Instagram tests payment options within app UI

In a bid to help consumers shop on the platform with ease, Instagram is testing an online payment option with the app UI to enhance the role of shopping tags rolled out last year.

As per the latest update, Instagram is planning to allow users to check shoppable items on the app itself, instead of being redirected to the seller's website. The platform aims to provide an end-to-end shopping experience to the consumers. To do this, Instagram plans to add payment options so that the user can complete the transaction within the platform. As per a report, the delivery will be taken care of by the vendor.

“Shopping is happening on Instagram today, as people click on organic shopping posts from brands on Instagram Feed or Stories, which are through a one-of-a-kind tagging of products in the post itself. People also discover products and services through Instagram Explore,” said a Facebook spokesperson.

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The Feature of 'Checkout with Instagram' was rolled out in the US capped with a 'seller's fee' for merchants selling products in the manner in March 2019. This was done with select brands and vendors. In India too, Instagram has been testing a ‘shop’ tab with select brands in the country for around six months, according to spokespersons associated with the plan.

Currently, the shop ad images reveal the prices to the users on Instagram and redirect them to the product website where they can complete the transaction. Experts believe that if users can complete the transaction in the app via the payment options, it will open a revenue stream and traffic for the platform.

“Without the Instagram checkout option being available in India, a user clicking the buy button currently has to exit Instagram, land on a brand’s website and then enter his/her address and payment details to make a purchase, the friction is still large enough to not make it the most optimal experience,” said Himanshu Gupta, Head, Walnut App.