There’s a new way to shop on Facebook and Instagram. This is good news for this company

There’s a new way to shop on Facebook and Instagram. This is good news for this company

by
Shopify (SHOP), the e-commerce platform, expands its payment and payment system to US merchants Facebook (FB) and Instagram, which owns Facebook, in a move that significantly increases reach among consumers. The Shop Pay option is available for Instagram users from Tuesday and it will be launched on Facebook in the coming weeks.

Users will see Shop Pay, which stores customers’ payment and delivery information, as a payment option on Facebook Pay, in addition to paying with a credit card or via PayPal. Once a purchase has been made, consumers can track orders through Shop Pay.

Shopify’s share rose 7% on Tuesday. The company’s share has almost tripled in the past year.

For Facebook and Instagram, the partnership comes as a bigger stamp on retail. Instagram and Facebook have their own ‘stores’ and offer ways to purchase products directly on the platform. In 2019, Instagram introduced a payment option that allows customers to purchase products directly from a handful of pages in their app.

The research firm eMarketer predicted in a report this month that sales by people who buy goods on social media platforms such as Instagram, TikTok, Snapchat, Pinterest and others and products through social media programs in the United States will increase by almost 35% rises to $ 36.4 billion.

“It’s growing fast, but it’s still a small percentage of retail sales,” said Andrew Lipsman, an eMarketer analyst. It is not clear how big it will eventually become in the United States.

Social trade is much more prevalent in China. In China, social trade sales will reach $ 363 billion this year, eMarketer predicts. Brands like Facebook are trying to replicate the successful market in the United States.

Lipsman said Shop Pay would not be a “game changer” to get more consumers to buy products from social media platforms, but would help speed up the checkouts on Facebook and Instagram.

The partnership is important to Shopify because it is the first time that Shop Pay has been expanded beyond the Shopify platform, spreading it more widely and offering the potential to reach more customers, Lipsman said. Shopify, which primarily makes money by selling tools to businesses to help them run their online stores, is likely to benefit from partner-made purchases as well as a growing awareness of the brand among consumers.

Shop Pay was launched in 2017 and according to Shopify, the payment system was used to buy goods worth about $ 20 billion.

—CNN Business’ Kaya Yurieff contributed to this article.

.Source