What Instagram In-App Payments Could Mean for Business
An Instagram in-app payments feature was just added early this month.
This new feature allows users to make purchases on Instagram. How? Users can add a credit/debit card to their account, with a pin for security. After they set-up and verify the accounts, users can make purchases through their Instagram account.
Instagram hasn’t stated when it plans to roll out this service.
Weaving commerce more deeply into social media apps offers potentially huge rewards for companies behind the apps, as well as those with products to sell.
Instagram says that more than 80 percent of its 800 million-plus users follow a business on the social network. With numbers like that, the Facebook-owned company will be keen to build out its shopping services to draw in more advertisers and boost revenue even further.
What does this mean for businesses?
You’re able to show your product and store where your customers already are.
One of the biggest challenges businesses face is getting your customer to your store and check out.
While Instagram already offers shopping opportunities via tagged items shown in an image, making a purchase currently involves navigating a pop-out page and completing various steps, including entering payment details for each new merchant.
Instagram in-app payments are now erasing that hurdle for businesses. Your customers won’t even need to leave Instagram to purchase the product you’re showing on your feed. The more steps involved in the buying process, the more likely a customer is going to fall out of the funnel.
It might not seem like Instagram is the place for businesses to communicate with their audience, but Instagram reports that over 200 million Instagrammers actively visit a business profile every day.
How will Instagram in-app payments work?
One of the first equipped is dinner reservation app Resy. Some of its clients’ Instagram Pages now offer this native payment for booking. And in the future, Instagram says you can expect direct payments for things like movie tickets through the app.
A tap through to the terms of service reveals that Instagram Payments are backed by Facebook’s Payments rules.
With its polished pictures and plethora of brands, shopping through Instagram could prove popular and give businesses a big new reason to advertise on the app. If they can get higher conversion rates because people don’t quit in the middle of checkout as the fill in their payment info, brands might prefer to push people to buy via Instagram.
The whole point of Instagram not allowing links in captions is to keep you in a smooth, uninterrupted browsing flow. Getting booted out to the web to buy something broke that. Instagram Payments could make impulse buys much quicker, enticing more businesses to get on board. Even if Instagram takes no cut of the revenue, brands are likely to boost ad spend to get their shoppable posts seen by more people if the native payments mean more of them actually complete a purchase.
How can businesses utilize this?
Whenever a new trend or update comes to social accounts, your first thought should always be “How can this benefit my account?”?
Once Instagram opens up the payment option to the general public, you’ll be able to enable your audience with the ability to purchase your products and services directly on Instagram.
Until then, there are things you can do to prepare for the upcoming update.
Make sure you have an Instagram Business account
Business accounts provide businesses a lot more flexibility when it comes to managing your account and presence on Instagram.
They allow you to have an office location and hours in a separate section from a regular Instagram bio. Business accounts also have access to helpful analytics and promotional tools.
You’re also able to boost specific posts that will help you reach a wider audience.
Make sure your site is mobile-optimized.
Since you’re wanting to drive your audience to purchase from you online, the first step is to drive them to your site and store. Instagram is a mobile app, so visitors will be accessing your site from their phone or another mobile device.
Giving them a poor first impression will seriously hurt your chances of ever nurturing them into a customer.
Looking to the Future
Overall, the Instagram in-app payments update is very exciting for businesses and customers alike. Instagram is helping streamline the buyer’s journey through their app, and we’re excited to see how this will pan out.
Do you have any questions about marketing on Instagram or other social sites? Contact us here!