When it comes to social media, American Express (NYSE:AXP) has been an innovator. For example, back in March it launched its Twitter Sync program, which gave discounts to customers who tweeted certain hashtags.
Well, it looks like the strategy has been a success. Now, Amex is expanding the program — that is, customers can pay for products with hashtags! It’s a seamless process because the person’s Amex card is tied to the person’s Twitter account. So far, users can purchase products from companies like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT).
Facebook (NASDAQ:FB) has shown that social commerce has lots of potential, as with its Gifts feature and the recent deal with Discover (NYSE:DFS) to create a real-world card. No doubt, it looks like Twitter sees a profit-making opportunity as well. And having the support of a marquee partner like American Express should be a great way to jump-start hashtag sales.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.