Facebook has created an official subsidiary to handle payments.
A spokesperson for Facebook confirmed the move in an email, saying, “As is common in many company structures, we have established a subsidiary called Facebook Payments Inc. that helps handle payments to developers related to our Facebook Credits program.”
Some speculate that the subsidiary could expand beyond Credits, simply because the incorporation documents use very general terms about Facebook Payments’ business plans: “The corporation is organized for the purpose of transacting any or all lawful business.”
Facebook Credits has already extended somewhat beyond that social network through several applications, including programs that convert the currency for use on other websites, and stored value cards sold by a growing number of retailers.
It’s not too great a stretch of the imagination to continue the card theme into a whole point-of-sale payments business extending offline and online — which seems all the more possible given how the Facebook Payments business continues to register in a growing number of states.
The Facebook Payments subsidiary has incorporated under Florida state law, and has three of Facebook’s top executives as directors: Chief Financial Officer David Ebersman, Vice President of Partnerships and Platform Marketing Dan Rose, and Vice President and General Counsel Ted Ullyot.
The subidiary’s president and chief executive is Prashant Fuloria, according to a “certificate of authority” issued March 1 by the Idaho secretary of state. That document lists the chief financial officer as Jas Athwal.
A job listing for a controller for the subsidiary that reportedly appeared on Facebook’s careers page no longer shows up, but we don’t know whether that means the job has been filled or simply that the recruitment for that position might take another direction.
Readers, what do you expect to see from Facebook’s incorporation of a payments subsidiary?