The popular social networking site Facebook announced this week that it will be looking to expand its Credit system to allow consumers to make credit and debit purchases at online destinations.
Facebook Credit used to only allow users to purchase virtual goods and gifts, though some industry experts expect this could soon expand to include digital versions of popular brick-and-mortar storefronts.
“Facebook is key,” Danny Rimer, a partner at European venture capital firm Index Ventures, told Forbes. “Five years ago it was search engine optimization. Today if they haven’t incorporated Facebook Connect into their retailing experience, they’ll need more experience.”
Retailers have already started to vie for this online real estate, as British fashion outlet ASOS became the first European company to open a Facebook store. The company says it has already experienced a strong number of referrals and earned millions from the site, the news source reports.
This could potentially open the door for Facebook to compete with cell phone companies in the growing market for payment processing. In addition, the site is now fully Payment Card Industry compliant, which means it and can compete with credit card companies for a share of online transactions.