The
new payment product would allow people who have previously provided Facebook with
their card details to make purchases through associated apps just by entering
their Facebook login.
JackThreads,
a men’s fashion site, will be the pilot partner, according to the digital news website AllThingsD.
If
the system is rolled out across other apps, it could take on the online payment
giant PayPal, as well as providing Facebook with a detailed profile of its
users’ spending habits.
Sucharita
Malpuru, an analyst at Forrester Research, told AllThingsD: “It sounds like a
dead-on competitor of PayPal.”
But
PayPal said in a statement: “We have a great relationship with Facebook and
expect that to continue. Our customers love using PayPal on Facebook.
“We have been investing in mobile payments
since 2006, and last year 10 per cent 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.”
Some
analysts remained sceptical about whether users would entrust their card
details to the social networking site.
Users
may have entered card details when making in-house purchases on games such as
Farmville – which Facebook then stores – but it is not known how many credit
card numbers the web giant currently has on file.
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