Facebook has just announced a new feature that lets users buy products right from their News Feed. The function, which the company has christened as the "Buy" button, is meant to convert Facebook users into impulsive online shoppers, giving people the capability to make purchases without being redirected to merchant's website or app.
The social network's shopping feature is currently only in its test phase. To take part in the experiment, users are required to enter financial information such as debit or credit card number into Facebook's system, which may seem risky in light of recent credit card hacks with restaurant chain PF Chang's and craft store Michaels.
Nonetheless, Facebook is reassuring users that it is working on protecting its payment system from security breaches. "We've built this feature with privacy in mind, and have taken steps to help make the payment experience safe and secure. None of the credit or debit card information people share with Facebook when completing a transaction will be shared with other advertisers and people can select whether or not they'd like to save payment information for future purchases," the company said in a press release.
This is not the first time that Facebook has attempted to conduct business with real money. Last April, the company gained regulatory approval from the Central Bank of Ireland for offering remittance and payment services. This means that the company has permission to offer services similar to that of a chartered bank. The approval also allows Facebook to facilitate transactions between users and online merchants.
Previously, the company attempted to institute online payment services with Facebook Credits. The feature, which allowed users to buy apps and virtual items with credits, was discontinued in 2012.
Currently, the test is only limited to select small and medium-sized businesses in the United States. The Facebook "Buy" button may end up competing with Twitter's "Buy now" button. The Twitter feature, which was first spotted by Recode, is said to be the result of a collaboration between the social network and shopping app Fancy. The "Buy now" button, which appears in both Timeline and expanded tweets, first showed up in Twitter mobile apps last June.
