Facebook piloting payments system


FacebookFacebook is working on a pilot system which could rival PayPal by allowing users to make mobile purchases using their log-in details.

The social networking site has confirmed plans to test the new service which would reportedly enable shoppers to buy online without entering their credit card details each time.

It is said to have partnered with a men's shopping site for the pilot.

The social media giant could find itself pitted against PayPal if the testing phase proves successful.
A Facebook spokesman said: "We are working on a payment test".

The site would not expand on its plans but it is said to be focused on improving the mobile checkout experience.

According to tech website All Things D, the service would still allow companies partnering with Facebook to work with their chosen payment processors.

"If eventually expanded to more partners, the product would also potentially give Facebook keen insight into the shopping habits and preferences of the company's users, a lucrative set of data for the world's largest social network to gather," All Things D concluded.

The social networking site has already promised a shift away from its "Credits" system to introduce local currency payments - expected by September 12.

This aims to simplify the purchase experience for users and make it easier for developers to price virtual goods for a global audience.

"Since we introduced Credits in 2009, most games on Facebook have implemented their own virtual currencies, reducing the need for a platform-wide virtual currency, " the site said when it introduced that system.

"As a result, we are updating Facebook Payments to support pricing in local currency instead of Credits."

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