Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

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.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
×