Facebook plans to launch own payment system
16 August 2013
Facebook is testing a service which will allow its members to make mobile payments using their account.
The feature will use Facebook account for a more streamlined mobile checkout experience. However, businesses that implement it will still be able to use the services of a third-party payment processor like PayPal.
The new feature extends the capability of Facebook’s “single sign-on”, which allows website and developers to ask for Facebook credentials, rather than forcing users go through a separate registration process.
Facebook is currently testing the concept in partnership with JackThreads, the men’s online fashion store which makes a lot of business through its mobile app.
At the moment, the majority of people who have added financial details to their Facebook profile are gamers who purchase additional extras that give an advantage or raise their social status.
Another group of users are those that have been shopping for gifts for themselves and friends. Since the beginning of 2013, the social network has operated its own ‘Gifts’ shop which sells little items like jewelry, chocolate and flower baskets.
Facebook’s revenue from payments and other fees stood at $214 million in the second quarter of 2013. In comparison, Facebook’s revenue from advertising during the same period totaled $1.6 billion (£1bn).
In future, the social network’s huge member base could enable it to compete with PayPal, Google Wallet and hundreds of other ways to pay for goods and services using a smartphone.
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