Update:Facebook’s new payments test isn’t a PayPal competitor, it’s a companion that fills in your billing info automatically. AllThingsD today broke the news that Facebook was testing a new payments feature for third-party apps, but misframed it as a PayPal competitor and lacked details of how it actually works.
The test lets users fill in their credit card and billing info when making payments through third-party mobile apps. Facebook pulls the information from data on file for users who’ve purchased Facebook Gifts or made in-game purchases on Facebook. After granting permission, filling in the info takes only a few clicks, rather than arduous mobile typing.
Facebook is not becoming a payments processor here and therefore can’t replace PayPal. Payments made via this test still go through an ecommerce app’s regular payment processor, such as PayPal, Braintree, or Stripe, and they still earn their fee.
Facebook instead benefits by…
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