Facebook Reduces mPayments Friction

Facebook is rolling out an improved mobile payments system for its mobile web apps, reducing the steps required to make a carrier billing payment down from seven to two, without requiring users to do any typing.

This carrier billing method is currently available on the majority of operators in the UK and US – with the notable exception of Verizon – and, Facebook says, is in the process of being rolled out worldwide.

Michael de Jongh, sales director, mobile billing and payments at mobile solutions provider MACH, reckons this is good news for consumers and operators. “Consumers will love this approach as it gives them visibility over what is being billed,” says de Jongh. “Merchants and operators will love it as it provides detailed billing information, such as what was billed, who it was billed by and how much. As the bill clearly shows that the payment is for a third party, the operator is not involved in the brand value of the transaction. New revenue channels will also be opened for operators, who will find themselves with a place in Facebook’s content value chain. The sheer ease of direct operator billing will mean it has a massive impact on how often consumers buy goods from Facebook. The high volume of payments on the operator’s networks will allow them to drive up revenues for themselves as well as the content provider”

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