By understanding what consumers like and discuss on the platform, Facebook understands much about their propensities and inclinations, Altimeter Group digital advertising and media analyst Rebecca Lieb told CNET. But...actual spending data -- knowing what people buy -- breaks opens the possibilities of advertising, targeting, and messaging in ways that are extremely precise, valuable, and meaningful to advertisers.

We are working on a very small test that gives people the option to use their payment information already stored on Facebook to populate the payment form when they make a purchase in a mobile app, a company spokesperson said. The test is designed to make it easier and ster for people to make a purchase in a mobile app by simply pre-populating your payment information.

According to reports, the pilot Facebook feature will let social networkers pass along their credit card and billing information with a single click when a purchase on mobile. The actual transaction, however, will be handled by the payments provider used by the application in question, according to TechCrunch, which means the system works with PayPal, Braintree, and other processors. Facebook confirmed to CNET that it is not processing payments.

Purchases via FB Log-in = more data to prove FB ads= $$$$, more reason for brands to buy ads/improve brands content on fb/fb Facebook to take on PayPal? Not so st Social Mediapages

Surely, Facebook envisions a future when you shop on your smartphone or tablet and keep the company in the loop on all your purchases -- but the social network poses no threat to PayPal.

The company plans to test a pay-with-Facebook mobile checkout option, as scooped by AllThingsD,new york escort but its not trying to take over the complicated payments processing market, as has been suggested. Instead, Facebook wants to collect more data -- the best kind of data -- to pass on to its advertisers.

The social network wants to collect your shopping data, but its not trying to become the next PayPal.

The social network needs data -- to continue to boost its burgeoning mobile ads business -- more than it needs to reinvent the wheel. If Facebook can act as middleman between mobile shopper and app maker, and help people quickly get through the often overly complicated mobile checkout process, then the company can help its advertisers fill in the blanks between online exposure and purchase.

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The question is,Social Media Lieb said, will consumers want to hand over credit card info to a company associated with social and sharing? Early evidence suggests that the answer is no.

Update, 1:36 p.m. PT:With comment from Facebook.

Evelyn Rusli (EvelynRusli) August 15, 2013

And that makes a lot more sense than Facebook attempting to become the next PayPal.

In theory, Facebooks middleman approach to mobile payments could work, as the company maintains close ties to thousands of developers whove already put Facebook hooks inside their applications. But Facebook Gifts, the 1-year-old online marketplace where people can purchase presents to send to friends, has iled to gain meaningful traction or generate revenue, highlighting the social networks inability to convince its 1.15 billion members to mix commerce with their status updates.

Jennifer Van GroveJennifer Van Grove covers the social beat for CNET. She loves Boo the dog, CrossFit, and eating vegan. Her jokes are often in poor taste, but her articles are not.

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