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: Facebook says 'simple' app used by 100 million

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

Yahoo sees signs of growth in 'core' (Update)

7 hours ago

Yahoo reported a stronger-than-expected first-quarter profit Tuesday, results hailed by chief executive Marissa Mayer as showing growth in the Web giant's "core" business.

Intel reports lower 1Q net income, higher revenue

7 hours ago

Intel's earnings fell in the first three months of the year amid a continued slump in the worldwide PC market, but revenue grew slightly because of solid demand for tablet processors and its data center services.

Twitter buys data analytics partner Gnip

10 hours ago

Twitter says it has bought its data partner Gnip, which provides analysis of the more than 500 million tweets its users share each day—to advertisers, academic institutions, politicians and other customers.

Zebra to spend $3.45B on Motorola business

14 hours ago

Zebra Technologies is spending more than $3 billion to buy the enterprise business of Motorola Solutions in a considerable expansion that is both technological and geographical.

Relativity's last-minute bid for Maker rebuffed

19 hours ago

Relativity Media, a film financier and movie distributor, was rebuffed in a last-minute bid for Maker Studios, the YouTube video creator that had agreed to be bought by The Walt Disney Co. last month.

User comments : 0

More news stories

Intel reports lower 1Q net income, higher revenue

Intel's earnings fell in the first three months of the year amid a continued slump in the worldwide PC market, but revenue grew slightly because of solid demand for tablet processors and its data center services.

Low Vitamin D may not be a culprit in menopause symptoms

A new study from the Women's Health Initiative (WHI) shows no significant connection between vitamin D levels and menopause symptoms. The study was published online today in Menopause, the journal of The North American Menopa ...

Astronomers: 'Tilt-a-worlds' could harbor life

A fluctuating tilt in a planet's orbit does not preclude the possibility of life, according to new research by astronomers at the University of Washington, Utah's Weber State University and NASA. In fact, ...