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Rahul Thadani

Facebook to allow credit card purchases: Wise move or not?

June 25, 2012
28
Estimated reading time: 2 minutes

credit_card_templateThe recent botched Facebook IPO, rising concerns about ad revenue, meeting the challenge of mobile monetization and looming privacy threats are pertinent issues that Facebook Inc. has to deal with. They are trying to find innovative solutions but there are bound to be hurdles along the way. Proposals to allow membership to under-13s have not been met with overwhelming enthusiasm, but this latest move could alter the scenario.

Facebook is now aiming to build itself as a payment platform by allowing users to make purchases in their local currency, through credit cards. The existing process of purchasing Facebook Credits in virtual currency will soon be abolished. Interestingly, the Cupertino outfit has been receiving a 30% cut from such purchases and this amounts to 15% of their total revenue.

Until now, such sales mainly dealt with virtual transactions for apps like Cityville, Farmville etc. But this update will encourage sellers and marketers to offer physical wares. In addition to gaining a channel for personalized targeting, sellers will also find it easier to acquire necessary data. A Facebook blog post defining the change reads – “By supporting pricing in local currency, we hope to simplify the purchase experience, give app developers more flexibility and make it easier to reach a global audience of Facebook users who want a way to pay for apps and games in their local currency.”

As of now there is not much to buy on Facebook, but this modification will change that. As per this TOI article, the changes are expected to take place next month and will apply to mobile devices as well.

User’s perspective: Convenience vs. Risks
Users will be able to subscribe to services that require monthly payments vis-a-vis one time payments being used so far. Moreover, users will pay in their own currency, a fact that is bound to enhance Facebook’s global appeal. While this works towards opening an interactive purchase portal for users, the fact is that Facebook will now also possess your credit card information.

Financial transactions require several layers of secure coding, so Facebook needs to implement the correct protocols. Hacking of social networks is constantly on the rise and Facebook’s large user base is a very inviting proposition for malicious parties. Identity theft and account hacking are rampant issues over Facebook and with the addition of credit card details to the mix it is further unsettling. While credit card details are required for purchasing Facebook Credits, this is a whole new ball game altogether.

Facebook is seeking revenue from sources other than advertising, but as users are you prepared to share your credit card details with them? In case of a security breach, credit card details are the finest prize, far more valuable than login passwords. Are you willing to put these details at stake for purchasing goods you can find on centralized shopping portals (in addition to in-app purchases over Facebook only) or do you think this is a wise move after all? Let us know what you think.

Have something to add to this story? Share it in the comments.

Rahul Thadani
About Rahul Thadani
Rahul is a web enthusiast and blogger, and has been writing about the computer security industry for the last three years. Following the latest technology trends,...
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28 Comments

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  1. tutu pandaJune 25, 2012 at 3:59 PM

    It willbe better for all the face book members.

    Reply
  2. It is very good move

    Reply
  3. srinivasa raoJune 25, 2012 at 5:07 PM

    it is not a wise move

    Reply
  4. No this is not at all a wise move…!!!
    and Financial transactions on social networking sites..!!!!!
    never ever….!!

    Reply
  5. izat mohammadJune 25, 2012 at 5:33 PM

    nwo preparing stuff this is as facebook has helped collecting almost any data of anybody CIA headquarters were recently very happy as it said that facebook is a intelligence dream come true for them. after this it goes to IRS etc . free offer implementaions promos blind people into their frequency and so most entrapp themselfs. they rammed two rfids into my head this bastards . if i was young i would fight and help to wake up all of you .

    Reply
  6. L.K.BabbarJune 25, 2012 at 5:40 PM

    Even as on today FB profile is not safe. You might have read many incidence reported in the media. One can easily say this move…..DO NOT EVEN THINK ABOUT IT.

    Reply
  7. It is very good moove.

    Reply
  8. T.J.BhaduriJune 25, 2012 at 6:28 PM

    No…. it’s too risky. I will never endorse

    Reply
  9. good

    Reply
  10. nilesh patilJune 25, 2012 at 6:38 PM

    no……. It will create big impact on card security or numbers passwords

    Reply
  11. SIRAJ MUHAMMAD FUNTUAJune 25, 2012 at 7:16 PM

    I believe everything that got advantage will definitely has a disadvantage. People take risk, not bcos they want to take it, but because it is a most to take risk for anyone to move ahead. Life itself is risky. Everybody is entitled to his or her own opinion.

    Reply
  12. good

    Reply
  13. No it’s not a good move & risky toooo. so i request do not use

    Reply
  14. badri prasadJune 25, 2012 at 7:30 PM

    no not required it will become too commercial

    Reply
  15. not a wise move

    Reply
  16. No this is not at all a wise move…!!!
    and Financial transactions on social networking sites..!!!!!
    never ever

    Reply
  17. bhimrajgurungJune 25, 2012 at 9:14 PM

    Not recomended,instead have authorised resellers all around in the country.
    There is likelyhood of foreign ex swindling as it is country is already facing massive problems !!

    Reply
  18. i like this

    Reply
  19. v krishna murthyJune 25, 2012 at 9:53 PM

    no it might be miss used

    Reply
  20. DINESH PATILJune 25, 2012 at 10:24 PM

    ossam

    Reply
  21. NOT SECURE AT ALL……………..

    Reply
  22. Hitesh P - The Name is Enough.June 25, 2012 at 11:35 PM

    No not at all. Fraud will increase.

    Reply
  23. Jayesh AgrawalJune 26, 2012 at 10:39 AM

    Since,facebook ID is being hacked successfully it is not a wise move.

    Reply
  24. Of course not a wise move.

    Reply
  25. sajad khanJune 26, 2012 at 2:42 PM

    this move is the need of the hour,go for it

    Reply
  26. Divya shahJuly 4, 2012 at 9:27 AM

    this is a really good idea but you guys cant provide those purchase cards in small towns and villages

    Reply
  27. For all the people who have their opinions about whether this is a good move or not, thank you for your involvement. Please stay tuned for more debates about such issues.

    Reply