This CNET article discusses how Instagram is testing a checkout option that lets users purchase products without leaving the app. The article also mentions that this is one step in Instagram’s plan of “long term investment in shopping.”
This feature is a great new revenue stream for Instagram, as they will certainly get a cut of any sales made in the app. It also is a great complement to a lot of the most popular content on the platform. Instagram is dominated by public figures and “Instagram celebrities” who use the app to build their brand. For all these people who are promoting products and doing ads on their page, it means their followers are even more likely to buy.
The payments will be processed through a partnership with Paypal and the user’s payment information will be stored within Instagram, which could be a point of tension, since Instagram is owned by Facebook. This development will likely lead to an increase in targeted ads on the app as well as an increase in companies using this new sales portal.
Do you think this change will improve the user’s experience by allowing them to check out even easier? Or do you think they will become overwhelmed with the influx of ads on the app?
– Drew Holt