Facebook working on PayPal rival; eBay shares slide


Facebook (FB +0.4%) confirms to AllThingsD it's testing an online payments product. A launch is expected in the next month or so.

Sources state the product, set to compete against 800-lb. gorilla PayPal (EBAY -2.4%), will "allow online shoppers to make purchases on mobile apps using their Facebook login information," and (like PayPal) will allow them to avoid having to constantly re-enter their billing info.

However, for now, the test is focused on simply "creating a better mobile checkout experience," and doesn't tie in payment-processing (as PayPal does).

Facebook already handles payments for in-app game purchases and its Gifts product (among other things), and the enormous reach of its social sharing tools could allow it to quickly reel in many 3rd-party apps and (if it chooses to expand further) Web sites.

But PayPal has stared down competition from Internet giants before, and the network effects stemming from its 132M active users and many thousands of merchant partners make it a tough company to seriously disrupt. PayPal expects to handle $20B in mobile transactions this year, up from $14B last year.

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Comments (10)
  • Leftfield
    , contributor
    Comments (4058) | Send Message
     
    Paypal has grown on the backs of millions of captive Ebay sellers who are required to use the service on that site. Facebook, with it's vast numbers of users, has an opportunity to develop a more user-friendly and intuitive service that has been left open by the ham-handed management culture of Ebay that always grabs fees to the maximum extent possible and which has been featured on 60 Minutes for seizing customer accounts for ludicrous pretexts of "suspicious activity," failing to respond to facts and thus ruining their finances.
    15 Aug 2013, 10:15 AM Reply Like
  • futuretrade
    , contributor
    Comments (1142) | Send Message
     
    Looks like Facebook is loading up it's gun to go after all the tech giants.
    15 Aug 2013, 10:27 AM Reply Like
  • furner
    , contributor
    Comments (94) | Send Message
     
    How is it possible that anyone could be so stupid as to spend money on Facebook? If they can get money from these rubes, more power to them.
    15 Aug 2013, 10:46 AM Reply Like
  • GregScotts
    , contributor
    Comments (103) | Send Message
     
    Paypal is an awful, corrupt company and I hope it gets crushed to dust. There's no room for crap like Paypal in today's age.
    15 Aug 2013, 10:56 AM Reply Like
  • chopchop0
    , contributor
    Comments (5083) | Send Message
     
    FB will have to not only compete with Paypal, but also other services like Google wallet, Mastercard paypass and Visa's V.me service.
    15 Aug 2013, 11:05 AM Reply Like
  • futuretrade
    , contributor
    Comments (1142) | Send Message
     
    FACEBOOK-- "May the force be with you" Signed Rube
    15 Aug 2013, 11:08 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1239) | Send Message
     
    "The Future of Facebook is Mobile Payments"

     

    June, 2012

     

    http://bit.ly/16RWBHn

     

    Who was that masked man?
    15 Aug 2013, 11:37 AM Reply Like
  • Bouchart
    , contributor
    Comments (1081) | Send Message
     
    Does it make sense for a social media company to go into banking and payment type services? What advantages would Facebook have over established players, other than the brand?
    15 Aug 2013, 02:39 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    if google checkout failed, FB is even more likely to fail.

     

    It is not the reason for ebay share slide today
    15 Aug 2013, 03:49 PM Reply Like
  • CassandraSees
    , contributor
    Comments (595) | Send Message
     
    The whole market is slipping today - - This is not a day to judge an individual stock
    15 Aug 2013, 03:53 PM Reply Like
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