Dive Brief:

• Payments tools company Square has hooked up with social media outlet TikTok so that TikTok users will have direct access to Square sellers' sites, as part of a bid to boost shopping and online sales, TikTok and Square announced on Tuesday.
• With the integration, Square sellers can bring in potential customers to their online store using TikTok videos, ads and shopping tabs on their profile. The tool will soon be available to all merchants on Square, connecting them to TikTok fans, the companies said in a joint release.
• Square sellers using the feature can run ads via a TikTok ads manager and add their product catalog to TikTok to include them within their curated shopping tabs. The tool also lets Square sellers include product links within content to direct shoppers to Square's online market, the press release said.

Dive Insight:

Now that TikTok boasts one billion monthly active users, the platform is trying once more to connect brands and retailers with consumers who spend time on the app. In addition to collaborating with Square, TikTok has also teamed up with Shopify to create shoppable video ads and facilitate in-app shopping. In July, the popular social app announced plans to offer virtual workshops for small and mid-sized businesses.

"Our community loves discovering new businesses and products, and we can't wait to see more Square merchants showcase their creativity and make real connections with consumers on the platform," Melissa Yang, head of ecosystem partnerships at TikTok, said in a statement.

Besides its partnerships with Shopify and Square, TikTok has also teamed up with other companies to execute livestream shopping on the app. In August 2020, TikTok debuted its first livestream shopping collaboration with Ntwrk, a remote shopping platform aimed at Gen Z consumers. Walmart has tapped the social media app to run its first shoppable livestream in the U.S. in December 2020 and to host another shoppable livestream focusing on beauty products in March of this year. These partnerships follow in the footsteps of other brands and retailers that are experimenting with livestream shopping to reach younger consumers.

Aside from its collaboration with TikTok, Square partnered with another tech giant and introduced features for merchants on its platform. Google announced over the summer that it would integrate Square merchants into the Google Merchant Center to let them upload their product catalog into Google's search results, shopping tab, images and map features. Last year, Square unveiled Square for Retail on Square Register to allow merchants to manage their storefront, back office and online store tasks in one place. And in April, the platform added multiple inventory management features for retailers.

"We are constantly working to help sellers expand their online presence and reach new customers," David Rusenko, head of e-commerce at Square, said in a statement. "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."