Instagram to Soon Allow Direct Shopping and Payments Inside the App

07 May, 2018, 15:00 | Author: Bertha Harmon
  • Instagram’s existing Shoppable Tags feature forces you out to a business’ website to make a purchase unlike the new payments feature

The payment system may also tie in with another tweak to Instagram, created to make shopping easier via the app.

One of the initial partners is Resy which is a dinner reservation service serving locations like New York, Hamptons, Los Angeles, Napa, Chicago etc.

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A year ago in March, Instagram had made its intention clear of allowing bookings for its new application services directly through its login profile. With in-app payments, Instagram is one step closer to becoming the leading online shopping platform it always aspired to be. As per the new payment application, which is now displayed in the login of specific users, one can enter payment details into the app along with a PIN for more secured access.

Snapchat has a similar feature called Snapcash where the users can put in their debit and credit card information and use it for payments within the app. This means that today, combined side YouTube videos, iPhone users may view Instagram and face book videos directly within their whats app conversation too.

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"'We're now going to have the ability to enable larger companies, not only small businesses, to integrate a new API [application programming interface] to send and receive messages with people on the WhatsApp platform". In March 2017, the company announced its plans to give business profiles the option to let users book their services. If Instagram does find the feature useful and makes it available to all its userbase, it can go a long way to help businesses that run on Instagram. Though this might be the UPI feature, reports indicate that this payment feature can also be utilised to shop in Instagram directly. The Instagram payments feature is now available only to select users, however, we expect the global rollout to happen very soon, most possibly in the next few months to come.

The feature, as of now, is only available to a few users in the United States and UK. At the time of acquisition in 2014, WhatsApp had just 450 million monthly active users and 315 million daily active users and now WhatsApp has more than 1.5 billion users and these users are sharing more than 60 billion messages every day. So, players like BookMyShow and PayTM that sell movie tickets will be able to sell tickets on Instagram as well. The feature is now said to be in beta testing and will soon be rolled out globally.

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If Instagram brings this in a full-fledged manner for all its users, this will change the buying patterns of a lot of young users.


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