Instagram got a nametag feature released for some users and here is how you can use it

UPDATE: This feature is now available to everyone!

In the recent Instagram v60.0.0.0.27 I received a new nametag button to my profile page. It looks like a barcode scanner icon and it is located next to the archived posts icon on top.

Check this guide on how to join Instagram Alpha or Beta if you want to get new features earlier.

After clicking on that button you will pass through the several steps tutorial with feature usage tooltips. This tutorial also looks like a new approach for the Instagram app which comes from the Facebook app. Previously they were mostly showing new features via highlighted stories.

This tutorial says:

1/3: Friends can scan your nametag to follow you

Similar to the Snapchat's snapcode, you can scan photos / screenshots or real life screens with someone's nametag to see their profile page.
It makes it easier to share your nametags in other social media as images, so other people can just scan them to follow you.

2/3: Choose a nametag style above, then tap on your nametag to customize it

The button on top is a 3 states switch which is set to "color" by default.
You can choose between "color", "emoji" and "selfie" options.
This setting allows you to customize the background picture of your nametag.
By tapping on the middle of the screen you can choose between different colors, emojis or selfie stickers.
The set of colors is very limited 😕
You can choose any emoji you want and them will become repeated on the background
If you will make a selfie, it will be repeated in the background in the same way.

3/3: Tap here to scan a nametag, or press and hold on a nametag using the story camera

The button on the bottom will open the camera.
There will be a gallery button on the top right corner where you can open a photo or screenshot with a nametag to be scanned.
After scanning a valid nametag you will see a profile page. It will display a profile pic and profile name. It also looks like there is a place for profile description but in fact, it is empty.
Scanned profile page will have a "view profile" button. I would also add a follow button right there because it makes you click one more time to follow someone.

All nametag Instagram feature screenshots

I would expect your story feeds to be filled with many nametags very soon. It also opens a new opportunity for profile advertisement. Many people will start to recommend other people's profiles they follow. In the time back when snapchat introduced snapcodes feature, many communities became spammed with people's snapcodes causing a massive load on social media servers. Funny story but snapchat beta community in Google+ was deleted by Google because of that.

Issues

I also faced a couple of issues with this new feature. The process of sharing nametag to your story may stack and you will need to reopen the app. Additionally, the scanned nametag page looks a bit unfinished now. It misses a profile description field and a follow button.