Facebook Inc (NASDAQ:FB) Mobile Payment Service-Competitor To PayPal

Denver, CO, 08/16/2013 (Avauncer.com) – Facebook Inc (NASDAQ:FB) closed at $36.56 in the previous trading session after going down by $0.09 (or -0.25%). The stock has hit day’s high at $37.07 and day’s low at $36.02.

To make it easier for customers to purchase products and services, through its partners of e-commerce mobile apps, the company, Facebook is planning to test its own payment service. Based on information from sources that keep knowledge about the issue, Mike Isaac and Jason Del Rey of AllThingsD generated this report.

The payment service of this giant social network will allow users to make their purchases through their Facebook login information. The users need not give their billing information on the mobile apps. However, they should have previously bought something and should have provided their credit card details to Facebook.

As per the report, the company is currently testing this new payment service and has scheduled to launch it next month. Online shopping club for young men, JackThreads, which is owned by Thrillist is social network giant’s pilot partner. Facebook has about 101 million active mobile users daily; therefore, if its new payment service is expanded from its small testing phase, it will become a strong competitor against the digital payment service of eBay, PayPal.

“Creating a better mobile checkout experience” is the new goal of Facebook at present. The responsibility of its payment processors is given to its e-commerce partners. The social network giant handles payments for in-app game purchases and for its Gift products and then accepts payments from customers using their credit cards.

On the other hand, PayPal’s spokesperson said the company has a good relationship with Facebook and it welcomes competition. He emphasized on the fact that PayPal since 2006, has been investing in mobile payments and last year, and 10% of its payment volume came from mobile devices.