what happened
Shares of Shopify (NYSE: STORE) climbed 6.5% to a record high of $ 1,432.99 on Tuesday after the online retail platform said it was Facebook (NASDAQ: FB) and Instagram.
Approximately
Shopify will be launching its Shop Pay service on Facebook and Instagram in the coming weeks to all its retailers selling their wares. Consumers will be able to use Shop Pay as a payment option, such as PayPal, when you visit popular social media sites.
By proposing the purchase of billing and shipping information from buyers, Shopify says the payment system can be as much as 70% faster than competing platforms. These speed and security benefits tend to increase traders’ turnover rates.
Investors offered Shopify’s shares to new highs on Tuesday. Image Source: Getty Images.
“People are embracing social platforms not only for connectivity but also for commerce,” store manager Carl Rivera said in a press release. “Making Shop Pay available for the first time means that even more buyers can use the fastest and best payment point on the internet.”
Now what
More than 1.8 billion people use Facebook every day. Increasingly, users of the social media giant are buying goods while scanning through Facebook and Instagram’s mobile sites. Shopify’s faster and more secure payment service should accelerate this trend. The more goods people buy on Facebook via Shopify’s payment platform, the more profits both companies can make.