What is Social Commerce and Why Does it Matter?

Social commerce (s-commerce) has emerged as a significant trend in the digital marketplace, bridging the gap between social media and online shopping. In 2025, s-commerce sales are expected to account for 17.11% of all online sales. By integrating e-commerce capabilities directly into social platforms, it allows users to discover and purchase products seamlessly while engaging with their favourite brands.

What is social commerce?

Social commerce, or s-commerce, refers to the use of social media platforms to facilitate the buying and selling of products and services. It encompasses a range of activities, including product discovery, customer engagement, and the actual transaction process, all occurring within the social media environment. This innovative approach leverages the power of social networks to create a more interactive and engaging shopping experience.

Social commerce vs. e-commerce

While e-commerce refers broadly to buying and selling goods online, typically through websites, apps, or marketplaces like Amazon, social commerce takes place directly within social media platforms. It’s a more interactive, community-driven approach to shopping, where product discovery, reviews, and purchases all happen in one place. Social commerce allows brands to engage customers in a more personal and relatable way, using content, influencers, and real-time interactions to drive sales. Although it’s a subset of e-commerce, social commerce stands apart by blending the social experience with the checkout process. At its core, social commerce transforms traditional e-commerce by allowing brands to connect with consumers in a more personal and relatable manner. Users can share their experiences, reviews, and recommendations, which can significantly influence purchasing decisions. Platforms like Instagram, Facebook, and TikTok have integrated shopping features that enable users to browse products, view detailed descriptions, and make purchases without leaving the app.

Here’s a look at the major social platforms driving social commerce today:

• Facebook: With Facebook Shops, businesses can create custom storefronts, highlight collections, and sync products from their e-commerce platforms, offering a familiar shopping experience within the app.
• Instagram: Through Instagram Shops, users can explore, save, and buy products without leaving the app. Facebook Shops also integrates directly into Instagram, streamlining sales across both platforms.
• Pinterest: Pinterest enables brands to utilise product pins with a direct “buy now” option and integrated checkout, making it ideal for consumers seeking lifestyle and inspiration-based shopping.
• TikTok: One of the fastest-growing social commerce channels. Features like in-feed video shopping, product tabs, and TikTok LIVE enable seamless, real-time purchases.

By harnessing the power of social media, businesses can not only drive sales but also create loyal communities of customers. But, social commerce is not just about selling; it also encompasses the creation of engaging content that resonates with users. This content-driven approach not only enhances brand visibility but also encourages user interaction, turning casual browsers into loyal customers. As such, the ability to create compelling narratives around products has become just as crucial as the products themselves in the realm of social commerce.

Why is social commerce growing?

The growth of social commerce can be attributed to several factors that align with changing consumer behaviours and technological advancements. Firstly, the rise of mobile usage has made it easier for consumers to shop on the go. With smartphones becoming ubiquitous, social media platforms have capitalised on this trend by offering mobile-friendly shopping experiences that cater to the modern consumer’s lifestyle. In fact, the global number of smartphone users is expected to grow by 42.62% between 2024 and 2029, reaching 6.1 billion users. Particularly among younger generations, such as Millennials and Gen-Z, who are digitally-led consumers, s-commerce is a comfortable and normalised way to shop. According to a study, Millennials are expected to be the most active social commerce customers in 2025, accounting for 33% of all purchases. Gen-Z shoppers are projected to closely follow, accounting for 29%.

Additionally, the pandemic fast-tracked the shift to online shopping, with many consumers turning to social media for product recommendations during lockdowns. In response, more brands are embracing social commerce to meet shoppers where they already spend their time. According to recent data, Facebook, YouTube, Instagram and TikTok are among the most popular social networks as of February 2025. With more than 1.5 billion TikTok users, Instagram floats only slightly ahead with 2 billion users, with Facebook leading social platforms with 3.07 billion users. These staggering numbers showcase the global reach and influence of social platforms among consumers.

Trust in social platforms as shopping channels is also growing. Thanks to user-generated content, live streams, and influencer endorsements, consumers feel more confident buying directly through these platforms. Secure payment options further enhance this trust by making transactions seamless and safe.

Shopping today is as much about connection as it is about products. Social commerce offers an interactive experience, through comments, likes, and shares, that builds community and brand loyalty.

Where is social commerce most popular?

Social commerce is gaining traction globally, but certain regions have embraced it more fervently than others. In particular, Asia-Pacific countries, such as China, have seen explosive growth in social commerce. Platforms like WeChat and Douyin (the Chinese version of TikTok) have seamlessly integrated shopping features, allowing users to purchase products directly through social interactions.

