The payments system will be an easy way for online retailers to get paid on Facebook, as well as one more way for user data to flow to the social media giant
Facebook is planning to extend its payment system to online retailers in August this year. After credit card companies backed out of Facebook's Libra cryptocurrency, the social media giant had launched its own payment system on its main site and Messenger, with subsidiaries WhatsApp and Instagram in line to get it in future.
With the rollout for online retailers, shoppers on Facebook will see one more option listed next to the usual payment methods as Facebook Pay extends beyond the company's own platforms, reported The Verge.
Following the expansion, Facebook Pay will be open to participating retailers for transactions. It will be listed alongside other payment options like Google's stored cards, PayPal integrations, Amazon Pay, etc.
E-commerce platform Shopify is the first to add Facebook Pay in its list of payment options, with others to follow suit after it is extended to retailers in August.
While it will be an easier way for retailers to get paid with cards customers have already stored in their Facebook profiles, it's also a way for Facebook get more data.
The announcement points to this privacy page for Facebook Pay, which clearly states:
1. As with previous payment options on our apps, when you make payments with Facebook Pay, we'll collect information about the purchase such as the payment method, transaction date, billing, shipping and contact details. We designed Facebook Pay to securely store and encrypt your card and bank account numbers.
2. As with our other products, the actions you take with Facebook Pay can be used for purposes such as to deliver you more relevant content and ads, to provide customer support and to promote safety and integrity.