When you chat with friends about settling debts or splitting the bill, Facebook doesn’t want you to have to open another app like PayPal or Venmo to send them money.
So today it unveiled a new payments feature for Facebook Messenger that lets you connect your Visa or Mastercard debit card and tap a “$” button to send friends money on iOS, Android, and desktop with zero fees. Facebook Messenger payments will roll out first in the U.S. over the coming months.
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♦ The coming peer-to-peer payment system from Facebook should be a good thing for consumers. It will help keep Paypal from continuing to add unnecessary fees onto payment transactions as we can see that they love to do. Facebook is mainly creating this friend-to-friend payment platform to keep us on their website so that we can remain consumers of their ads, they don't have a need to monetize the payment platform. Keeping people from leaving to make payments offsite will pay off in other ways for the company. Facebook’s free p2p payment service will undercut PayPal’s 2.9 percent plus $0.30 fee per transaction from debit cards.
♦ Facebook's messenger payment platforms will only be available in the U.S. in the early going but may be opened up internationally if all goes well. The payment system would definitely help migrant workers send money back home without the high transaction fees that are required as of right now. But it's yet to be seen if this option will become available.
♦ The Facebook peer-to-peer payment feature will not allow the use of credit cards because of the fees that the use of them would bring with it, Mastercard and Visa debit cards will be the only options. Facebook will not hold the money, the funds will be sent directly from one friend's account to the other, although the recipient's bank may take a few days to process the transaction and make the funds available.