Further confirming Facebook’s plans to introduce a payment processing service to rival PayPal and Google Checkout, the company has hired Prashant Fuloria, who used to run Google Checkout, to run the “Pay With Facebook” product.

According to Silicon Alley Insider, Facebook stands a good chance of successfully competing against such established players. Facebook has somewhat paved the way with Facebook Connect, which gives websites a one-click website registration mechanism as an alternative to requiring users to fill out multiple forms. Pay With Facebook would offer similar ease-of-use on ecommerce websites.

Meanwhile, Facebook also has the ability to leverage its 250 million users – impressive when compared to PayPal’s 50 million registered users. While not all those Facebook users are likely to sign up for Pay With Facebook, if just a quarter do so, Facebook will immediately have the same user base as PayPal.

Even if only, say, 10 percent sign up for Pay With Facebook, that will still be a good starting point and may provide Facebook with a good business right there.

Source: Nicholas Carlson, “Facebook Is Going After PayPal, Google Checkout,” Silicon Alley Insider, June 30, 2009

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