Facebook to test mobile payments service (Update)

Aug 15, 2013

Facebook plans to test a mobile payments service that lets users make purchases inside mobile applications using payment information they have added to their account on the social network.

Facebook Inc. said Thursday that it is working on a "very small test" and the company says there is no set schedule for making the service available to users. The service would use payment information that shoppers store on Facebook to automatically complete checkout forms of certain mobile apps. Then, the app would process the purchase.

Spokeswoman Tera Randall said in an e-mailed 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, won't involve moving payment processing "away from an app's current payments provider, such as PayPal."

Nonetheless, shares of PayPal's owner, eBay Inc. declined on news of the potential competition. The stock closed down $1.05, or 1.9 percent, at $53.18.

Facebook's stock closed down 9 cents at $36.56.

Forrester Research analyst Denee Carrington thinks Facebook will face a 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," Carrington said in an e-mailed statement.

News of the test was reported earlier by AllThingsD.

Explore further: US market lifts global tablet sales: survey

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Facebook says 'simple' app used by 100 million

Jul 22, 2013

US social network giant Facebook said Monday it has surpassed 100 million users a month using an application designed for "simple" mobile phones widely used in developing nations.

PayPal to announce online shopping login service

Oct 12, 2011

(AP) -- PayPal, eBay's online payment service, plans to announce a new service Wednesday that aims to make it easier to shop online by cutting down on the number of accounts consumers have to create with various Web retailers.

Recommended for you

Lenovo wraps up purchase of Motorola phone unit

6 hours ago

Lenovo Group announced the completion of its acquisition of Motorola Mobility from Google Inc. on Thursday in a move aimed at making the Chinese computer maker a global smartphone brand.

Baidu profit up 27 percent as mobile grows

9 hours ago

Chinese search engine Baidu Inc. said Thursday its quarterly profit rose 27 percent as user traffic for its mobile operation surpassed passed its desktop computer-based search business.

Samsung vows changes after mobile profit plunges

10 hours ago

Samsung Electronics Co. admitted erring in its smartphone strategy and vowed Thursday to overhaul its handset lineup after profit from those devices tumbled last quarter to the lowest in more than three years.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.