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The product, sources said, would allow any shopper who has previously provided Facebook with their credit card details to make purchases on partnering e-commerce mobile apps without entering billing information.
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That setup allows partnering commerce companies to still work with payment processors of their choice
Translation: In essence what this does is take the credit card information that FB has on file for a customer and upon providing the FB login this information is transmitted by the customers cell phone to the merchant generating a card not present transaction with the merchants credit card processor. The net effect is to turn a credit card transaction that is not subject to chargebacks into one that is! PayPal will run circles over this and so will Bitcoin. Not only is this very lame idea not a threat to Bitcoin it may actually help Bitcoin in the in person payment market once the security nightmare this will create has the merchants, credit card processors, banks and credit card companies all up in arms when the chargebacks and fraud this will create starts to show up. Hacked FB accounts anyone?Give it a year or so and this will be dropped just like FB credits, in the meantime I would not be surprised if BTC / USD exchange rate is in the 4 or 5 figures. Next please.
