be understood in order to make an informed decision.”

Facebook users spend 700 billion minutes per month in an active, yet relaxed environment where word-of-mouth is built into every turn. The traffic generated from a Facebook Page to the corresponding website plays an intrinsic role, yet only the social-savvy online retailer is able to convert his or her Facebook fans into shoppers. According to Chris Bennett and Arrel Gray, Co-Founders at Soldsie, a payment system allowing merchants to monetize their Facebook page by allowing customers to purchase through comments, “We know that there are a lot of brands that we’ve talked to that have invested a lot of money and time into Facebook commerce, and haven’t seen the results that they would like to see,” says Gray. “We’re just really excited about what we’re building at Soldsie because we’re seeing success here, and we want to take what we’re learning and take it to brands all over the world.” Says Bennett. On Soldsie, sales campaigns become Facebook posts, fans write ‘sold’ in their comments in order to purchase the goods, thereafter connect to the merchant’s Facebook page to receive an email invoice of their order and proceed to checkout.

According to Robert Sussman, Co-Founder and social payments entrepreneur of ZunguZ; a social app which allows you to transfer money via Facebook, providing the functionality to facilitate automated, immediate online transactions without any hassle or delay, Facebook apps need to remain true to their host, “A symbiotic relationship must exist between the app and the social network it was created and designed for, at ZunguZ we have placed the customer at the centre of the shopping experience, giving them the potential to act as brand ambassadors for their favourite store.”

On the topic of what the future holds for ZunguZ with regards to its impact on e-commerce, Sussman believes that there is a massive referral base, “The customer has an influence over his or her friends to promote the brand or store in question, in turn rewarding your customers for referrals and ‘eyeballs’ by way of incentive schemes.”

ZunguZ has been established to provide users linked with social network websites with the ability to handle payments via the social network channel; in turn merchants subscribed to the ZunguZ application are able to offer their shoppers an additional payment platform.

With a plethora of Facebook apps available to the online merchant, it all comes back to connecting e-commerce with social commerce and understanding the guiding principles that lead to Facebook’s global success. By keeping online sales social and the consumer at the heart of every transaction, less digital ink will be spilled and money wasted.

ZunguZ has been established to provide users linked with social network websites with the ability to handle payments via the social network channel.

From a practical consumer point of view, users at banks and financial service providers that use the ZunguZ platform, can access their accounts, withdraw finances and make payments to other users inside social networks, using the existing highly secure mechanism already offered by their bank.

Executive leadership behind the offering, Robert Sussman and Lance Fanaroff, have introduced the offering at exactly the time there is a surge of interest and investment in mobile payment systems and convergence with mobile and online platforms throughout the continent.

In a recent article published by Livdigital.co.za, international social media and digital analytics company, Socialbaker, made reference to analysis of recently submitted IPO documents by Facebook, which showed that Nigeria has the highest Facebook mobile penetration globally, with 81.2% penetration.

It has been widely publicised that Facebook’s global subscriber base is now over 1 billion.

Sussman and Fanaroff believe that the Facebook mobile platform in Africa represents a critical game-changer for the mobile payment industry on the continent and is a key opportunity for the right kind of service provider.

“Mobile payment platforms and related services are gaining traction in Africa. They meet an increasing need amongst communities for affordable way to transfer money. Mobile penetration across many African markets is on the rise and it makes sense that social networking will come into the mix as a fast, accurate and secure way to manage money.  We take mobile and add social, and it has now become a whole new dimension” Sussman explains.

Facebook’s listing and growth of its subscriber base, the high growth of mobile devices and increased focus of mobile service providers on access to the Internet via mobile has created a platform for the advancement of mobile payment services.

It is a space that leading operators, like ZunguZ, are keen to take advantage of.

“Differential quality will be in the maturity and security of architecture upon which offerings are based,” adds Sussman. “We have leadership and success in this area. The ZunguZ hosted platform has been consistently upgraded and its architecture refined to the point that it serves as a convenient and easily accessible social payment platform solution to many leading organisations across the continent..”

ZunguZ has expanded into Latin America, where it will announce its stream of payment partners shortly.

ZunguZ has been established to provide users linked with social network websites with the ability to handle personal finance via the social network channel.

From a practical consumer point of view, users can access their accounts, withdraw finances and make payments to other users over a highly secure mechanism.

