jeff juwana
Moderator
The world’s largest social networking company, Facebook is planning to test a new mobile payment feature. According to BBC reports, the feature will use payment details added by users to their Facebook account to automatically fill in forms when they make purchases on mobile applications.
Tera Randall, Facebook spokeswoman said, “This product is simply to test how we can help our app partners provide a simpler commerce experience,”
With over a billion members, Facebook has attracted advertisers, who are keen on tapping into the pool of potential customers. According to its latest earnings report, it generated advertising revenue of $1.6bn (£1bn) in the April to June quarter this year.
“Facebook does not want to remain just a platform for brand promotion and lead generation, but it wants to become the place where ecommerce deals actually happen,” Manoj Menon, managing director of consulting firm Frost & Sullivan told the BBC.
“This feature will help them demonstrate to the advertisers the effectiveness of its platform in driving revenue. It is a fantastic move by Facebook,” he added.
However, some analysts were sceptical if users would trust a social networking site with their financial information.
“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,’ said Denee Carrington, an analyst with Forrester Research.
Tera Randall, Facebook spokeswoman said, “This product is simply to test how we can help our app partners provide a simpler commerce experience,”
With over a billion members, Facebook has attracted advertisers, who are keen on tapping into the pool of potential customers. According to its latest earnings report, it generated advertising revenue of $1.6bn (£1bn) in the April to June quarter this year.
“Facebook does not want to remain just a platform for brand promotion and lead generation, but it wants to become the place where ecommerce deals actually happen,” Manoj Menon, managing director of consulting firm Frost & Sullivan told the BBC.
“This feature will help them demonstrate to the advertisers the effectiveness of its platform in driving revenue. It is a fantastic move by Facebook,” he added.
However, some analysts were sceptical if users would trust a social networking site with their financial information.
“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,’ said Denee Carrington, an analyst with Forrester Research.
