Shopify Falls as Instagram Checkout to Create Payments Pinch
- Instagram Checkout ‘circumvents’ Shopify platform, RBC says
- Kylie Cosmetics is one of first merchants to use new service
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Shopify Inc., the online platform for merchants, fell the most in two weeks after RBC said the company could be hurt by Facebook Inc.’s launch of Instagram Checkout, which allows consumers to pay for items without leaving the social platform.
The new Instagram service could take market share from Ottawa-based Shopify, RBC analyst Ross MacMillan said. That’s because currently, merchants can link to their Shopify channel on Instagram, which brings customers to the site and generates payments revenue.