Executive leadership behind the offering, Robert Sussman and Lance Fanaroff, have introduced the offering at exactly the time there is a surge of interest and investment in mobile payment systems and convergence with mobile and online platforms throughout the continent.

According to statistics supplied through research by international social media and digital analytics company, Socialbaker, of the 901 million Facebook users, 488 million (54%) of users access the social network via mobile platforms.

In a recent article published by Livdigital.co.za, Socialbaker made reference to analysis of recently submitted IPO documents by Facebook, which showed that Nigeria has the highest Facebook mobile penetration globally, with 81.2% penetration.

Sussman and Fanaroff believe that the Facebook mobile platform in Africa represents a critical game-changer for the mobile payment industry on the continent and is a key opportunity for the right kind of service provider.

“Mobile payment platforms and related services are gaining traction in Africa. They meet an increasing need amongst communities for affordable way to transfer money. Mobile penetration across many African markets is on the rise and it makes sense that social networking will come into the mix as a fast, accurate and secure way to manage money,” Sussman explains.

Facebook’s listing and growth of its subscriber base, the high growth of mobile devices and increased focus of mobile service providers on access to the Internet via mobile has created a platform for the advancement of mobile payment services.

It is a space that leading operators, like ZunguZ, are keen to take advantage of.

“Differential quality will be in the maturity and security of architecture upon which offerings are based,” adds Sussman. “We have leadership and success in this area. In addition to being one of the first apps to be included in Facebook’s app store, ZunguZ has been consistently upgraded and its architecture refined to the point that it now serves as a convenient, accessible and cost-free personal finance solution.”

The surge in interest in mobile devices and increasing interest in social media has opened up the social payment market in a major way.

It was really only a matter of time before these resources converged, offering the user all the advantages of an immediate, secure and virtual channel through which to manage finances.

Service providers are taking advantage of the maturity of the mobile services market and the availability of solutions to construct platforms and offerings to entice the consumer.

Across Africa and in rural areas specifically, the concept of using digital solutions to help manage personal finance makes sense. This is because credible social payment platforms offer consumers a cost-effective way to send and receive money – it is also beneficial because people do not have to carry cash on their persons, thus avoiding any security issues.

Social payment platforms have mushroomed in several key regions throughout the continent – specifically mobile-intensive environments including Ghana, Kenya and Nigeria.

Looking ahead there is every reason to believe certain trends will emerge to influence this segment of the market.

Leaders in this space, like Robert Sussman, joint CEO of ZunguZ, agree that aspects such as NFC and the convergence of loyalty & reward offerings with payment systems will dominate this space going forward.

“Businesses are likely to take advantage of this trend and exploit innovation to offer consumers significant value. Access to online resources continues to be a focus throughout Africa, particularly social networks. Add to this the convenience and awareness of payment services and it is a combination that really works,” says Sussman.

According to statistics supplied through research by international social media and digital analytics company, Socialbaker, of the now over 1 billion Facebook users, 488 million (54%) of users access the social network via mobile platforms.

ZunguZ is a multi-tier person-to-person payment solution converged with social network giant Facebook. The offering has been established to provide users linked with social network websites with the ability to handle personal finance via the social network channel.

From a practical consumer point of view, users can access their accounts, withdraw finances and make payments to other users over a highly secure mechanism.

This is where personal finance is heading and there is evidence to suggest it will continue to be a high-growth, high-impact area fuelling further investment across Africa.

Facebook is focusing on the payment business in a big way. The company made global headlines earlier this year when it filed its IPO at $38 a share. Analysts now predict that online payment represents an attractive business avenue for Facebook.

Robert Sussman, joint CEO of ZunguZ, the global multi-tier mobile payment platform integrated into Facebook, says that this is one of the fastest growing market segments within the broader ICT space.

“An article posted on Forbes.com specified that 15% of Facebook’s revenue last year – or almost $600 million – was generated from payments. That is a very interesting statistic because it confirms that more consumers connected to social networks are taking mobile payments seriously and more are looking to leverage off credible service providers,” Sussman explains.

ZunguZ is positioned to add value as the facilitator and service provider linking the consumer with the finance institution leveraging off social networks and social media.

Facebook has officially reached the 1-billion user mark, globally, and Sussman believes as the social network gains further ground, there is a definite opportunity to add value to consumers and provide an offering that can leverage off consumer behaviour and patterns.

