Facebook has confirmed that it is set to test a new mobile payments product. According to a report on All Things Digital, the product would allow online shoppers to make purchases on mobile apps using their Facebook login information.

Sources who said they are familiar with Facebook's plans told the site the product will allow shoppers who have provided their credit card information to Facebook to make purchases on partnering e-commerce mobile apps without entering billing information.

Facebook will enlist Jack Threads, a flash-sale shopping site for young men, as its pilot partner. The test is expected to launch in the next several weeks.

The new product is seen as a potential challenger to digital payments giant PayPal. For the time being, the product is expected to focus on improving the mobile checkout experience, and not to delve into payment processing.

Learn more about in-app payments.