Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Facebook Payment: Set to Autofill Information

Facebook payment: Facebook Inc (NASDAQ:FB) has teamed up with app developers and payment processors, in an effort to improve online purchases. The partnership includes eBay Inc (NASDAQ:EBAY)’s Pay Pal, Braintree Payment Solutions and Stripe, to e-commerce sites JackThreads and Mosiac. By releasing its “Autofill With Facebook” option on Monday, the social network seeks to make online payment services faster and easier to use. Users will be able to autofill payment and shipping information through their Facebook profiles, saving them a great deal of time when making purchases.

Facebook Inc. (FB)

In August, reports emerged that indicated Facebook would be launching its own service, which would challenge PayPal directly. However, the company seems to have settled for a partnership. Collaboration with eBay, Braintree and Stripe will result in processing fees for the firms mentioned, whilst competition with Facebook will be avoided. The social networking behemoth expects consumers to make purchases more frequently, since their Autofill with Facebook service reduces the buying process to a single click.

Although it is not imminent, many anticipate that Facebook will be positioning itself to compete with the likes of PayPal in the future. Once enough credit card information has be gathered and customers secured, the social media giant could elaborate its own payment processing service. That way, the firm could be looking at  a larger cut from mobile purchases.

Despite this argument, critics believe Facebook will have a hard time convincing users to hand over credit card information. The company’s data privacy policy changes have been making headlines recently, with user information protection being the main source of controversy. Nevertheless, TechCrunch has indicated that when it comes to information security, “the social network has a relatively solid track record”.

Either way, Facebook will be dealing with a strong competition should it decide to introduce a separate payment processing service. PayPal is already negotiating the purchase of Braintree, a company responsible for processing $10 billion in mobile payments annually.

As consumers replace PCs with a mobile phones for their computing needs, mobile payments rise at an accelerated pace. Research by Gartner suggests a 31% increase in mobile payments this year, compounding a $253.4 billion market, which is expected to triple in volume by 2017. Facebook is keen on taking home a piece of the pie and for now, the collaboration with well trusted services such as PayPal is considered the safest way to do so. Check back here for more updates on Facebook payment information.

Disclosure: Pablo Erbar holds no position in any stocks mentioned

Recommended Reading:

Will Facebook and Twitter in China Kill Renren and Weibo?

Facebook Inc (FB) Wants Video Ads

Facebook Inc (FB), LinkedIn Corp (LNKD): Why This IPO Will Be a #Buy

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.