Facebook Payments Could Shake Things Up

The recent creation of Facebook Payments, Inc., a subsidiary of the company devoted to overseeing payments and transactions, is generating a great deal of speculation regarding future expansion.  Formally, it is a division that is:

“organized for the purpose of transacting any or all lawful business,”  Facebook officials stated. “As is common in many company structures, we have established a subsidiary called Facebook Payments Inc. that helps handle payments to developers related to our Facebook Credits program.”

While current operations are tied to Facebook Credits it’s not difficult to envision alternate financial futures and opportunities.  Having registered in a number of states, one of the most obvious thoughts is that Facebook may be looking to work through local regulations in order to build a competitor to PayPal. More broadly, Facebook may be looking to bridge the digital divide and introduce point-of-sale payments both online and offline. Other possibilities include a Facebook ad network that could rival Google’s, new pushes for increased e-commerce, and building out capabilities anticipating the growth of mobile payment.

Ultimately, the chatter around this development speaks to the mammoth influence Facebook has over the markets it chooses to expand into.  In this case, even a tiny kernel of an idea, based on conjecture and vague PR-speak, has the momentum to set whole industries abuzz while they attempt to divine Facebook’s future.

Business Insider: “Watch Out PayPal, Facebook Is Getting Serious About Payments