Will CardSpring Make a Difference to Twitter Inc.’s (NYSE:TWTR) E-Commerce Figures?

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By Stefan Larson on November 4, 2014 Social Media

One of the struggling giants in the internet industry, Twitter Inc. (NYSE:TWTR), has bought CardSpring in order to improve its business. CardSpring is a developer company that allows the users to link the digitals apps and ads to the real business. Through CardSpring, users can connect their loyalty coupons, virtual rewards and digital points with their accounts and can shop for real. News has it that Twitter Inc. (NYSE:TWTR) has acquired the new company in order to further its e-commerce efforts and improve the numbers.

The company sealed a deal with CardSpring in the month of July, 2014. The exact deal price has not been disclosed yet. Twitter plans on using the new company as an online infrastructure company for those of its users who like to shop virtually. Since CardSpring is an online payment company that allows the retailers to promote their ads and promotions, Twitter plans on offering the users some coupons that they can connect with their credit cards so as to enjoy the discounts and rewards the next time they make a purchase from the stores that the app covers.

Twitter Inc. (NYSE:TWTR) recently held its earnings call. The company, however, refused to elaborate much upon its plans to use CardSpring for its e-commerce business. All things aside, it seems that the ocmpany is pretty serious about its e-commerce initaive, for it has realised that social networking sites can heavily influence the e-commerce business.

Apart from its acquisition of CardSpring, the company has also started its online shopping program on twitter website. It recently introduced a ‘buy’ button on its platform so that the users can make instant purchases. Not only this, but the social media site has also set up an option of ‘Cards’ in its tweets; using this option, the e-commerce companies can attach their ads with the tweets.

During the Citi Global Technology Conference that was held a couple of week back, the company announced that it is implementing several new projects, the aim of which is to bring closer the e-commerce platforms and the customers in order to increase its e-commerce conversion rates. As for now, the company is behind its competitors in the e-commerce conversion rate. The rate for Twitter Inc. (NYSE:TWTR) is currently recorded to be at 0.69 percent whereas the rate for Facebook and Google+ is at 4.41 percent and 3.14 percent respectively. The top conversion rate is recorded to be at 7.02 percent and it belongs to Email category.

The struggles and difficulties that the company is facing these days reflect on its stock prices as well. The stocks of the company plunged more than 30 percent during the current year. Twitter Inc. (NYSE:TWTR), on the last day’s trading, Nov 4, 2014, started its session at $40.01 and ended at $40.20. The company has a 52-week high of $74.73 and a 52 week low of $29.51. The stock’s market cap is recorded to be $24.74 billion.