Recently, Instagram quietly launched a native payments feature on the platform. Their new feature will be a great incentive for businesses to start advertising with Instagram if they are not already. With the payment feature, Instagram users can add their debit or credit card to their account along with a security pin in order to start shopping on the app. Their new payment feature could be a game changer in the area of online commerce.
This addition allows users to easily shop for certain products without having to leave the social media platform. Instead of being forwarded to a secondary website to complete purchases, Instagrammers can easily buy products right on the app. According to Techcrunch, these payment options are are now visible to some users in the United States and the United Kingdom.
Their native payments are not only for products – they have also made payments for bookings available to few partners. Techcrunch says that one of the first to try out this feature is Resy, a dinner reservation app. Some of their clients’ pages offer bookings and native payments right on their profiles. Whether you want to book a dinner reservation or a hair salon appointment, you can now reserve and pay for various services through the app.
In addition, Instagram announced that users will be able to pay for other events and services directly on the app in the future. For example, users can expect to be able to pay for movie tickets without having to leave the Instagram app.
There are many benefits for businesses to use the native payment feature, which increases the likeliness that many will be inclined to try it out.
First of all, native payments are designed in a way that does not disrupt user experience. Instagram’s app has a certain flow and it is easy to navigate around. That is part of the reason why young adults favor the social media app over many others. With this new feature, Instagrammer’s experience on the app is not compromised by disrupting advertisements. Instead, native payments blend in with the app, and facilitate purchasing for shoppers.
Another big advantage of Instagram’s native payments is that it allows businesses to catch impulsive buyers. The payment options show up while Instagrammers are scrolling through the app, and provides a window for them to make quick purchases by tapping their phone a couple of times. With native payments, users do not have to enter their personal information. The convenience of the feature means that users have less time to think about what they are buying, and as such, they are more inclined to make impulsive purchases.
Finally, the payments option provides the perfect opportunity for businesses to use the feature in combination with an influencer marketing campaign. Instagram is the social media platform of choice for young people, and young adults are typically regarded as an impulsive demographic. Thus, native payments are a great way for businesses to target young shoppers. Additionally, young people are more apt to buy products that are endorsed by influencers. In fact, Invesp reported that 94% of people trust product recommendations from influencers more than those from friends and family members. Since youths trust influencers and have impulsive tendencies, businesses can establish a winning marketing campaign involving influencers and native payment.
As noted by Techcrunch, it is possible that this new feature will work with Instagram’s ‘Shoppable Tags’, which were introduced in 2016. Shoppable Tags allow users tap on products they see on a post, which forwards them to a brand’s web page where they can purchase the product. Instagram has expanded this shopping feature to more countries as of March.
The native payments feature could also lead to higher conversion rates for businesses. Since consumers can complete purchases easily without having to fill in payment information, brands may want to push their customers to make purchases on Instagram.
While this feature is not yet available to all brands and is not visible in most countries yet, it will likely grow in popularity among businesses as it becomes more widely available to them.