Facebook To Accept PayPal for Ads and Facebook Credits
Facebook and PayPal have announced a strategic relationship to offer PayPal in key parts of Facebook's advertising and developer systems. According to the two companies, "advertisers around the world will soon be able to use PayPal to pay for Facebook Ads through the company's online advertising tool. For businesses in areas where the payment process can be difficult and expensive, the option to pay with PayPal makes it even easier for advertisers, particularly small international companies, to run campaigns on Facebook. In addition, PayPal will become a payment option for Facebook Credits, which is currently being tested in a small number of games and applications. The goal of Facebook Credits is to give users a fast and easy way to buy virtual goods on Facebook, including items from the Facebook Gift Shop."
"We want to give the people who use Facebook, as well as advertisers and developers, a fast and trusted way to pay across our service," said Dan Levy, director of payment operations, Facebook. "As our business has grown, offering local methods of payment has become increasingly important for advertisers who want to buy Facebook Ads. Teaming with PayPal, a global leader in online payments, makes this possible."
"Put simply, PayPal's business is payments. We make it easier for customers to send and receive money online in 24 currencies and 190 markets around the world," said Osama Bedier, PayPal's vice president of platform and emerging technology. "We've always been an important part of the developer ecosystem on Facebook, and we're excited to expand our relationship directly with Facebook to help grow advertisers' and developers' businesses."
I do not understand this latest move by Facebook, but then again I wasn't present at the meetings, so it could be that I am missing a 'grander' strategy.
It appears to me that Paypal is simply now a VISA/MC/bank account intermediary and Facebook is certainly free to develop/extend those cc relationships. Can someone please clue me in on what I am missing here? Facebook needs revenue and their most promising path to revenue had seemed to be via exploiting the payment platform space!
--Jon Matonis
http://themonetaryfuture.blogspot.com
Posted by: Jon Matonis | February 18, 2010 at 10:50 AM
Facebook ads do not accept yet payment via PayPal, i have tested it personaly at the end, checkout only with credit cards.
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