Facebook may be on the verge of
rolling out its own mobile payment
service to rival established e-
commerce players like PayPal.
1:11am UK, Friday 16 August 2013
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Facebook plans to test a new service
aimed at making it easier for users
to make purchases on their mobile
devices.
The social networking site is
exploring ways to allow people to
make purchases with just their
Facebook login on partnering e-
commerce mobile apps.
The service would use payment
information that shoppers store on
Facebook to automatically complete
checkout forms of certain apps.
The app would then handle the
payment processing, not Facebook.
Facebook confirmed in a statement
that it was working on a "very small
test" designed to "make it easier and
faster for people to make a purchase
in a mobile app by simply pre-
populating your payment
information".
But the company said there was no
timetable for making the service
available to its customers.
If rolled out, the new payment
system would pit Facebook in direct
competition with PayPal, as well as
e-commerce firms like Braintree.
News of the test hit PayPay's shares
Spokeswoman Tera Randall said in a
statement that Facebook has a
"great relationship with PayPal, and
this product is simply to test how we
can help our app partners provide a
more simple commerce experience".
The test, she added, would not
involve moving payment processing
"away from an app's current
payments provider, such as PayPal".
Nonetheless, shares of PayPal's
owner, eBay Inc fell on news of the
potential competition. The stock
closed down $1.05, or 1.9%, at
$53.18.
Facebook's stock closed down nine
cents at $36.56.
Forrester Research analyst Denee
Carrington believes Facebook will
face an uphill challenge in offering
mobile payments even though the
company has been building up its
database of users' credit cards.
"Consumers want safe, seamless and
convenient mobile payments and
there are a growing number of
competitors that consumers trust
more - such as PayPal, Visa (V.me)
and others," he said.Facebook may be on the verge of
rolling out its own mobile payment
service to rival established e-
commerce players like PayPal.
1:11am UK, Friday 16 August 2013
Tweet 136 Recommend 8 Email
Facebook plans to test a new service
aimed at making it easier for users
to make purchases on their mobile
devices.
The social networking site is
exploring ways to allow people to
make purchases with just their
Facebook login on partnering e-
commerce mobile apps.
The service would use payment
information that shoppers store on
Facebook to automatically complete
checkout forms of certain apps.
The app would then handle the
payment processing, not Facebook.
Facebook confirmed in a statement
that it was working on a "very small
test" designed to "make it easier and
faster for people to make a purchase
in a mobile app by simply pre-
populating your payment
information".
But the company said there was no
timetable for making the service
available to its customers.
If rolled out, the new payment
system would pit Facebook in direct
competition with PayPal, as well as
e-commerce firms like Braintree.
News of the test hit PayPay's shares
Spokeswoman Tera Randall said in a
statement that Facebook has a
"great relationship with PayPal, and
this product is simply to test how we
can help our app partners provide a
more simple commerce experience".
The test, she added, would not
involve moving payment processing
"away from an app's current
payments provider, such as PayPal".
Nonetheless, shares of PayPal's
owner, eBay Inc fell on news of the
potential competition. The stock
closed down $1.05, or 1.9%, at
$53.18.
Facebook's stock closed down nine
cents at $36.56.
Forrester Research analyst Denee
Carrington believes Facebook will
face an uphill challenge in offering
mobile payments even though the
company has been building up its
database of users' credit cards.
"Consumers want safe, seamless and
convenient mobile payments and
there are a growing number of
competitors that consumers trust
more - such as PayPal, Visa (V.me)
and others," he said.Facebook may be on the verge of
rolling out its own mobile payment
service to rival established e-
commerce players like PayPal.
1:11am UK, Friday 16 August 2013
Tweet 136 Recommend 8 Email
Facebook plans to test a new service
aimed at making it easier for users
to make purchases on their mobile
devices.
The social networking site is
exploring ways to allow people to
make purchases with just their
Facebook login on partnering e-
commerce mobile apps.
The service would use payment
information that shoppers store on
Facebook to automatically complete
checkout forms of certain apps.
The app would then handle the
payment processing, not Facebook.
Facebook confirmed in a statement
that it was working on a "very small
test" designed to "make it easier and
faster for people to make a purchase
in a mobile app by simply pre-
populating your payment
information".
But the company said there was no
timetable for making the service
available to its customers.
If rolled out, the new payment
system would pit Facebook in direct
competition with PayPal, as well as
e-commerce firms like Braintree.
News of the test hit PayPay's shares
Spokeswoman Tera Randall said in a
statement that Facebook has a
"great relationship with PayPal, and
this product is simply to test how we
can help our app partners provide a
more simple commerce experience".
The test, she added, would not
involve moving payment processing
"away from an app's current
payments provider, such as PayPal".
Nonetheless, shares of PayPal's
owner, eBay Inc fell on news of the
potential competition. The stock
closed down $1.05, or 1.9%, at
$53.18.
Facebook's stock closed down nine
cents at $36.56.
Forrester Research analyst Denee
Carrington believes Facebook will
face an uphill challenge in offering
mobile payments even though the
company has been building up its
database of users' credit cards.
"Consumers want safe, seamless and
convenient mobile payments and
there are a growing number of
competitors that consumers trust
more - such as PayPal, Visa (V.me)
and others," he said.