Twitter is expanding its reach into the eCommerce space with the new service called Twitter Offers. This allows the advertisers to post their product promotions and discounts in the user’s Twitter feeds and so the users can select the offers they see on their timeline. To redeem an offer, users need to enter their debit or credit card information and they can use the same card to redeem the promotion in the store. By doing so, they can get cashback on their card. But for now, this feature is only working in US and we expect Twitter may expand this service to other countries soon. Twitter has said that it will encrypt and store the debit or credit information but users can remove it anytime.
Users can also redeem the coupon offline by just swiping their card and the price will be deducted form the final price and user will receive a notification from Twitter, informing how much they saved. The cash back savings they redeemed will appear on consumer’s online card statement within few days.
But it is not clear that how the discount amount is stored on the user’s card. Twitter doesn’t revealed how the merchant knows that coupon has been redeemed and must be applied on the final price of the transaction. Twitter is slowly tending towards eCommerce and in the process it launched Buy button in September which allows the users to make purchases from Twitter.
Branching out into the eCommerce platform could help Twitter add another revenue source as the more people are showing interest to shop online. Twitter has been trying to increase its user base amid some concerns of slowing down. It currently has more than 284 million active users per month, an increase of 23 percent from a year earlier.