Facebook are currently testing a PayPal alternative

FacebookFacebook has announced that they will be testing out a new mobile payment service that could act as a potential alternative to financial banking system PayPal.

Mobile payment platforms are all the rage at the moment, and that is a trend that won’t be going anywhere. People conduct a fair amount of business from their smartphones these days, and an increasing number of people are forgoing computers completely in favor of this more portable option.

With demand increasing for a stable mobile payment system for any purchase necessary, Facebook has decided to throw their hat in the ring.

Over the next month they will be conducting limited tests on their own mobile payment platform. It allows you to store credit cards in their database and make purchases directly from your account. Things that could  be bought include their gifts feature, in-game app purchases, and ad revenue/promotion for Facebook pages. It would include one-click purchases.

This move is being conducted with a partner, JackThreads.

Could this be a sign that Facebook is trying to distance itself from PayPal? A spokesman for the financial company denied it.

“We have a great relationship with Facebook and expect that to continue. Our customers love using PayPal on Facebook. We’ve been investing in mobile payments since 2006, and last year, 10 percent of our total payment volume — $14 billion — was from mobile devices. However, we always welcome competition and are looking forward to seeing what Facebook will announce.”

You have to wonder how well this is going to work out for Facebook. While it is true that many people use paid services on the social network, I wouldn’t expect too many of them give their credit card over. I know that I have to pay for ads for a page I manage, and the only reason I trust it is because I use my PayPal account. I would never give such a privacy-challenged company my actual details.

That being said, I am more paranoid than the average user. I have seen people with open profiles public to the world list their mobile numbers in their account information. Not to mention how many “check-in” when they visit a local spot, offering a personalized guide for anyone who wants to stalk them.

Maybe the concept of a mobile payment platform on Facebook isn’t that outlandish, when you think about it. Do any of us really expect any privacy anymore?

Source: The Verge

Leave a Comment

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.