Mobile, News

Facebook to test mobile payment service – a threat to PayPal ?

Facebook-online-paymentsSoon users who will provide Facebook with their credit/debit card information can make purchases on third party mobile apps without having a need to enter billing information again and again. As the social network giant is gearing up to test a new service which will allow its users to make purchases on mobile apps with their Facebook login information. All one needs to do – as soon as the service launches – is simply enter his/her login credentials and get going.

Though the service is still due to undergo a testing phase, as reported by several media publications. Also there is no set date released by the company or any of the publications, about when the product will be available for users.

Several medias including Allthingsd reports, that if Facebook manages to launch this new project it would pose a direct challenge to PayPal. However, Techcrunch reports that the feature won’t work as a competitor to PayPal but rather work as a companion to it. As Facebook doesn’t actually process these mobile app payments, it can’t be used as a replacement for PayPal.

The whole idea behind this product would be to cut the process of entering billing information each time a user undergoes a transaction.

As of now, one has to type in his/her credit card and billing address information each time there is a payment restriction on Facebook, but once this solution gets rolled out – users would only have to click a button or two. The following backend payment process would remain pretty much the same.

So for now, Facebook’s test is, primarily focused on putting a top layer to its payment process for a better user experience, rather than getting involved in payment processing.  However, if Facebook introduces its own payment solution to the service then it would not be wrong at all to count world’s leading social network as a competitor to PayPal.

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