Instagram adds checkout via PayPal's processing platform

The Instagram social media platform is testing a checkout feature powered through PayPal to provide users the option to purchase goods without leaving the app.

The Checkout with Instagram tests will take place in the U.S. with more than 20 brands involved, such as Nike, Adidas, Burberry and H&M.

Instagram apps
Facebook Inc.'s Instagram logo is displayed on the Instagram application on an Apple Inc. iPhone in this arranged photograph taken in Washington, D.C., U.S., on Friday, June 17, 2016. In a bid to give its users an incentive to create more content for the photo and video-sharing site, Facebook's Instagram is considering sharing revenue generated from news, sports, celebrities and other content said Carolyn Everson, vice president for global marketing solutions at Facebook. Photographer: Andrew Harrer/Bloomberg
Andrew Harrer/Bloomberg

The PayPal for Partners processing platform will handle the payments, allowing Instagram to manage the e-commerce site's buyers and sellers. In addition to credit card payments, PayPal will also be a payment option.

"Over the past few years, we've announced more than 40 partnerships with leaders across tech and financial industries to enable new experiences for customers and connect businesses and people with new platforms," PayPal's chief operating officer, Bill Ready, wrote in a Tuesday blog post announcing the new checkout feature.

After discovering a checkout-enabled product, shoppers will see the option to "Checkout on Instagram" to tap for additional details that would include providing billing and shipping details.

Shoppers will be able to use the Instagram app to view order status, estimated delivery time, and tracking number. In addition, they can cancel orders, initiate a return or request customer service support through the app.

After its testing period, Instagram will make the checkout option widely available, supporting e-commerce platforms such as Shopify, BigCommerce, ChannelAdvisor and CommerceHub, Engadget reported.

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