Facebook's Making Facebook Pay Available as a Payment Option on Third Party Websites
Payments are becoming increasingly important as eCommerce becomes a major focus, and providing new, easier options for customers to make purchases in-app with little disruption to their in-app experience. On this front, Apple is already seeking to expand its payment systems by including a new pay by installments aspect into Apple Pay, and now Facebook is looking to expand its payment reach by making Facebook Pay available as a check-out option on third-party websites.
Businesses in the United States who utilize participating platforms will be able to activate Facebook Pay as a payment option directly on their websites starting in August, allowing their consumers to skip the checkout process without having to re-enter their payment information. According to Facebook, the rollout will begin with Shopify businesses and will gradually grow to include new platforms and payment service providers. This might give Facebook's broader eCommerce choices a major boost by building more trust in Facebook Pay as a payment option, thanks to its placement on other, respected websites, which gives it more visibility and endorsement.
And as users become accustomed to paying with Facebook Pay in more ways, they'll be more likely to do so on Facebook and Instagram as well, aiding Facebook's larger goal to make all posts shoppable, hence increasing in-app activity. In addition, while losing access to a lot of user activity intelligence as a result of Apple's latest ATT data tracking change, the method will give Facebook more direct transaction data, which could help it better attribute ad response.
Facebook does say that any payment information provided through Facebook Pay is encrypted, and that the card and bank account data provided "will not be used to customise their experience or to inform the adverts they see." However, it would still have information on people's purchases, which it might link to their Facebook activity. In this way, depending on how Facebook connects that data back to each person's Facebook presence, it might provide a significant rise in ad targeting options.
It's a nice addition for Facebook in any case, and it might have a big impact on its burgeoning eCommerce drive. It may not appear to be a significant move in this direction, but making it easier to use and increasing credibility through increased exposure might give Facebook's burgeoning commerce operations a considerable boost.