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Facebook dabbling in mobile payments

Earlier this month Facebook revealed that 78 per cent of its users were mobile. Now Facebook has announced its planning to test a new mobile payment feature.

Pay 'n' go

The feature will let users make purchases via mobile apps, using payment details stored in their Facebook account to automatically complete checkout forms. The payments will still be processed by the app.

“This product is simply to test how we can help our app partners provide a simpler commerce experience,” Facebook's spokeswoman Tera Randall said in a statement.

Paypal threat

While Randall stressed that Facebook has a great relationship with PayPal, news of the announcement saw eBay Inc. stocks (which owns PayPal) decrease in value.

With the majority of Facebook's 1 billion users now mobile, becoming an e-commerce platform rather than just one for promotion and lead generation is potentially a very profitable move for Facebook.

Whether users trust Facebook with their credit card details is another matter. 

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