As TechCrunch reports , there will be a new Instagram Payments feature to buy products DIRECTLY on Instagram: Instagram Shopping Lv. 2.
How does it work?
Instagram Payments: Reservations and Tickets Get Started
In the US and some parts of the UK, the Instagram app has another menu item called Payment Settings. Payment information can be stored here and when a purchase is made, it must be confirmed with a pin. Upon request on Instagram, the first step is to make reservations (book and pay for the next hairdresser appointment directly on Instagram) and purchase tickets (cinema tickets). That would be an extension of physical products to considerably more products.
An extension to further product categories is very obvious. Staging and promoting products is a central element of companies on Instagram. Especially through the visual language on Instagram, products are perceived in the feed and instead of just storing them or purchasing them on the company's website via Instagram Shopping, the shopping experience could be completely handled in the Instagram app.
Further product categories still open
The fashion and beauty industry certainly wouldn't mind. However, the question arises as to how customer data is collected and processed. Companies certainly have more options in their own shop. Be it the recommendation of further products or the segmentation of customers.
In its current form, Instagram shopping represents a break in the user experience. The marking of the products is very well implemented. But people need to leave the app to complete the purchase. Depending on the shop it works sometimes better and sometimes worse. If products could be purchased directly on Instagram, this fracture would no longer exist. This certainly doesn't work for all products, but especially in the beauty sector we could imagine Instagram Payments very well.
Brands and companies can direct their followers to websites via Stories, Instagram shopping, ads and their Instagram profile. If products could be purchased directly via Instagram Shopping, the need for a link is eliminated in some cases.
The user experience will improve, but companies would be even more closely tied to Instagram. Instagram generates visibility and Instagram handles sales.
Whether and when the extension of Instagram Shopping will be available in Germany is a completely different question. In addition to data protection, user acceptance will also play a major role.