This is a fun project. I bought some doilies at a craft store for $1.99. They are in the cake decorating area and they come in rectangles or circles. I took one and mounted it with double stick tape to a black piece of foamcore. I photographed and then made sure the black-and-white contrast was good for selection.
Double click the background layer to make it editable as Layer 0.. select the black with the magic wand and Edit > Cut. This will leave transparent area. Then I did a Rectangle selection in the center and cut those pixels too.
I opened the Lotus image and dragged it into the lace file. You can then resize with Ctrl/Cmd T if needed. make sure none of the photo shows through the lace.
Flattened the image and dragged it into a 5×7 new file. You can make the background any color you want to show through the lace. I plan to print this on Red River Paper card stock so used a 7×10 card stock that will be folded. A nice touch to add your photo title and information on the back of the card as shown.