Social network begins showing interest in mobile commerce
Facebook may be stepping into the mobile commerce arena as it begins testing its own mobile payments system. The social network has been looking for ways to improve its standing in the stock market and provide more value to the services it provides to consumers. Recently, this endeavor has manifested itself through the social network’s stronger focus on mobile marketing and providing analytic services to advertisers. Now, however, Facebook may be switching gears to embrace a trend that has been growing in popularity among consumers recently: Mobile commerce.
New service aims to streamline mobile payments
The social network is currently testing a service that will function as a companion to PayPal’s e-commerce services. The current stage of the test involves Facebook’s payments service to store and fill-in a consumer’s financial information in order to streamline the process of making a purchase using a mobile device. The service is meant to use this information to make the purchase of Facebook Gifts more convenient. The service is also meant to streamline in-game purchases for the various games that are supported on the social network.
Facebook won’t compete with PayPal or others
While Facebook is showing some interest in mobile commerce, the social network does not yet have any intention of competing with companies like PayPal in this sector. Currently, Facebook is primarily interested in making mobile payments easier for consumers. Considering that a fair amount of the social network’s users access the platform from their smartphones and tablets, the company is keen to ensure that these users are able to use the social network to their benefit.
New service could be a benefit to Facebook
This new initiative could be a major benefit for Facebook. It will allow the social network to determine whether ad-clicks turn into sales, which could provide the company with a stronger standing in the marketing sector. If this is the case, it could also meant significant return-on-investment for the advertisers that have been using the social network to reach out to and connect with its users.
Facebook could be showing more enthusiasm for mobile commerce
It is no secret that Facebook is looking to appeal more heavily to mobile consumers. The social network has begun seeing its place as social media dominator slip over the past year as a growing number of tech-savvy and younger consumers begin to look elsewhere for their social networking fix. Facebook recently identified mobile as its future, but the social network’s exact plans therein are still somewhat vague. Mobile commerce, marketing, and mobile games may be part of the company’s plans to solidify its grip on the often fickle realm of social networking.
Facebook acquires Osmeta
Facebook has announced its acquisition of Osmeta, a software startup with a focus on the mobile sector. The acquisition comes on the heels of the launch of the Facebook Home application. The app serves as a sort of faux operating system, changing the way a smartphone’s interface looks and functions. The goal of the application is to make Facebook ever-present in the lives of mobile consumers by, quite literally, making the social network the first and last thing people see on their mobile devices.
Mobile plans are not yet clear
Exactly what Facebook plans to do with Osmeta is not clear. Osmeta notes that it has been working on a large project for some time, but details concerning this project are equally unclear. The company currently accounts for 19 software engineers from varied backgrounds. There is speculation suggesting that Facebook has plans for a new mobile commerce application or mobile commerce features that will be incorporated into the Home application. Facebook has shown some interest in mobile commerce in the past and has even recently begun charging for certain services it used to offer for free; services that mobile consumers must pay for if they want to use them.
Facebook may eventually address mobile commerce
Like other social networks, Facebook is currently at a crossroad. The social network is becoming increasingly enthusiastic about the concept of monetization, while it is also facing strong feedback from its users who want to see the social network remain a free platform. Whichever path it chooses, the company will remain focused on the mobile space, which will eventually bring Facebook to confront the prospects of mobile commerce more aggressively.
