Friday, August 16, 2013

Facebook testing mobile payments for goods.

According to ALLTHINGSD, Facebook has confirmed testing a new mobile payment option for shoppers.

To me, this will become a monster add on for Facebook. They will start taking on the finance district of the internet. Folks like Paypal better keep a close eye on this move.

Here is an excerpt from the allthingsd article.

Thrillist-owned JackThreads, a flash-sale shopping site for young men, is the pilot partner. The company has a strong relationship with Facebook, sees a good chunk of revenue come through mobile phone purchases and may also have a decent demographic overlap with one particular segment of Facebook users — gamers — who would have provided the social network with credit card information. It will be interesting to see if Fab, another close partner of Facebook’s that does well on mobile devices, will follow suit.
The new product, if launched widely beyond its current small testing phase, would undoubtedly pit Facebook against digital payments giant PayPal on mobile devices. It would also compete with offerings from Google, Amazon and a host of startups such as Braintree, Stripe and Klarna, all up-and-coming outfits that are working, in one way or another, to make it easier to make purchases on mobile phones. All of these companies, including Facebook, recognize that it can be challenging to easily enter your payment details on small devices.

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