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article imageFacebook making a push for mobile commerce

By Michael Essany     Aug 16, 2013 in Technology
Are consumers ready for Facebook as an online shopping destination? That's the burning billion-dollar question that social, retail, and marketing analysts are attempting to answer Friday,
Without any certainty as to the eventual outcome the world's largest social network will experience.
“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," Facebook told AllThingsD on Thursday, following reports that Mark Zuckerberg's company is developing a PayPal rival. "This test does not involve moving the payment processing away from an app’s current provider.”
This is promising news for investors, experts say, given the lack of trust the masses have with regard to security and privacy in the realm of social media.
“Nobody trusts social networks with their financial information, and they are certainly not going to trust Facebook,” says Sucharita Mulpuru, a retail analyst at Forrester Research. “Maybe they have a few million people that have bought something on things like FarmVille, but that does not a network make.”
According to North American Bancard, an online and mobile payment processing giant, success in ecommerce begins and ends with security.
Although NAB had no comment on Facebook's supposed plans, the leading provider of merchant credit card processing services has long extolled the virtues of online shopping security.
“A company that has been in business for many years is a good indicator that they have been conducting business in a reputable manner,” an entry on the North American Bancard blog reads.
According to NAB, customers that trust you will open their wallets to you time and time again.
And for now, Facebook just isn't there.
"This isn’t the first time Facebook has tried to position itself inside the e-commerce arena," AllThingsD reminds us. "The company launched its Credits initiative in mid-2009, essentially an attempt to create another form of virtual currency for users to purchase items via the Facebook platform. But the experiment was scrapped in the summer of last year, chalked up to overcomplicating what should be a friction-free, painless process."
More about mobile commerce, Facebook, Paypal, Ecommerce
 
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