Facebook Simplifies Mobile Payments to Drive Payment Volumes
Facebook (NASDAQ:FB) has rolled out a new, simplified mobile payment flow which enables developers to use Facebook’s Payments API in their apps and accept payments easily through just a 2-step process, instead of the older 7-step tedious process. Under the new payment flow, users can easily pay for services, games and other purchases through their carrier, as all charges are added directly to their phone bill. The new payment flow is integrated with all top U.S. and U.K. carriers and also covers some 60 odd countries. [1]
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Facebook: The Future Mobile Payments Leader?
By simplifying its payment flow, Facebook could see an increase in mobile payment transactions as the drop-off rates decline. Given the massive reach of Facebook, it has a good chance of becoming one of the top mobile payment platforms, going forward. With carrier integrations and support for all the major platforms, it could easily generate a lot of revenue through Facebook Credits and Facebook Payments on the web and on mobile.
With Google and Apple trying to enter the space and Paypal and Square already having gained significant traction, it is definitely going to be an interesting fight in the coming times.
We currently have a $33 Trefis price estimate for Facebook, most of which is derived from advertising and virtual transactions businesses. It competes primarily with Google, Microsoft (NASDAQ:MSFT) and Yahoo (NYSE:YHOO) in the online advertising space.
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