Caymans Post

A world within. A state apart.
Friday, Mar 29, 2024

There's a new way to shop on Facebook and Instagram. That's great news for this company

There's a new way to shop on Facebook and Instagram. That's great news for this company

People looking to buy the items they spot on social media platforms now have one more alternative to paying with their credit cards.

Shopify (SHOP), the e-commerce platform, is expanding its checkout and payment system to US-based merchants on Facebook (FB) and Instagram, which Facebook owns, in a move that significantly widens its reach among consumers. Its Shop Pay option is available to Instagram users beginning Tuesday, and it will roll out to Facebook in the coming weeks.

Users will see Shop Pay, which stores customers' payment and shipping info, as a payment option on Facebook Pay, in addition to paying with a credit card or via PayPal. Once a purchase is made, consumers can track orders through Shop Pay.

Shopify's stock closed up 7% on the news on Tuesday. The company's stock has nearly tripled in the past year.

For Facebook and Instagram, the partnership comes as they are trying to make a bigger mark on retail. Instagram and Facebook have their own "shops" and offer ways to purchase products directly on the platform. In 2019, Instagram introduced a checkout option that allows customers to purchase products directly off a handful of companies' pages within its app.

Research firm eMarketer predicted in a report this month that sales by people shopping for goods on social media platforms like Instagram, TikTok, Snapchat, Pinterest and others and buying products through social media apps will rise by nearly 35% in the United States this year to $36.4 billion.

"It's fast growing, but it's still a small percentage of retail sales," said Andrew Lipsman, analyst at eMarketer. It's not clear how big it will eventually get in the United States.

Social commerce is much more common in China. In China, social commerce sales will reach $363 billion this year, eMarketer forecasts. Brands such as Facebook are trying to replicate that successful market in the United States.

Lipsman said that Shop Pay would not be a "game changer" to get more consumers to buy products off social media platforms, but it would help speed up checkouts on Facebook and Instagram.

The partnership is significant for Shopify because it is the first time Shop Pay has expanded outside the Shopify platform, giving it wider distribution and the potential to reach more customers, Lipsman said. Shopify, which mainly makes money by selling tools to businesses to help them run their online stores, will likely benefit from purchases that take place through the partnership, as well as growing awareness of its brand among consumers.

Shop Pay launched in 2017 and Shopify said the checkout system has been used to purchase nearly $20 billion worth of goods.

Newsletter

Related Articles

Caymans Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×