Facebook is coming after eBay’s (EBAY) PayPal and Google Checkout and it’s hiring-up to do it.
The guy who used to run Google Checkout, Prashant Fuloria, left Google (GOOG) after six years last month and now works for Facebook. He is responsible for the “Pay With Facebook” product, reports Inside Facebook.
Though Mark Zuckerberg has only suggested it’s a long-term goal, it’s looking more like “Pay WIth Facebook” will compete not just with the for-social-networks-only payment systems from startups Zong, Boku, Social Gold and Slide, but also with the Web-wide biggies PayPal, Amazon and Google Checkout.
We have two main reasons Facebook stands a better than fighting chance against those established players:
Facebook Connect’s success with publishers. Small and large publishers alike tell us allowing users to login to their sites through Facebook Connect has wildly increased user-interaction. Some Web publishers have told us user registrations and comments multiplied almost immediately. Facebook Connect proves that when users are offered a one-click alternative to a series of forms to fill out, they’ll take it. “Pay With Facebook” would offer this same alternative at e-commerce sites.
Facebook’s ridiculous scale. PayPal has under 50 million registered users. Last we heard, Facebook has around 250 million users who come to the site at least once a month. Obviously, not all of them will sign up for Pay With Facebook, but all the users fueling the booming virtual goods business will. So will younger users who don’t have their own credit cards.