Users can now shop on Instagram thanks to a new feature unveiled Tuesday called “Checkout,” which lets users purchase products directly from a brand’s post, arrange payment and track shipping, all through the mobile app.
As of now, 22 business are available for in-app shopping – primarily clothing and makeup brands such as sporting goods retailer Nike (NYSE:NKE), clothing retailer H&M and Kylie Cosmetics – with more companies coming soon.
The move is a potential gamechanger for a company looking to tap into a younger online shopping demographic. According to Pew Research Center data from 2018, 72% of US teens 13 to 17 years old said they use Instagram.
When making a payment, users will be able to use their PayPal Holdings Inc (NASDAQ:PYPL) accounts. The payment app announced a partnership with Instagram on Tuesday. The company's PayPal for Partners platform allows Instagram to manage the end-to-end commerce experience.
Paypal stock rose 0.9% to $101.14.
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