Instagram has recently launched a payments option for its app users that allows them to register a debit or credit card as part of their profile, set up a security pin, and start shopping online without ever leaving Instagram app. The seamless integration and allowing users to enter payment information any time they want to purchase something can make Instagram a much bigger player in e-commerce.
Where to use Instagram Payments
According to an Instagram spokesperson, the payments option can be used for booking appointments at restaurants, salons etc. as the feature is currently available only for a select group of partners. In the future, users will also be able to book movie tickets directly through Instagram. The payment option is usable in the USA and UK as of current date. With its large number of brand profiles, shopping via Instagram could become very popular and give businesses a new reason to advertise on the app. If they can get higher conversion rates because people don’t quit in the middle of checkout as the fill in their payment info, brands might prefer to push people to buy via Instagram.
Currently, Instagram uses “shoppable tags” where users can tap a product in an image and then purchase it via the brand’s website. It would open a separate pop-out page and then the users have to follow the normal online checkout processes. The new seamless payment platform will make it easier as the users don’t have to leave the app screen and will result in better conversions.
It’s pretty obvious why Instagram wants to enter the e-commerce market. The social network is home to some of the latest trends in areas like fashion, design, and many more. Adding the ability for companies to sell product directly within Instagram would be huge both for both businesses and Instagram alike – and it would make Instagram even harder for business to leave. Instagram Payments Platform is an effort to support businesses and advertising on the photo-sharing platform. The seamless payments could make impulsive buyers make their purchases quicker, attracting more businesses to get on board. Even if Instagram doesn’t benefit from the revenue, famous brands are more than likely to boost ad spending to get their shoppable posts seen by more people if the native payments mean more of them actually complete a purchase.