Three Reasons Why Facebook Payments Test Is the Smartest Thing They’ve Done All Year

 
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Facebook has announced that they’re testing a new way to make purchasing easier online – and it’s smart.
In a nutshell, the new feature works like this: you visit an e-commerce app or click through to an e-commerce website from Facebook to buy something you will have the option to pull in your billing information from Facebook automatically with one button rather than filling it out yourself. Facebook then report back to advertisers with a report detailing whether clicks on the ad led to a sale.

Why this is smart:

1) Provable ROI. The most obvious way is that this gives Facebook a way to prove ROI on ad spend.  In a world where marketing managers are having to account for every penny of their budget that’s a smart move and you can easily see how this will encourage greater investment in FB advertising.

2) Compatible.  It works with PayPal, Stripe, Braintree and other payment processors which is smarter at this stage than trying to reinvent the wheel.

3) Behavioural. Facebook clearly understands that as humans we take the path of least resistance, and tapping away on a tiny mobile keyboard entering your billing details is a sure fire way to kill a sale. This new function bypasses that fiddling, and with Facebook reporting that over 80% of activity is mobile, you can see how increasingly powerful this is in encouraging purchasing behaviour.

Olly Honess is an account manager for @cubaka.