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Instagram Wants to Ease Its Users into Shopping

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For a week in May, some of Instagram’s designers, engineers and product managers met not at the company’s Menlo Park, California, headquarters but at a rented house, stocked with grocery store snacks. There, away from computers and armed with pencil and paper, they explored a question important for the photo-sharing app’s future: how do we get our users to shop?

In particular, they wanted to figure out how to introduce shopping tools without making them so obvious that they would transform the app into a splashy catalog. Together they came up with 150 ideas. After an extensive process of elimination, the team settled on the design being unveiled this week: letting brands tag products in their photos, the way users tag their friends. Tap on the tagging descriptions to get more information, tap again to buy on the retailer’s site.

It’s the first test from Facebook Inc.’s Instagram to kick off a broader strategy for helping people pick out and buy things, according to James Quarles, Instagram’s vice president of monetization. The team will gather data from users’ behavior to figure out what to do next. Maybe they’ll add a way to comparison shop, a way to search for products elsewhere on the app or even a Pinterest-like feature to save posts that inspire, he said.

“We are so well-positioned in this space,” Quarles said. “Instagram is super visual, we have a well-defined graph of your interests based on what you’re following, and the serendipity of discovery happens every day through the ad products and who you follow.”

People have long been shopping on Instagram without a formal way to buy things. A crop of influencers on the photo app push fashions into popularity. Company researchers have noticed that users take screenshots of products they love, or direct-message them to themselves. But, like the design team’s caution suggests, making shopping an actual app feature is a risky proposition.

The main problem: shopping hasn’t worked well in social media. Facebook’s history is peppered with discontinued e-commerce products, like birthday gifts for friends and “Facebook credits,” which was a virtual currency for social games. The company recently introduced a Marketplace product that allows people to buy and sell to each other, but its launch was quickly marred when users started posting ads for drugs, sex and exotic animals.

Twitter tested a “buy button” for more than a year, but the project faded and the head of e-commerce departed. Pinterest made a bigger investment in shopping, allowing direct buying on its site from thousands of retailers, but it’s still unclear how popular the tool is with consumers.

Quarles said Instagram aims to learn from all these experiences—especially from its parent company, Facebook, which has shared its notes.

Instagram already lets retailers promote products in ads, but the shopping update would apply to regular posts, making it a more natural experience for users. The app’s e-commerce ambitions are large—including international expansion and a video version of the product—but they’re starting small.

It’s testing its new feature with just 20 brands, including Kate Spade and Warby Parker, and not taking any cut of the proceeds.

For J. Crew, which is one of the test brands, Instagram’s product fills a gap in mobile shopping. For one, it’s image-based, which makes it much more amenable to inspiring people to buy products than Facebook, according to Jenna Lyons, J. Crew’s president and creative director. It has the opportunity to take a customer from the point they’re interested in a product to actually making a purchase. It’s happening in the real world already, she said.

“It’s been a little frustrating to us in the past to not be able to have people purchase on Instagram,” Lyons said. “Not only has it become a place for people to get influenced by their friends, but they’re walking into our stores with their phones and saying, ‘do you have this?'”

She is hoping the test will show that Instagram’s method is subtle enough to not turn people away, but powerful enough to drive people to J. Crew’s site.

“I really hope it works,” Lyons said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Telecommunications

Lagos Residents Frustrated by Rapid Data Drain, Call for NCC Action

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Telecommunications - Investors King

Lagos residents are expressing increasing frustration over what they describe as the rapid depletion of their data bundles.

Many subscribers are now calling on the Nigerian Communications Commission (NCC) to address their concerns as they suspect changes in billing practices by telecommunication providers.

Numerous subscribers have reported that their data does not last as long as it used to. A Lagos-based teacher, Mrs. Nafidah Zaynab, shared her experience, stating that a N2,000 data bundle, which previously lasted almost a month, now depletes within just a few days.

This sentiment is echoed by many, including Idowu Anabili, a trader who has reduced his data usage due to rising costs.

Abdullahi Yunus, who runs a café, noted a significant increase in his data expenses, spending between N70,000 and N100,000 monthly, up from N30,000. He attributes this spike to faster data consumption.

Telecom operators deny any wrongdoing, attributing the faster data consumption to increased usage by subscribers.

An anonymous official from MTN explained that the variety of activities performed on smartphones has increased, leading to faster data usage.

