PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Potential Commerce Applications Drive Facebook’s Interest in Real User Identities

By Patricia McGinnis
August 8, 2011
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
cash

Does your Facebook account informationinclude your real name, or a pseudonym? When you set up youraccount, did you provide your primary e-mail address, or analternate? Recent pronouncements by Facebook’s head of marketing,Randi Zuckerberg, have focused on the company’s belief thatanonymity has to disappear in the online world, or at least, inFacebook’s world. Facebook wants to know who we really are.

TechCrunch’s Semit Shah presents the pros and cons of thedebate:

“The topic of online identity and anonymity ispolarizing. Powerful interests have strong incentives to build aweb where real identities rule. Other powerful interests will fightrelentlessly to protect and preserve spaces for users to interact,either anonymously or through pseudonyms.”

He then outlines his analysis of the waysthat secure, verifiable online identities could be useful (and moreefficient) to all of us, and concludes with his belief thatFacebook, LinkedIn, and the like are well-suited to thistask.

“The real economic potential these types ofcompanies have is in verifying and authenticating our identities sothat they can provide us with an interesting and fun onlineexperience, connect with parts of our professional and personallives, and potentially power a new type of commerce that couldgenerate massive sums of revenues and profits while saving us all atremendous amount of time, money, and stress.”

Can we agree with him? In practice, I thinknot. I do agree that a trusted online identity management providerwould be a solid addition to our online lives, but I see no reasonto allow the social networks to usurp that role. Other socialnetworks (e.g., Hyves in the Netherlands) have taken on thisidentity validation function to facilitate payments and purchases.However, Dutch privacy law severely constrains the ability of Hyves(or any other entity) to use personal information without specificpermission, so Danish consumers have far more privacy protectionsthan those in the U.S. Experience suggests we in the U.S. should bevery cautious about empowering Facebook with that capability,because we have no defense against Facebook using all theinformation they have to their own advantage and for their ownpurposes.

The U.S. Commerce Department recognized the importance of identitymanagement in its recent report “NationalStrategy for Trusted Identities in Cyberspace.” This reportdoes not propose a government-operated identity program for theU.S., but rather, contends that the best solution would be one thatcomes from the private sector. Surely committed identityspecialists can craft a potential solution that reflects a respectfor individual privacy somewhat more designed to protect consumerinterests. I suggest we not surrender this powerful capability toFacebook simply because they want it.

Click here to read the TechCrunch piece: http://techcrunch.com/2011/08/01/facebook-real-identities-commerce/

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: DebitMerchant AcquiringMobile PaymentsPrepaidSelf Service and ConvenienceSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    ai financial

    Consumers Are Putting More Financial Decisions in AI’s Hands

    April 17, 2026
    cybersecurity frontier ai

    Cybersecurity Must Evolve as Frontier AI Fuels New Fraud Risks

    April 16, 2026
    isos thriving

    In Defiance of the Prognosticators, ISOs Are Thriving Again

    April 15, 2026
    agentic payments

    Beyond the Click: How Agentic Payments Are Redefining Global Financial Flow

    April 14, 2026
    instant payments fraud

    Instant, Irrevocable Payments Demand a Fraud Prevention Reboot

    April 13, 2026
    samsung p2p

    Making Zelle Work Better for Users—and Banks

    April 10, 2026
    fraud escalate

    As Fraud Escalates, Taking a Beat Becomes a Critical Defense

    April 9, 2026
    privacy open banking

    As Open Banking Fuels Interconnectivity, Privacy Matters More

    April 8, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result