Facebook to offer location-based discounts

Social networking site steps into world of commerce

Social networking site Facebook is expected to launch a location-based mobile discount service for its users in the UK.

The site is expected to announce Places Deal, a service that allows local businesses to offer users deals when they check in to their ‘place' on Facebook via their mobile, according to The Telegraph. The discounts will be offered by merchants, rather than Facebook.

A similar service went live in the US last November, and is today expected to be rolled out to the UK and Europe.

"You'll see a few different types of deals: individual deals for a discount, free merchandise or other rewards; friend deals where you and your friends claim an offer together; loyalty deals for being a frequent visitor to a place; and charity deals where businesses pledge to donate to a cause when you check in," Jon Fougner, a principal on Facebook's product marketing team, explained at the time of the US launch.

The move signals a growing trend towards consumers using mobile payments instead of credit cards, with Orange set to become the first operator in the UK to allow customers to pay for goods with a swipe of their mobile phone. Apple's forthcoming iPad and iPhone updates are also expected to include a mobile payments feature to replace cash and cards.