eBay will receive a great challenge from Facebook of online payment business

According to the foreign media reports, Facebook will set online payment as its next development breakthrough. Analyst said its new payment mode will pose a threat to eBay’s PayPal; especially Facebook Connect will push the payment service to the third party.

"It's not an easy business to do well, but Facebook has a good shot at it," said Ben Schachter, an analyst at Broadpoint AmTech. "It is a long-term threat."

Involving into online payment indicate Facebook has a dream that a new business mode to make up its single advertising revenue model. As for developing object of the new payment business, the spokesman of Facebook is unwilling to evaluate. However, a serious of action shows that the website is ambitious indeed.

Last year, Facebook launched suppositional currency which can buy any virtual and real-world gifts such as cards and digital flowers.

In May, the system was opened to game developers of the third party. At last, besides US dollars, Facebook started to accept other 14 currencies which have cover almost 70 per cent of netizens except America.

This month, Facebook stated the site is testing a payment system which can be used to purchase virtual goods. In addition, the site has already tested to pass another system of purchasing point via cell pone bill.

Recently, recruiting professionals is also a signal that of Facebook has a high target. In the past May, the site engaged Prashant Fuloria, a former high-level of Google Checkout, and Ivan Kirigin, a co-founder of the micro-payment site TripJoy.

Analyst point out that Facebook will make use of Connect service to have lots of websites of third party is able to use its payment service. A few days ago, Mark Zuckerberg, CEO of Facebook expressed that payment business is hopeful to become a “very important” business, who also hinted Connect will play an important role.

Although the preparation of Facebook is full, it is not an easy thing to challenge PayPal. Last year, PayPal got revenue of 2.4 billion US dollars. And eBay expects to achieve 4 billion to 5 billion US dollars. Actually, a lot of new corporations which use online payment desire to challenge PayPal, yet almost all the companies end with a failure.

 “In order to make Facebook’s payment successful needs a clear developing strategy, cultivate a brand trusted by the consumers, and advise more buyers to accept its suppositional currency.” Said Bruce Cundiff, an online payment analyst of Javelin Strategy ? Research CO.

So, although the target is ambitious,if you really want a threat to PayPal, and even defeat PayPal, Facebook still has a long way to go.

As the largest China electronics wholesales, epathchina.com also concentrates on this issue, as epathchina.com is a winner of e-commerce, which is also beneficial.