HomeInternetFacebook eyes mobile payments, not going to take on PayPal though

Facebook eyes mobile payments, not going to take on PayPal though

Facebook is getting ready to test a mobile payment system which will simplify the checkout experience. How? Say you’ve previously given the SNS your credit card details while playing a game or sending a Gift to a pal. eShopping through one of the social network’s partners via mobile apps would merely require your Facebook login, saving you the trouble of adding in billing details. There’s one problem though.

How many people would unhesitatingly submit their credit card information to Facebook? One of our reporters had his account hacked less than a week ago. So we know we wouldn’t, not yet at least. On the other hand, it appears as if enough users are willingly supplying the said data. Why else would the social networking giant deign to tackle the mobile checkout experience? One argument is that the service has the potential to let the company gather details on what members buy online.

Facebook Payments

These records should be good for brands which advertise on the SNS, especially if the purchase was made when a customer clicked on an ad they saw when signed in to their account. Although the product has given rise to speculations about a PayPal rival in the making, it’s not the case currently. AllThingsD who broke the news received clarification from Facebook that the service will not deal with payment processing.

It will only deliver the information needed to start the payment process through PayPal or a similar service. This should mitigate the problem of having to type in billing information using an inconveniently small mobile device’s screen. JackThreads, an online shopping destination for men, has partnered with Facebook to kick off the test program.

Well, it will be interesting to see if this venture goes the Credits way or not. Testing starts next month.