Facebook Messenger Payments
How the payment option is set to look.
Facebook Inc (FB) said it is adding a new feature to its messaging app that allows friends to send and receive money through it.
In June, Facebook poached PayPal’s president. Now the social networking giant is going after its business.
On Tuesday, Facebook announced that users in the US will soon be able to employ make payments by their online messaging service, Facebook Messenger. Only in September David Marcus departed payment company Paypal to become vice president of Paypal under CEO Mark Zuckerberg.
This is certainly a business Marcus knows very well with PayPal also managing Venmo, one of the leading peer-to-peer mobile payment companies.
Facebook announced on their website on Tuesday:
“Today we’re adding a new feature in Messenger that gives people a more convenient and secure way to send or receive money between friends. This feature will be rolling out over the coming months in the US.
It’s easy and free.
To send money:
- Start a message with a friend
- Tap the $ icon and enter the amount you want to send
- Tap Pay in the top right and add your debit card to send money
To receive money:
- Open the conversation from your friend
- Tap Add Card in the message and add your debit card to accept money for the first time
The money you send is transferred right away. It may take one to three business days to make the money available to you depending on your bank, just as it does with other deposits.”
Facebook has actually been a payment processor since 2007 taking payments for games and advertising campaigns. The feature will be free and rolled out to users in the United States in the coming months with Android and Apple iOS operating systems.
Security will be at the top of the agenda as users must link their Visa or Mastercard debit card to their messaging account. Facebook will be allowing users to use PIN’s or enable Touch ID’s if they have a smart phone.
“Incorporating security best practices into our payments business has always been a top priority. We use secure systems that encrypt the connection between you and Facebook as well as your card information when you ask us to store it for you. We use layers of software and hardware protection that meet the highest industry standards. These payment systems are kept in a secured environment that is separate from other parts of the Facebook network and that receive additional monitoring and control. A team of anti-fraud specialists monitor for suspicious purchase activity to help keep accounts safe.”
Most people are unaware that Snapchat launched a similar service last November, under the name Snapcash. Snapchat partnered with online payments company Square to allow Snapchat users to link their debit cards to their account send money to friends through a conversation.