“Service providers are aware of the opportunity that exists in this rapid growth sector. There will be no shortage of solutions and providers being established, and the consumer will have to be aware of what these “providers” are actually providing, at what charge and on what terms – these aspects need to be understood in order to make an informed decision,” he continues.

Research suggests that South Africa has 6,8 million Internet users and nearly 5 million Facebook users. “Our offering connects banking systems to the social graph and offers consumers a cost-free, instant and secure way to manage their finances. It is built with advanced architecture and has the level of security consumers would require to have confidence to engage online payment platforms,” says Sussman.

This activity and surge in market interest has attracted the attention of technology experts who believe they have what it takes to meet the demand for reliable service and support within digital and mobile finance space.
Whilst competition for a secure foothold within the market is fierce, there are operators that stand out because of their knowledge of the technology required to ensure the convenience that these channels promise consumers.

ZunguZ is a strong example. The offering is a global multi-tier mobile payment platform integrated into Facebook, and one of the first apps available within the Facebook app store.
The company has not only slotted in with consumer demand for access to financial portfolios via mobile technology, but added the integration with social networks as a largely untapped resource.

Whilst mobile Web sites and mobile apps are increasingly being used by financial institutions to engage customers, there is a growing awareness of the opportunity that lies in using the institution’s Web presence and social strategy to extend services.
This is the view of Robert Sussman, joint CEO of ZunguZ, who says that Facebook’s growing prominence within social networking and social media means it is a force to be reckoned with.
This clout – and that of ZunguZ as an established offering with several partnerships in place with international financial institutions, means an industry-leading partnership that can take mobile money to another level.

“An article posted on Forbes.com specified that 15% of Facebook’s revenue last year – or almost $600-million – was generated from payments. That is a very interesting statistic because it confirms that more consumers connected to social networks are taking mobile payments seriously and more are looking to leverage off the services of credible service providers,” Sussman explains.

Added to this is the social networking giant’s international following of over one billion users, which, as Sussman suggests, represents a huge pool of potential customers for any institution eager to expand the portfolio of services and embrace the social network model.
“This space is all about the convergence of mobile infrastructure, devices and applications. It is about taking the mobile resource and integrating with Web presence to serve as a conduit for personal financial administration and management. Mobile money, and the rise of social networking, is most definitely a game changer,” Sussman adds

As a follow-up to the ZunguZ pioneers money transfers via Facebook article that was published in March, we catch up with co-founder Robert Sussman regarding the progress of ZunguZ.

Briefly tell us about ZunguZ.
ZunguZ is a technology platform; it’s the first platform in the world that is partially integrated into the Facebook social graph and financial service providers. ZunguZ allows Facebook banking to take place.

How safe and secure is this in terms of exposing customer accounts? I would be concerned about any financial service provider that is offering banking services on facebook. ZunguZ is strong and we have been a global leader when it comes to fraud management. We don’t expose the bank accounts of our users to Facebook. We would only use the bank account for deposits or withdrawals once and we don’t store that kind of information. We don’t link your bank account to Facebook. Our platform sits in-between and your only risk would be the money sitting in your Facebook account (if someone hacks your page).

What is the registration process?
If you have a bank account and would like to send money to someone that doesn’t have one and they are your friend on Facebook, you can click on their profile and be able to set the amount that you’d like to send to them. Within minutes, ZunguZ will create an on-demand bank account for that person and notify them via Facebook, email or text. We are currently working on creating a Visa debit card, which will allow the user to withdraw the money anywhere in SA. The card will be available at major retailers.

In SA, how many banks are part of ZunguZ?
Any person with a bank account globally can use this service. We are currently signed with local banks and can only transfer to SA banks, but the technology allows you to transfer money globally. We haven’t concluded our money transfer licences for international transfers, but that is obviously on the cards.

What other transactions can be done via ZunguZ and Facebook?
We got contacted by various merchants all over the world who would like to be integrated into ZunguZ. We have the ability to do one-click payments, and we are the only platform on Facebook that allows you to see something, click and buy it without leaving the Facebook page and be redirected to another website. For the first time in SA, you can now buy airtime and can also buy American iTunes vouchers, without having an American address.

What does this mean for the banking industry?
The banking industry is built around money, whereas the ZunguZ platform is built around people. So it’s all about the person, what they like and what they want to buy. We don’t actually compete with banks, we work with banks. We just bridge social network and banking.

* For more information, visit: www.facebookpayments.co.za or www.zunguz.com