Meta has been trying to turn payments into a vehicle for growth for at least six years with the launch of its live shopping feature. But, so far, these strategies have come and gone without much of a splash. Live shopping shut down in 2022, for example, as did the company’s cryptocurrency effort named Libra/Diem. 

But the tables might finally be turning in Meta’s favor. 

According to analysts from Mizuho Securities, a tie-up with Amazon could help contribute to a 20% YoY revenue growth for Meta. “We believe the in-app purchase integration with the largest ecommerce company globally could represent the tipping point of transforming social media into a transaction platform,” the analysts wrote.

The strategy, known as Facebook Shops, has ramped up to an annual run rate of $2B, and, at this juncture, is only available in the United States. To Mizuho, the success of the program after just being in one country, coupled with the potential for Facebook Shops to turn social media into “a commerce engine,” will set this new strategy up for success where other ones have failed. 

The partnership with Amazon is a keystone to this strategy. Amazon has arguably dominated e-commerce and has established an efficient—if ruthless—operational machine. Through a one-click checkout integration, users can order Amazon-fulfilled products within Facebook’s interface, letting Amazon handle the backend of the e-commerce arrangement while leveraging Facebook’s front-end real estate for sales. 

But a few variables have yet to be set in stone. For one, Meta has yet to fully commercialize WhatsApp (which it owns) in line with this e-commerce- and payments-forward vision. With more than 2B users, the messaging app may represent another promising vehicle for growth. However, users may be turned off by the idea of commercialized messaging, given a preference for private communications, explaining Meta’s tepid rollout on this front. 

And regulators may still put major guardrails on this kind of partnership. What sort of antitrust implications arise when the world’s largest social media conglomerate partners with the world’s largest e-commerce company? How does it affect consumer and business wellbeing?