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Electronic cables are silhouetted next to the logo of Facebook in this September 23, 2014 illustration photo in Sarajevo. Reuters/Dado Ruvic

John Collison, Stripe co-founder and President, talks about the possibility that the social media giant might expand its business by plunging into the e-commerce business. At the Web Summit 2014 held in Dublin in Ireland, Collison observed that people spend much of their time dwelling on social networks, which opens very big opportunities for merchants.

People who log-in to their Facebook or Twitter may chance around some items that they want to purchase that very moment. But in reality, users would have to do several clicks, transfer to other websites and go through several steps in order to complete a transaction. Users will be interested in doing their purchases while logged in to their favorite social media account provided that the hassle of online payments will be lessened.

With the traffic on social networking sites, merchants will find it very easy to sell. This is where Stripe's business comes in. E-commerce can be a vital part in the expansion of social-networking businesses such as Facebook and Twitter. These sites are basically funded by the large sum of advertisements that are being placed on them.

Collison's San Francisco-based company has a great deal of interest with this kind of expansion. The company earns by helping clients with financial transactions, online and in apps. Up on their sleeve are giant partners like Apple Pay and the Alipay system of the Alibaba Group.

The idea of incorporating e-commerce business with Facebook shows huge business potential. Emarketer, an analyst firm estimates that within the year global businesses sell consumers $1.47 trillion worth of goods and services. The estimate shows 20 percent increase based on last year's sales, CNET reports.

According to Wall Street Journal's interview with executives of a Russian e-commerce group, they feel social networking sites may not work well with an e-commerce solution. The Russian executive said that customers are not yet ready to purchase through these sites. For them social network is more of a customer relationship management tool rather than a sales tool.