The social commerce market in Southeast Asia has already surpassed $13 billion in value, but the checkout process remains plagued by friction. Many sellers opt to forgo online storefronts and instead utilize social media and messaging apps, resulting in payment processes that involve switching between banking apps or wallets.
This bottleneck leads to low conversion rates, a problem addressed by the founders of Beam. The Thailand-based startup has developed a one-click payment solution designed specifically for social commerce sellers and has secured $2.5 million in seed funding led by Sequoia Capital India and Southeast Asia’s Surge, with participation from Partech Partners.
The Origins of Beam
Beam was founded in 2019 by Nattapat Chaimanowong, Mike Chinakrit Piamchon, and Win Vareekasem. The trio were frustrated by the repetitive process of filling out information for memberships, credit cards, and visas. They began working on a business idea to streamline form filling, which eventually evolved into Beam.
The Problem with Social Commerce
Vareekasem explained that after developing multiple Minimum Viable Products (MVPs), the team identified retailers as one of the largest groups dealing with the problem. "Form filling alone could not solve sales conversions, so payments had to be integrated too, ultimately realizing a much larger, burning problem we are going after," he noted.
Many social commerce sellers request peer-to-peer mobile banking apps, which results in limited payment options and excessive work managing payments. This can lead to poor conversions due to the lack of seamless payment solutions.
Beam’s Solution
Beam’s checkout process takes just 20 seconds and accepts all major payment service providers in each market, including BNPL leaders Atome and Pace. The company claims that sellers using their payment solution experience a significant increase in checkout success rates, up to 30%. Additionally, Beam allows sellers to save money by paying lower transaction fees, as they are exempt from subscription and platform fees charged by e-commerce marketplaces.
Beam generates revenue through a flat percentage-based fee for each transaction, depending on the payment method. For instance, it charges 2.95% for credit card transactions. The typical client base consists of medium-sized businesses processing hundreds of orders daily in various sectors such as fashion, beauty, home and living, and electronics.
Expansion Plans
Beam is currently focused on Thailand but plans to expand into Southeast Asia. While other startups aim to remove friction from social commerce, Beam differentiates by focusing on end-to-end user checkout experiences for both shoppers and merchants, ensuring that the former can check out in just one click when shopping online.
Social Commerce: Bridging Infrastructure Gaps
The growth of social commerce has helped bridge infrastructure gaps in Southeast Asia. The region’s vast population and limited access to traditional e-commerce platforms have driven the proliferation of social media-based sales. Beam’s solution addresses a pressing need for seamless payment processing, enhancing the overall user experience.
Related Topics
- Asia: Social commerce has become increasingly prominent in Asia, with Southeast Asia leading the charge.
- Beam: The Thailand-based startup has developed a one-click payment solution tailored to social commerce sellers.
- Sequoia Capital India: The venture capital firm led the $2.5 million seed funding round for Beam.
- Social Commerce: This rapidly growing market faces challenges related to payment processing and conversion rates.
Conclusion
The social commerce market in Southeast Asia has enormous potential, but its growth is hindered by friction-filled checkout processes. Beam’s innovative solution addresses this issue by providing a seamless one-click payment experience for both shoppers and merchants. With the backing of prominent investors like Sequoia Capital India and Surge, Beam is poised to expand its reach and become a leading player in the social commerce space.
About the Author
Catherine Shu is a senior reporter at TechCrunch, covering startups in Asia and breaking news. Her reporting has appeared in various publications, including the New York Times, Taipei Times, Barron’s, Wall Street Journal, and Village Voice. She holds a degree from Sarah Lawrence College and a master’s degree from Columbia University.
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