Facebook and Paypal join forces

January 2nd, 2008 • Related • Filed Under

Facebook and Paypal join forcesThe some 70 Million Facebook users can now buy pizza “and other stuff” directly through their Facebook account. Facebook and Paypal have teamed up, opening up Paypal’s doors to the next wave of users, post-college kids with not enough disposable income to pay off that loan debt, but enough extra cash to push Paypal’s revenues through to new heights.

For years, Paypal has sought ways to push past its original dependency on its eBay source of business and while they have done a great job in recent years, they may have found their niche. Facebook users are typically college attendees and college educated, with an appetite for eCommerce transactions—just the type of users that Paypal is looking for. As more and more people are fearful of releasing their personal data into the hands of third parties, the Facebook/Paypal marriage may just be the thing these people are looking for.

What this also means is another blow to the Google Checkout business arena which is desperately struggling to gain momentum against Paypal. This certainly won’t be a good thing for Google, in what will be Paypal’s greatest single source of new, long term users. Additionally, as Facebook attempts to ensure the stickiness that it hasn’t found yet, they may just get that with the mix of Facebook and Paypal, as users may not be able to tell them apart. Can anyone say FacePal?

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There Are 11 Responses So Far. »

  1. Pingback by Cash Loan » Blog Archive » Facebook and Paypal join forces on 2 January 2008:

    [...] Original post by Merchant Talk [...]

  2. Comment by Marvin21 on 3 January 2008:

    Wow, this is quite interesting since I wasn’t aware of this as I don’t use Facebook.

    As for Google Checkout, they will probably do something similar to this with Orkut (owned by Google) which is similar to Facebook/Myspace.

    But the problem is that Orkut isn’t even that popular, and Facebook probably has way more users and is more known. Google would have to probably team up with Xanga or MySpace to get some significant gain in recognition for their payment processor.

  3. Comment by Hank on 4 January 2008:

    I don’t use facebook either, but it is a very interesting concept, ordering pizzas through a website lol
    Anyway, it’s a good thing, as paypal is a very trusted company too

  4. Comment by Joe on 5 January 2008:

    Wow, that is pretty cool. In my opinion Facebook will continue to grow because of these innovative new things that they keep coming up with. I think this is another set back for Google checkout though…

  5. Comment by Mikey on 7 January 2008:

    This is definitely a great move by PayPal to beat Google Checkout. PayPal is always working hard to expand their network. Way to go !!

  6. Comment by Seeker lucid on 26 January 2008:

    Its so comfortable to hear this. Great job by paypal. They are doing the best to serve the customers. We expect a lot like this from them.

  7. Comment by zuperman on 1 February 2008:

    Cool! First Ebay and now it is Facebook, what’s next for us?
    Pretty good move I would say.

  8. Comment by titan on 6 February 2008:

    I believe thats really a good idea. Yap. First with e-bay and right now with Facebook. I think its another good idea from paypal. I believe more site will have this features soon.

  9. Comment by Damia on 6 February 2008:

    Look likes pay pal want to expeand their services and try to beat another electronic payment processing. Hope can give the best service

  10. Comment by blogsha on 24 February 2008:

    Paypal rocks. Paypal comes with new ideas to increase their business. Ebay and facebook and many others.

  11. Comment by Rootkit on 24 February 2008:

    They have done a great job in extending their service! Merging with facebook is like the best thing that they have done

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