Social media and tech companies have been adding native payments into their apps for years, and nothing in the West has yet come to resemble WeChat's payments success. Venmo has the "texting money" behavior on lock, despite competing with a native feature of iOS. Banks are still in the growth mode for Zelle, a bank-pipe for messaging money. Facebook payments, and Amazon Pay, and the credit card networks' Buy Now button are all competing for our payments share of wallet (!) on the web.
So why do we think Instagram adding payments to its app is interesting? For the same reason that we think Snapchat adding a store can be compelling. Instagram is a way for many Millennials to consume brands and lifestyle. It is a platform of creators and influencers that broker fashion and retail. Platforms (like Amazon) are unlike individual products in that they can flex to include many different products and services once the use-case is proven. And influencer marketing, powered by propaganda bots, AI, and other growth hacking, is only becoming more important as a trend for generations that grew up on YouTube and eSports. This will become true in time for financial services companies.
The other side of this coin is Augmented Reality and AI. Using machine vision, Facebook / Instagram can extract products from images posted on its network. Through integrated native payments, Instagram can become the platform where commerce happens, rather than linking out to third party sites. On top of this, Facebook's Oculus Go is an upcoming $200 virtual-reality head set meant to bring VR to the masses. Building Instagram into VR and AR, similar to how Snapchat is experimenting with both the medium and its associated hardware, would allow the company to open up a new commerce category. If this category catches on, Facebook / Instagram will have a meaningful moat that even Google and Amazon cannot match, because it will have (1) the social graph that can drive commerce, (2) the AI talent to build real-time image and product recognition, and (3) the customer's device to interact with this platform.