Market Overview

Instagram Launches In-App Checkout: What You Need To Know

Instagram Launches In-App Checkout: What You Need To Know

Picture and video sharing platform Instagram announced Tuesday a new feature where users can make purchases within the app itself.

What To Know

Instagram, part of Facebook, Inc. (NASDAQ: FB)'s family of social media and messaging platforms, explained its latest monetization initiative in a video. When users view certain pictures they will be presented with a list of items for sale. Tapping the item will bring the user to a new page within the Instagram app to select their desired size, color or other features.

Billing information and shipping details need to be entered just once on the platform. When a purchase is complete, the user will receive shipping and delivery notifications from within the app itself.

Why It's Important

Instagram's latest feature is part of the company's transition to becoming a "full-fledged commerce business," The Verge's Casey Newton wrote. Prior to Tuesday's announcement, Instagram users were directed away from the app towards a pop-up web window. This created a scenario where shoppers were more likely to give up on a purchase out of frustration.

The Verge reported last year Instagram is reportedly looking to launch a standalone shopping app at some point in the future. The latest development could be seen as a step in that direction.

Facebook's stock traded up about 1.6 percent to $163.07 per share Tuesday morning.

Related Links:

Facebook Now And Then: How The Social Media Giant Has Grown In 15 Years

Report: Facebook To Unite Messenger, WhatsApp, Instagram

Posted-In: ecommerce Instagram social media The VergeNews Retail Sales Tech Media Best of Benzinga


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