Facebook mobile payment system planned

Facebook mobile payment system being tested.

Facebook mobile payment system being tested.

Facebook has announced it is planning to experiment on a new mobile payment scheme. The Facebook mobile payment system would utilize payment details Facebook users have added to their account. The popular social networking site would then fill in payment forms automatically whenever they make purchases from a mobile app.

In a statement, a representative for Facebook said this upcoming mobile payment feature would not take the payment processing away from what the apps have been using, like PayPal.

Facebook mobile payment feature coming soon.

“This product is simply to test how we can help our app partners provide a simpler commerce experience,” Tera Randall added.

She also said that Facebook has a “great relationship” with PayPal, one of the biggest online payment service providers.

Being the largest social networking company, Faceboook has over a billion members who log into the site everyday, providing an opportunity for advertisers to tap into this vast consumer market. Facebook’s latest quarterly earnings report states that it generated $1.6 billion in advertising revenue.

In an interview with BBC, analysts said that a Facebook mobile payment system would help the company track how many Facebook users users actually purchased items from partner apps.

“Facebook does not want to remain just a platform for brand promotion and lead generation, but it wnats to beomc eone player where ecommerce deals actually happen,” Manoj Menon, managing director of Frost & Sullivan, said. “This feature will help them demonstrate to the advertisers the effectiveness of its platform in driving revenue. It is a fantatic move by Facebook.”

On the other hand, skeptics remain doubtful whether users would input its financial information on a social networking site

Source: BBC

Image source: 1000 Words, Annette Shaff/ Shutterstock.com

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