Active Performing Stock: Facebook (NASDAQ FB) tests the “Buy Button” Feature

Facebook Inc (NASDAQ FB) is testing a new “Buy” button on ads and page posts for desktop as well as mobile users. Facebook has reportedly partnered with a third-party payment processing company to process transactions. The feature is first being tested with a few small and mid-size businesses in the United States.

The new “Buy” button will let users buy directly from their news feed, without having to leave the Facebook platform. The social networking giant is hoping that the feature would lead to more impulsive buying, boosting the sales of advertisers.

The social networking giant, Facebook, isn’t taking a portion of the revenue for goods sold through the Buy button in the testing stage. This feature further gives both Facebook mobile or desktop users the option to buy a business’ product directly through the social media outlet.

Facebook Inc: Facebook “Buy” Button

Facebook has dipped its toe in the e-commerce in the past, but with limited success. The Menlo Park-based company has more than 1.2 billion users worldwide, representing a huge opportunity for merchants. However, with almost everything Facebook does, there is a big concern over user privacy. The company has violated privacy policies several times in the past.

So, why should users trust Facebook with their credit and debit card information? Well, the company said it will safeguard the credit and debit card information, which won’t be shared with other advertisers. However, Facebook will rely on a third-party payment processing company to process transactions.

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Facebook Inc (NASDAQ FB) Business News

The brick-and-mortar retail is in a long decline due to the emerge of online retail. And the future of online shopping may well be in online communities. Moreover, online advertising rates are falling consistently. Even Google Inc (NASDAQ GOOG) has reported ad rate declines. Platforms with a huge amount of user information are looking to build e-commerce into their platforms. It makes perfect sense for Facebook Inc (NASDAQ FB) to incorporate buying opportunities directly into its site.

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