Why Shopify Stock hit a new all-time high today

What happened

Actions of Shopify (NYSE: SHOP) climbed 6.5% to a record closing high of $ 1,432.99 on Tuesday after the online retail platform announced it would bring its fast-payment system to Facebook (NASDAQ: FB) and Instagram.

So what

Shopify will roll out its Shop Pay service to all of its merchants who sell their products on Facebook and Instagram in the coming weeks. Consumers will be able to use Shop Pay as a payment option, such as Pay Pal, by browsing popular social media sites.

By pre-populating buyers’ billing and shipping information, Shopify claims their payment system can be up to 70% faster than competing platforms. These speed and security benefits, in turn, tend to increase the sales conversion rates of its merchants.

“People are embracing social platforms not only for connection, but also for commerce,” store general manager Carl Rivera said in a press release. “Making Shop Pay available outside of Shopify for the first time means more shoppers can use the fastest, best payment on the internet.”

Now what

Over 1.8 billion people use Facebook every day. Increasingly, users of the social media giant are purchasing products while browsing the mobile sites of Facebook and Instagram. Shopify’s faster and more secure payment service is expected to accelerate this trend. The more goods people buy on Facebook through Shopify’s payment platform, the more profit both companies can make.