Store your credit card information on Facebook
Facebook is offering a new service where members can store their credit card number and make purchases on the Facebook site. This is excellent news for shareholders who were frustrated with the initial public offering of the stock only to see the value fall days later. This is considered as a major game changer to many. Currently, Facebook offers the ability to buy things on Facebook using credits. This accounted for fifteen percent of last year’s profit. This move of allowing Facebook members to use real currency to purchase items is seen as a real game changer for investors. If this platform is adopted, it will produce a real revenue stream for Facebook increasing the value of the depreciated shares.
“They are showing us we care about driving revenue, and I think that’s great. That’s what investors want to see,” said Michael Pachter, an equities analyst at Wedbush Securities. ”
How Will the New Facebook Payment System Work?
This new Facebook payment service will be priced in the local currency of the user. This was done to encourage immediate adoption from individuals all over the world. At Creditfast we believe that local currency of the user is used because some credit card Companies charge a foreign currency exchange fee when purchases are converted to the card holders currency. By bypassing these fees it is believed that this will help to promote the use of this new Facebook platform. This is truly a smart move by Facebook.
The new system will have users type in their credit card information and store it on Facebook. Now it only takes one click, and users will be able to buy whatever is offered on Facebook, priced in their local currency. The changes announced on Tuesday will get a variety of different companies to sell their products on the new Facebook payment platform. Previous to this new technology the majority of all sales were from software game developers. This new payment system will help keep Facebook relevant to users and help promote commerce.
When Will The New Facebook Payment System Start?
These changes will start next month, and the goal has been that they work on mobile devices as well. Facebook is using the Apple iTunes model. Consumers around the world will have the opportunity to buy various goods and services through Facebook directly. As with Apple iTunes customers will be able to make purchases and receive them almost instantly. This type of consumer-friendly retail environment is what Facebook hopes to emulate.
Currently, most of the profits Facebook earns is through their advertising program similar to the Google Adsense model. Ads are served on various pages of the Facebook social networking site. Consumers can click on offers to different online retailers. The disadvantage of the ads program is that it takes Facebook users off of the Facebook site and onto another site.
This new payment platform will now give Facebook more revenue from sources other than advertising, and allow the company the opportunity to benefit from the purchases made online more directly. Consumers gain by having a fast and straightforward means in which to make credit card transactions on Facebook.