In China, social commerce has become a dominant force, with a significant percentage of consumers engaging in shopping via social media. In 2024, 95% of online shoppers in China made purchases through social media platforms, which was only 1% more than those in Thailand. China’s social commerce scene is led by popular platforms such as ByteDance’s Douyin and Xiaohongshu, coupled with popular brands filtering onto consumer algorithms to boost their discovery.

In Western markets, while social commerce is still in its nascent stages compared to Asia, it is rapidly gaining popularity. In Europe, more than 80% of the population uses online social networks, and social commerce saw revenue of 32.7 billion USD, which is expected to reach more than 41 billion USD by 2026. Platforms like TikTok, and Facebook are continually enhancing their shopping features, making it easier for brands to showcase their products and for consumers to shop. As more brands recognise the potential of social commerce, its popularity is expected to grow significantly in regions like North America and Europe. Additionally, live demonstrations and live-feed sales have been pivotal to this growth, as consumers place value on authentic experiences from recognisable users. This shift towards community-driven recommendations is reshaping the way brands approach marketing, encouraging them to cultivate genuine relationships with their audience and leverage opportunities to push fast-checkout sales through the app.

How social commerce is influencing payments

The rise of social commerce is not only changing the way consumers shop but also how they pay for their purchases. Traditional payment methods are being supplemented or even replaced by new, innovative solutions that cater to the unique needs of social commerce. For instance, social media platforms are increasingly integrating payment options directly into their apps, allowing users to complete transactions without being redirected to external sites.

This shift towards in-app payments is designed to create a seamless shopping experience. In essence, users can browse, engage, and purchase all within the same platform, reducing friction and increasing the likelihood of conversion. Additionally, many social platforms are partnering with payment providers to offer secure, fast, and convenient payment solutions, further enhancing the user experience.

Moreover, the rise of digital wallets and buy-now-pay-later (BNPL) options is also influencing payment behaviours in social commerce. Consumers are now more inclined to use these flexible payment methods, which allow them to manage their spending while still enjoying the convenience of shopping through social media. As these payment options become more prevalent, they are likely to shape the future of social commerce transactions. Consumers are clear on their expectations of convenience, security and simplicity. And so, the need for the right payment methods (including alternative payment methods, credit cards, cash) and flexible ways of paying (pay by link, subscription payments and instalments) are becoming a baseline expectation.

In addition, the global nature of social commerce is pushing for more diverse payment options to cater to a wider audience. As brands expand their reach into international markets, the demand for localised payment solutions is growing. This means that social commerce platforms are increasingly offering multi-currency support and various payment methods that resonate with audiences of different demographics and varying markets globally. 

How can merchants optimise their payment experience for s-commerce?

The rise of social commerce is reshaping how consumers discover and purchase products, and payments play a crucial role in creating a seamless shopping experience. For merchants looking to tap into this growing trend, optimising the payment journey is essential. Unlimit’s Chief Customer Officer, Irene Skrynova, shares her tips for merchant success:

Meet Customers Where They Are

Fintech innovations have made it easier than ever for businesses to reach global audiences through social platforms. But to truly connect with these consumers, merchants need to offer payment experiences that feel local, no matter where the buyer is.

That means integrating payment methods that cater to regional preferences. Whether it’s local currencies, popular payment apps, or flexible options like instalments or subscriptions, consumers want choices that match their financial habits.

Build Trust With Seamless In-App Payments

Payment institutions, like card issuers, networks, and payment facilitators, are helping shape the future of social commerce by enhancing in-app payment capabilities. Secure, fast, and mobile-first checkouts aren’t just nice to have, they’re expected.

Given that most social media engagement happens on mobile, the checkout experience needs to be smooth and intuitive. Features like digital wallets, one-click payments, and auto-filled details can turn a complex transaction into a nearly invisible one, ultimately boosting conversions and repeat purchases.

Embrace a Wide Range of Payment Options

Today’s consumers want flexibility. Beyond traditional cards, they expect to pay with digital wallets, Buy Now, Pay Later solutions, and even emerging options like digital currencies. To meet this demand, social platforms are increasingly partnering with payment providers to offer diverse, embedded payment experiences.

By embracing these trends, merchants can not only improve the customer experience but also unlock new revenue opportunities across global markets.

Ready to Elevate Your Social Commerce Payments?

As you navigate the exciting world of social commerce, the right payment partner can make all the difference. Unlimit offers a comprehensive suite of global payment solutions that are perfect for businesses looking to streamline their social commerce transactions. With over 1000 local and global payment methods, we ensure that your business is equipped for success in a borderless market. Experience seamless transactions by exploring our payment solutions today and unlock the full potential of your social commerce strategy.