Facebook announced on Thursday it's expanding its online retail business with its latest product, the Facebook Gift Card.
The news comes on the heels of Facebook's better-than-expected earnings report on Wednesday, and CEO Mark Zuckerberg's comments about the social media giant's foray into the retail business. (Read More: Facebook Now TRULY a Mobile Company, Beats Expectations.)
In the earnings call Wednesday night, Zuckerberg said Facebook was still trying to figure out its gift and online retail business. He also made a point to moderate expectations, saying online retail and other new experiments like Graph Search won't impact Facebook's bottom line any time soon.
Facebook first moved into e-commerce last quarter with 'Gifts,' a tool that allows users to give physical presents like cupcakes, wine or teddy bears. (Read More: Facebook Gives Gifts, Takes Away Vote.)
Here's how its latest gifts product works: Users pick a friend they'd like to send a gift card and can select from a range of retailers, including Jamba Juice, Olive Garden, Sephora and Target. Once the card is purchased, the friend is instantly notified. A few days later, he or she receives the card in the mail.
The cards are reusable and can hold multiple balances from different retailers. For example, if you are gifted $20 to Jamba Juice and a week later a different friend gives you $50 to Sephora, the new balance automatically shows up on your card. Facebook users can view their balance through Facebook and can monitor balances with mobile notification.
(Read More: Facebook Stock Holds Risk: Blodget.)
We'll see if Facebook can establish itself as a go-to-player in online retail—the more people who hand over their credit card numbers, the more likely they'll spend money on Facebook down the line.
—By CNBC's Julia Boorstin; Follow her on Twitter: @JBoorstin