Tech blog AllThingsD reported that Facebook is currently developing on a new payments product for mobile apps purchases that may take on market leader Paypal, Amazon, Google, and even popular startups like Braintree. In the company's second quarter earnings report, Facebook earned 11.8%, or USD214 million from "payments and other fees", and is looking to boost that percentage.
Sources disclosed to the blog that Facebook has confirmed its testing of the features of its payments product. The social media company intends for its new product to utilize Facebook user login information. Moreover, the product also promises to sync credit card information stored in mobile app stores to Facebook user information to eliminate filling out billing information.
Facebook has partnered with men's clothier JackThreads with the newest venture.
The social media company released an earlier product called Facebook Credits to allow online users to exchange their cash for credits. This was phased out, however, when third-party games on Facebook started having their own virtual currency.
When asked for comment about Facebook's newest venture, Paypal released a statement. "We've been investing in mobile payments since 2006, and last year 10 percent of our total payment volume - USD14 billion - was from mobile devices. However, we always welcome competition and are looking forward to seeing what Facebook will announce," the statement said.
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