Dive Summary:
- Facebook has announced it is testing an experimental program allowing its users to store credit card information on the popular social media site. The information will be used to make payments when users purchase a product through one of the site’s partners.
- Facebook says it aspires to provide its users with "one-click access" for mobile checkouts but described the current project as "a very small test" and will not process actual payments, like Paypal or Google Checkout.
- "I think there is the potential to get excited about it too early, but we're still very much in the experimental phase,” says analyst Ken Sena with Evercore Partners.
EDITOR'S NOTE: TechCrunch has since reported that Facebook's payments test isn't meant to compete with PayPal. The test actually allows users to auto-fill their billing information when making a purchase through a third-party mobile app, using data already on file for Facebookers who have previously bought Facebook Gifts or in-game content.
From the article:
... Still, by wading into mobile payments, Facebook is tackling a hot but somewhat inscrutable space. Everyone seems to agree that customers don't want to type out a bunch of billing information on teeny phone screens, but creating a frictionless alternative has remained elusive. ...
