Facebook, eBay join hands to untap PayPal potential

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Facebook announced it is teaming up with eBay to tap the potential of the largest commerce eco system. The announcement was made in San Francisco at Innovate, eBay?s developers conference Friday evening.

Facebook and eBay will be able to integrate their technology through Facebook?s Open Graph 2.0 functionality of global commerce systems. This department comes under the new division called X.commerce, and includes eBay, PayPal and Magneto.
eBay developers will now be able to create applications for Facebook users not only to ?like? but will also be able to ?buy?, ?own? and ?review? products, and share them on their personal page with their families and friends. ?This takes word-of-mouth marketing and puts a bullhorn to it,” Katie Mitic, Facebook’s director of platform said in Wednesday?s conference.

“This is a positive step for merchants and developers, but the Street was likely looking for a higher-profile partnership with Facebook across eBay and PayPal,” Doug Anmuth, an analyst at J.P. Morgan, wrote in a note to investors. “That could still happen down the line, but we do not expect it in the near term.”

Analysts expect further projects with PayPal, who are eBay?s primary payment service provider.

In recent weeks, Katie Mitic joined eBay, as one of its board members, fuelling speculation of further partnerships would follow between Facebook and eBay. Following the announcement of the X.commerce, eBay shares slipped 0.2 percent to $32.75, while the Nasdaq Composite index rose 0.84 percent.

This will have no bearing on the UAE market, as eBay does not ship products to the Middle Easter region. The website souq.com, which has almost the same features as eBay, caters to the needs of the UAE and Middle East market. It is not known whether Facebook will have any future project plans with Souq, UAE’s answer to eBay.

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