Report: Facebook Moves Deeper Into Mobile Payments

Facebook'sFB +0.34% goal is to connect the world. Now, it seems the company wants to connect world’s wallets.

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Facebook CEO Mark Zuckerberg

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According to a report in the Financial Times, Facebook has taken steps to get regulatory approval for a mobile payments system in the United Kingdom.

It’s long been rumored that Facebook might start a mobile-payments system. Like PayPal, Facebook could charge a commission for each transaction and collect a portion of payments, giving the company a new revenue stream beyond just advertising.

Facebook declined to comment.

A mobile payment system would also allow Facebook to gather even more personal information about people that it could use for targeted advertising, which is at the core of the company’s business.

Knowing the spending habits of its customers also could allow Facebook to match purchases with ad campaigns, helping the social network prove the efficacy of its advertising.  Right now, Facebook partners with third party data brokers to accomplish that goal.

Facebook already dabbles in this arena, collecting payments from videogame makers who develop apps for Facebook. But as more people move from desktop computing to smartphones, that business has been shrinking.

Facebook has been on a tear recently, pushing to expand its business beyond just social networking and onto new platforms. It acquired mobile-messaging service WhatsApp in January for $19 billion and virtual reality goggle maker Oculus VR for $2 billion last month.

#Source:
Report: Facebook Moves Deeper Into Mobile Payments
By Reed Albergotti
http://blogs.wsj.com/digits/2014/04/14/report-facebook-moves-deeper-into-mobile-payments/?mod=e2tw
Apr 14, 2014
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