Airtel Nigeria’s spokesperson, Mr. Femi Adeniran, suggested that background apps and high-definition streaming contribute to the issue.

Despite complaints, operators assert they have not officially increased data prices. They emphasize that automatic app updates and other technical factors may be responsible for the perceived quick depletion.

Experts suggest that the challenging economic climate may be pressuring telecom companies to subtly reduce data value.

The industry has reported a 43% rise in operational costs, although no formal tariff hikes have been announced.

The NCC has clarified that it has not authorized any increase in data tariffs. The commission highlights technical factors like automatic video play and app updates as potential causes for quick data depletion.

In a bid to assist consumers, the NCC has advised turning on data saver modes and managing app updates to conserve data.

To combat the issue, Mobile Network Operators (MNOs) have initiated a campaign to educate consumers on optimizing their data usage.

They recommend practices such as disabling automatic updates and closing unused apps.

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Social Media

Meta Shuts Down 63,000 Nigerian Accounts in Sextortion Crackdown

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In a significant move to combat online crime, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has removed 63,000 accounts in Nigeria linked to sextortion scams.

This sweeping action is part of Meta’s ongoing effort to address the growing threat of digital extortion on its platforms.

Unmasking the Scammers

The crackdown, which took place at the end of May, targeted accounts engaged in blackmail schemes.

These scammers posed as young women to coerce individuals into sharing intimate photos, which were then used to extort money from the victims.

The removal follows a Bloomberg Businessweek exposé highlighting the rise of such crimes, particularly affecting teenagers in the United States.

The Global Impact

The U.S. Federal Bureau of Investigation (FBI) has identified sextortion as one of the fastest-growing crimes targeting minors.

The schemes often lead to severe consequences, including the tragic suicides of more than two dozen teens.

In one high-profile case, the death of 17-year-old Jordan DeMay in Michigan led to the arrest of suspects traced back to Lagos, Nigeria.

The Role of the Yahoo Boys

Many of the dismantled accounts were linked to the “Yahoo Boys,” a notorious group known for orchestrating various online scams.

These individuals have been using social media to recruit and train new scammers, sharing blackmail scripts and fake account guides.

Meta’s Response

Meta’s spokesperson emphasized the company’s commitment to user safety, stating, “Financial sextortion is a horrific crime that can have devastating consequences.”

The company is continually improving its defenses and has reported offenders targeting minors to the National Center for Missing & Exploited Children.

To enhance protection, Meta has implemented stricter messaging settings for teen accounts and safety notices regarding sextortion.

They are also employing technology to blur potentially harmful images shared with minors.

Ongoing Efforts

Meta’s actions highlight the complex and evolving nature of online crime. The company has pledged to remain vigilant, adapting its strategies to counter new threats as they emerge.

“This is an adversarial space where criminals evolve to evade our defenses,” Meta noted.

Looking Forward

As digital platforms continue to grapple with issues of privacy and security, Meta’s recent actions demonstrate a proactive stance in safeguarding users.

By dismantling these networks, the company aims to reduce the prevalence of sextortion and foster a safer online environment for all.

The crackdown serves as a reminder of the need for continued vigilance and collaboration between tech companies and law enforcement to protect individuals from the harmful effects of digital exploitation.

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Fintech

Flutterwave Celebrates Inclusion in CNBC’s Top 250 Global Fintechs

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Flutterwave has been recognized as one of the Top 250 Fintech companies globally by CNBC and Statista.

Joining the ranks of industry giants like Ali Pay, Klarna, Piggyvest, and Mastercard, this accolade underscores Flutterwave’s impact on the financial technology sector.

This honor follows Flutterwave’s recent inclusion in Fast Company’s Most Innovative Companies list, highlighting the company’s pivotal role in transforming Africa’s payment landscape.

The recognition is a testament to Flutterwave’s dedication to innovation and excellence in providing seamless payment solutions across the continent.

Expressing gratitude, Flutterwave acknowledged its talented team, supportive board, reliable partners, and loyal customers for contributing to this success.

The company continues to drive progress in the fintech industry, reinforcing its commitment to enhancing financial accessibility and inclusion in Africa and beyond.

Flutterwave’s recognition on these prestigious lists marks a proud moment and a significant milestone in its journey, reflecting the company’s growing influence and leadership in the global fintech arena.

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