Facebook testing a PayPal killer to simplify mobile payments

Social network users could type in their login details to
make on-the-go payments

Facebook is set to take on digital payment giant PayPal with its own payments product, according to sources familiar with the social networking site's plans.

The product would allow internet users to make purchases on mobile apps with their Facebook login information. 

Any user who has previously provided the website with their credit card details would be able to make purchases on partnering e-commerce mobile apps without entering any billing information, tech news site AllThingsD reports.

Facebook confirmed it is in the process of preparing a testing phase for the product.

If successfully launched, the product would pose a direct challenge to PayPal on mobile devices and would also compete with similar products from Google, Amazon and smaller startups such as Braintree.

For now Facebook's test is only focused on making it easier for people to shop on their mobiles but if the product becomes available on enough partner shopping sites it could give the social network lucrative data about its users shopping habits.

“We have a great relationship with Facebook and expect that to continue. Our customers love using PayPal on Facebook,” a PayPal spokesperson said in a statement to the news site.

“We’ve been investing in mobile payments since 2006, and last year 10 percent 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.” 

Millions of people already spend money through the Facebook, particularly users of popular in-site games like FarmVille.

Facebook testing a PayPal killer to simplify mobile paymentsFacebook's current revenue from payments and other fees is reported to have totalled $214m, or £137.7, in the second quarter of the year, a fraction of the company's billion dollar core advertising business.

Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Technical Support Analyst

    £20000 - £23000 per annum: Recruitment Genius: This Managed IT Services Provid...

    Recruitment Genius: 1st / 2nd Line IT Support Engineer

    £20000 - £28000 per annum: Recruitment Genius: This specialist high tech compa...

    Recruitment Genius: Web Designer / Developer

    £12000 - £16000 per annum: Recruitment Genius: New Full-time, Part-time and Fr...

    Recruitment Genius: Creative Web and UI Designer

    £30000 - £35000 per annum: Recruitment Genius: An experienced creative web and...

    Day In a Page

    Sepp Blatter resignation: The beginning of Fifa's long road to reform?

    Does Blatter's departure mean Fifa will automatically clean up its act?

    Don't bet on it, says Tom Peck
    Charles Kennedy: The baby of the House who grew into a Lib Dem giant

    The baby of the House who grew into a Lib Dem giant

    Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
    Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

    The harrowing testament of a five-year-old victim of Syria's endless civil war

    Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
    The future of songwriting: How streaming is changing everything we know about making music

    The future of songwriting

    How streaming is changing everything we know about making music
    William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

    Recognition at last

    Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
    Beating obesity: The new pacemaker which helps over-eaters

    Beating obesity

    The new pacemaker which helps over-eaters
    9 best women's festival waterproofs

    Ready for rain: 9 best women's festival waterproofs

    These are the macs to keep your denim dry and your hair frizz-free(ish)
    Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

    Wiggins worried

    Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
    On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

    On your feet!

    Spending half the day standing 'reduces risk of heart attacks and cancer'
    Liverpool close in on Milner signing

    Liverpool close in on Milner signing

    Reds baulk at Christian Benteke £32.5m release clause
    With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

    The big NHS question

    Why are there so few new GPs when so many want to study medicine?
    Big knickers are back: Thongs ain't what they used to be

    Thongs ain't what they used to be

    Big knickers are back
    Thurston Moore interview

    Thurston Moore interview

    On living in London, Sonic Youth and musical memoirs
    In full bloom

    In full bloom

    Floral print womenswear
    From leading man to Elephant Man, Bradley Cooper is terrific

    From leading man to Elephant Man

    Bradley Cooper is terrific