What happened
Actions of Shopify (NYSE: SHOP) rose 6.5% to a closing record of $ 1,432.99 on Tuesday after the online retail platform announced it would bring its fast checkout system to Facebook (NASDAQ: FB) and Instagram.
And
Shopify will launch its Shop Pay service for all its merchants who sell their products on Facebook and Instagram in the coming weeks. Consumers will be able to use Shop Pay as a payment option, such as PayPal, while reading popular social media sites.
By pre-filling customers’ billing and shipping information, Shopify says its checkout system can be up to 70% faster than competing platforms. These speed and safety benefits, in turn, tend to increase your merchants’ sales conversion rates.
Investors raised Shopify’s stock to new highs on Tuesday. Image source: Getty Images.
“People are adopting social platforms not only for connection, but also for commerce,” said store general manager Carl Rivera in a press release. “Making Shop Pay available outside of Shopify for the first time means that even more buyers can use the best and fastest checkout on the Internet.”
What now
Over 1.8 billion people use Facebook every day. Increasingly, users of the social media giant are buying goods as they scan Facebook and Instagram mobile sites. Shopify’s fastest and safest checkout service should accelerate this trend. The more products people buy on Facebook through the Shopify payment platform, the more profits the two companies can make.