Financial services company Square said it was partnering with TikTok to make it easier for users to buy and sell products on the short-form video platform.
The new integration, called Square x TikTok, lets sellers with a business account send their fans directly from TikTok videos, ads, and shopping tabs to their Square Online store.
“We are constantly working to help sellers expand their online presence and reach new customers,” said David Rusenko, head of eCommerce at Square (ticker:SQ). “Online sales have long been a significant revenue driver for merchants and will only continue to become more vital. We’re looking forward to helping our sellers tap into a valuable, rapidly expanding new customer base on TikTok.”
With nearly 50% of TikTok’s one billion active users saying they have purchased something after seeing it advertised on the app, the partnership presents a significant growth opportunity for Square’s (SQ) online store division. A standard Square Online store account charges sellers a 2.9% processing rate, plus 30 cents, per transaction.
The announcement coincides with TikTok’s unveiling of an expansive digital marketing initiative called TikTok World that seeks to serve as a one-stop-shop for digital marketing solutions on the platform.
Sellers can apply for the beta version of Square x TikTok, which will be rolled out en masse shortly.
The announcement was overshadowed on a day that saw Square stock fall 5.8% Tuesday after MasterCard announced it was rolling out “buy now, pay later” services. Square agreed to buy BNPL company Afterpay for $29 billion in August. Shares of Square were also affected by rising bond yields, which tend to push down the prices of expensive growth stocks.