Facebook Payments & GAFA (Google Apple Facebook Amazon) Card Partners

Facebook Payments

Facebook Payments and
Card payments Partners

Thanks to the likes of Apple Pay, everyone wants a piece of the action, and now it's Facebook's turn to introduce facebook payments.

Mark Zuckerberg (Facebook founder, Chairman/CEO) has given us a hints that facebook is moving into payment system space, just as Amazon and Google are working on plans to enter the payment market.

But by partnering with an existing card payments providers or PayPal rather than try to build its own payment system, Facebook does not want to create the hostile payments ecosystem.

Could this be considered as a concerted effort by facebook payment to break through into the payments market?

Facebook as the last player of the so called GAFA (Google Apple Facebook Amazon) group is planning to offer a payment service to its users.

Facebook Provides "Ebola Button"
To Allows Users Donate

The social network giant facebook has begun trialling a payment system "buy" button that enables users to purchase products advertised on the social network as this facebook payment button will help the facebook measure how its servers handle secure money transfers.

Recently, facebook has added a facebook payment Ebola button to users' profile pages to help people donate money to charities fighting the Ebola disease.

This gives the impression that Facebook payment does its part to help fight Ebola.

The money will go to charities like International Medical Corps, the International Federation of Red Cross and Red Crescent Societies, and Save the Children.

Facebook is also providing internet connectivity and paying for 100 satellite communication terminals to help improve internet and phone services in West Africa.

And critics have been accusing facebook of adding the facebook payment button purely as a marketing move.

It can be said that Facebook is giving everyone the ability to donate, but how much is Facebook donating? This gives the impression of just marketing.

Facebook, the social network giant is really testing and measuring how its servers handle secure money transfers via facebook payment.

In addition the social network giant facebook is also adding the person-to-person (P2P) payments within its Messenger app in support of facebook payments.

The search giant says... It's has no Messenger payments plans but made it clear that advertising is his focus. Facebook view the advertising part of the business as a more efficient as facebook payments itself.

Since payment tends to be fixed-fee, whereas in advertising, because of the auction model, there's really good price discrimination built-in.

However, Facebook boss, Mark Zuckerberg says that facebook payments are important because it helps advertisers to close sales.

But it is better to partner with other companies on to enable great solutions, rather than trying to compete and do it as a business by facebook.

All the evidence adds up that Facebook wants to move into the money transactions market.

Facebook Payment is a Teenagers Benefit

Facebook, the social network giant is excited about partnering with credit card companies and partnering with PayPal and all of the different firms in online payments to make their solutions as good as possible.

For sure, the future of payments across the globe will be impact these companies and their products.

Other than wanting to make more money, what problems (if any) is Facebook payment seeking to solve? Who will use the service, and how will it fare against the others in the mix payments?

May be you're intrigued by the potential for Facebook Payments? This is something most adults would not use, but something many teenagers could benefit from in low value payment.

Members of Wavey influential fashion sites in the United Kingdom (UK) would welcome this. Merchant services sellers post their adverts in Facebook social networking site, buyers express an interest and then, after agreeing a price they exchange the clothing and (inevitably) cash, sometimes even face-to-face.

So converting people onto electronic payments instead of cash could be good for business. Obviously a Facebook Payments option is a winner for Facebook Company, but not sure whether it will bold well in a wider world of retail payments.

Alternative Payments Market

Truly, Apple has demonstrated its superb dominance a new position in the growing alternative payments market and has mastered the behavioural consumer economics issues and behaviours of the situation.

The ability to work with an extended payments provider's ecosystem, such as card schemes and bank card issuers to deliver an experience to consumers and retailers that is familiar and intuitive and perceived to be innovative.

This shows that Apple Pay has a good comprehensive view of the big picture of payment industry. However, consumers and payment retailers don't necessarily want new payment options and payment instruments.

Consumer Payment options
and payment instruments

Most payment paying consumers prefer incremental improvements to previously well understood Payment options and payment instruments. Hence, paying via a telephone or mobile phone is undoubtedly a common practice as it's something we all use all the time!

Apple as a company has sorted out the payment economics so it can justify charging fees to card issuers.

Even though, Apple is well ahead over GAFA rivals, it's worth noting that Apple has not really created a new Payments system at all!

The Apple Pay service is really just an extra layer that is added on top of existing payments systems and existing payment providers - specifically card issuers - have no real incentives to join this new add-on service.

Google Mobile Wallet Merchant

Google invested in its mobile wallet merchant thinking the future is about data-driven, where merchants would like to see a step change in marketing data improvement.

Wishing the new world of predictive analysis would drive retail sales and margins. As a result should allow Google to charge reasonably to merchants. But the market did not embrace Google ideas as there was personal data backlash.

But a small number of consumers were willing to subscribe to Google's view of payments, and even fewer have not bothered to learn the new way to pay - the Google Mobile Wallet.

Amazon's Person-to-Person Payments

Amazon saw that the consumer paying public did not embrace Google's Mobile wallet and made a decision to drop its own Person-to-Person (P2P) payments mechanism with moves into a mobile Point of Sale (POS), and looks for more a pragmatic approach - no new payment instruments.

Amazon just focuses on ways of allowing existing instruments to be accepted by a wider range of online retailers.

Like Apple Pay, Amazon is using a familiar experience of attaching payment in a Person-to-Person message as we can all attach something like photos so why not a payment?

Facebook payments assumes that social networking Facebook friend groups and trading group members may want to send money to each other and facebook shopping consumers will be happy to upload and store financial information to Facebook.

Even though, facebook payment methods would certainly be different to Apple, Google and Amazon.

Questions on Facebook Payment

However, there are some questions that need to be answered:

  • Will facebook payment methods be a natural enough user experience for a wide population?

  • Will it provide a new service that cannot be found in another place at a similar price?

  • And most importantly, if you think this will be a great way for parents to send money to children, can someone who is friends with my child please ask him to re-friend me?











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