Facebook Inc (NASDAQ:FB) Should Use “Buy Button” to Win Payments

Facebook Inc NASDAQ:FB

Facebook Inc wants to be used by people to make payments, but Mark Zuckerberg and his team are having a lot of trouble convincing people in the US to add their credit card details to the service. Back in July the firm rolled out a Messenger feature that allows users to send cash with a simple text. According to a piece in the Washington Post this morning, it’s just now working.

Facebook Inc NASDAQ:FB

Facebook wants credit card details

The hardest part of getting people to use a mobile payment service is getting their card details. People are suspicious of entering their details, and are only likely to do so if they have something that attracts them. Sending money through Facebook  Messenger doesn’t seem to be a good enough reason.

Paypal managed to get users because it became the safest way to buy goods from eBay and other online retailers. Apple Pay may take off quickly because Tim Cook’s firm already has millions of credit cards on file from years of music and app purchases.

Once a user saves their details they’ll use the service much more readily. It’s getting them to give up those numbers that proves a problem.

Mr. of the Post reckons that “there is tremendous opportunity for Facebook to go after payments in places like Latin America, Asia and Africa.” Facebook, with recent lunges toward e-commerce, may have other ideas.

Facebook brings a Buy Button

Facebook  may try to follow in the footsteps of firms like Apple and Paypal in order to build up a business for itself. The firm has made several moves in the direction of online product sales in recent months, and many analysts are excited at the prospect.

Back in June Facebook, working with Shopify, said that it would launch a Buy button for certain pages and products. The firm has also added a “Sell Something” feature for members of certain groups. Mark Zuckerberg’s team is active in testing both of these ideas, and they could be used to make paying for stuff a whole lot easier.

Adding  buying options on Facebook, and urging users to pay using the firm’s Messenger platform, may be the best way for Facebook to collect the card details needed to further its financial goals.

It’s not clear what Facebook wants to do with the payments business it’s building. If it just wants to add features to Messenger it’s done a decent job, and may get additional downloads as a result. Facebook tends to be more forward looking and ambitious than that, however, and it’s likely the firm wants to build a thriving payments business to rival those of Apple and Google.

Bob Peck thanks that a Buy Button on Facebook could add 10 percent to the firm’s total sales. Few on Wall Street have covered Facebook’s payments in any detail. Without a full scale roll out of the Buy Button they may never have to.

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