Many people no longer carry cash in their wallets and have begun completing transactions by having a conversation with early artificial intelligence products invading our homes. We are entering an exciting period in the continually evolving world of digital commerce. As a result, from time to time we’d like to share some recent developments regarding the products, opportunities, and funding in the digital commerce transformation space.
Transforming the digital payment landscape
Venmo, the nearly ubiquitous digital payment app, has reshaped the digital commerce environment over the last few years. Starting as an app you could use to transfer funds between friends, Venmo began to allow participating businesses to use the app for their transactions as well. Now another big player has emerged that might just be coming for Venmo’s spot as the most recognized, widely used service for completing transactions with digital payment.
Zelle, a company that isn’t quite like Venmo in form yet, is already surpassing it when it comes to function. Over the last year, Zelle has been home to 247 million payment transactions, totaling a whopping $75 billion. When I note the difference in form, I’m alluding Zelle’s native integration with banking systems and other eCommerce platforms, so it’s a little more subtle then opening your Venmo app to make a transaction. Nonetheless, these two platforms mostly serve the same purpose: to handle our digital sales efficiently.
The reason the name Zelle has become so popular recently is that its part of an objective to re-brand and grow an existing technology, which used to be referred to as clearXchange. The company has even been paying significant chunks of money to get their product’s name out, sometimes dishing out half a million dollars per commercial spot. Since this promotion, the service has gained the partnership and support of over 50 prominent financial institutions worldwide, and so it will be interesting to see how these efforts play out regarding generating a newer, bigger, and more responsive user audience for their product.
New developments in digital commerce: See to order
Recently, a Hong Kong-based startup called Goxip recently caused some commotion regarding the online shopping experience in Asia. Goxip is an app wherein users can post pictures of themselves wearing outfits or accessories that their viewers can quickly click to go to an online retailer where the components are available for purchase. This can be incredibly valuable for retailers, since Goxip mainly functions as an e-commerce-charged Instagram, and that’s exactly where they’re planning to go next.
Goxip just finished raising $5 million to launch their newest feature to the app: RewardSnap. This new component will bridge the gap for Asian markets, catching them up with the experiential marketing practices of the US and UK. Mainly, retailers and online businesses will have the opportunity to use their customers to promote their products in the digital space, which is critical when striving to create a vibrant and robust digital commerce community.
Products are promoted, and then the customer’s followers can buy them. The customer then gets a cut of the profit, but ultimately the product’s retailer will relish in significantly increased online revenues and client base. As mentioned above, features like RewardSnap have already been in existence for some time now. Namely, the feature’s US rival with a similar name, RewardStyle, has already generated over $1 billion in sales for over 3,500 companies since 2011. With their proven track record, it’s safe to say this will be a big move for Goxip.
Funding digital commerce transformation
Aspect Ventures, a venture capital firm has just pooled over $180 million after a second round of funding. The firm’s objective is to invest this money in companies that focus more on the issues of developing cybersecurity, digital health, and financial technology. Given my most recent article’s content, I am delighted to hear that such a thriving firm (lead by women, by the way) is pouring resources into these critical areas of research and development.
Going deeper into the topic of developing financial technology, or “fintech,” Tryb Group, a startup based in Singapore, received a $30 million investment from Makara Capital, a prominent capital group around the world that held a previous interest in the tech space. Tryb Group, which started out as a VC firm, has shifted its focus to digitizing markets that are far behind regarding digital commerce. Particularly, Tryb sees a huge need for these developments in Southeast Asia, where a population of over 500 million consumers has still been operating largely under “predominately analog” financial and banking services. Tryb strives to build a new digital future for this demographic, and Makara’s investment is one of many that will help take Tryb Group’s mission from vision to reality.
Boost company earnings by optimizing your digital commerce strategy
If any of these companies have got you thinking about how you can transform your business’s digital commerce strategy, then we’d love to hear from you. Luminos Labs has been building critical digital tools for companies for years, and so we’re confident that we can work with you to find a solution that makes sense for yours. Remember that there’s no cost or expectations associated with initial consultations.
For more on this and other topics related to digital commerce, please check back often and subscribe to our email newsletter for regular updates.