Instagram announced that they will rolling out a way for users on the platform to fundraise. This could be for a personal cause, for someone they may know going through a difficult time, a small business or any number of initiatives. The reasons behind this decision seem to be the coronavirus and social movements that have been a feature this year:
“Since January, people have raised more than US$ 100 million for COVID-19 fundraisers globally across Instagram and Facebook. In the last 30 days, donations on Instagram have doubled in the US. We’ve also seen a large wave of digital activism responding to the global conversation around racial justice. From people raising money to buy medical equipment for Black Lives Matter protesters, rebuilding Black-owned small businesses affected by COVID-19 and funding educational resources related to racial justice, people are eager to mobilize around causes they care about.”Instagram
The initial rollout of this feature is currently available only in the United Kingdom, United States and Ireland. If this test bed works out it, Instagram will surely expand this services to other areas.
This will see Instagram compete with companies like GoFundMe, Indiegogo, Patreon and Kickstarter. The service works similarly to the traditional fundraising sites.
Requirements to start an Instagram fundraiser:
- The person starting the fundraiser has to be 18 years or older
- They live in the areas where the feature is available
- They have a valid payment method Mastercard, Visa, Discover, American Express and Paypal (for the United States only)
- The donations made need to be in a currency supportes by Instagram’s payment partner Stripe
Users wanting to donate will be able to do so through the donation sticker.
Even though this has a limited roll out it’s an interesting approach from Instagram. Integrating this in their application will surely make even more users come to the platform. They will provide even more competition for other social media sites.