Thailand startup Beam was founded with the goal of being a one-click payment solution for social commerce sellers. In other words, they want to streamline the buying process for retailers who conduct transactions on platforms like Facebook and Instagram by allowing people to pay there as opposed to jumping out to a different mobile app.
According to the tech firm, it takes only 20 seconds to checkout and all major payment service providers are accepted. They also claim to have increased the checkout success of their clients by up to 30 percent.
Beam charges a flat percentage for each transaction based on the payment method with credit cards being hit with a 2.95 percent fee. The startup believes sellers benefit since they pay lower transaction fees while avoiding subscription or platform dues.
Last year, the company received US$2.5 million in seed funding with Surge, Sequoia Capital India and Partech Partners among the notable investors. This will go towards scaling up its business in Thailand along with exploring Southeast Asia expansion opportunities.
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Can Thailand startup Beam be successful?
It remains to be seen if Thailand startup Beam has created technology retailers using social media platforms truly need. The innovation may be a convenience but having seen how this ecosystem works firsthand, a one-click payment solution isn’t exactly a priority.
For starters, the Thai public is extremely savvy when it comes to digital payments. The idea of opening a mobile banking app to pay for goods purchased on Facebook is not that big of a hassle. And they may feel more comfortable using their bank than sending money via a little-known, third-party function sent to them.
In some cases, the logistics don’t make sense. Beam noted that its clients are medium-sized businesses that process a few hundred orders daily with a focus on fashion, beauty, home and living and electronics companies.
These are all industries that require a real person to be responding to social media chats. Potential clients have very specific questions that even the most sophisticated chatbots can’t handle. People will get annoyed and stop communicating if they feel those aren’t getting answered. This also means they can actively follow up on payments.
In a lot of cases, social media order abandonment is less about payment difficulties or a lack of customer engagement and more to do with potential shoppers simply trying to find better deals elsewhere. If they know how much it costs to buy something via a retailer’s social media, their next stop is likely Lazada, Grab or anywhere else their goods are listed.
That is where Thailand startup Beam can have the most success. Not only as a payment tool, but as a way to ensure shoppers are getting the best price from a company without having to navigate a ton of platforms. From there, they can carry out the transaction over Instagram, Tik Tok or wherever.
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