Facebook is now aiming to make mobile payments simpler by testing a PayPal like mechanism which will enable simpler checkouts for its mobile users, a demographic which is increasing day by day. While this may pit Facebook against strong players like PayPal, Facebook has clarified that it is just interested in making mobile payments simpler and will allow small businesses to use the processing service of their choice.
Facebook has had commerce integrations before with its Gifts feature and Facebook coins but this new feature would allow users to make easier in-purchases in games and apps in addition to buying paid apps easily from the Facebook App Center. Some sources have told AllThingsD that the product will allow those users who have already shared their credit card information with Facebook will be able to use mobile payment apps without having to give out the credit card information. This will only happen with Partner e-commerce mobile apps.
The new service is being tested with a shopping site called JackThreads. Based on the result and some wider testing, Facebook will take a call on how best to push this product out to everyone. While it may seem to be a competitor to established payment products from PayPal, Google, Amazon and a host of other small payment startups. While making mobile payment simpler as a process for an end consumer is the need of the day, Facebook will also be able to reap the benefits from the data that this new product generates about customers. While Facebook already knows a lot about what you like when it comes to music, movies, food etc., this will add to that knowledge by actually adding purchase decisions to the mix. This will be used to enhance their ad targeting to drive sales for its advertisers.
However, one of the problems are that giving your financial information to a social network might not be the wisest thing to do, especially when it comes to a company which has had numerous privacy issues over the years, something that it cannot yet claim to have solved completely.
Would you give out your financial information to Facebook, assuming this feature comes to India? Share your thoughts with us.
Source | AllThingsD