According to sources familiar with the situation, Facebook intends to create a product to enable users to make purchases on mobile devices – directly competing with PayPal.
The service, expected next month, would enable users who have supplied the social media giant with credit card information to make purchases without the hassle of entering billing information. Facebook would use information previously supplied from purchases such as gifts, games and more.
“We continue to have a great relationship with PayPal, and this product is simply to test how we can help our app partners provide a simpler commerce experience,” the company said in a statement to AllThingsD.com.
The company has partnered with men’s clothing site JackThreads as a pilot, seeing as a fair amount of revenue comes via mobile device purchases. Both companies enjoy a working relationship as JackThreads handles much of its advertising through the social media giant.
Facebook provides users with the option of utilizing PayPal or supplying credit card information for purchases, but how many users will trust solely the company with such critical information remains up in the air. The company does have a privacy policy devoted to payments, attempting to ensure such information is kept to the utmost confidentiality.
Photo Credit: Flickr user Rojer
