Facebook Launches P2P Payments, Denies ‘Building Payments Business’

Thursday, March 19, 2015

Without a doubt, mobile payment is hot topic these days. Google, Facebook, Apple, Samsung, are only a few that have stepped into the mobile payment battle, determined to create the next killer mobile wallet and payment system.

The latest move came from Facebook, which unveiled Tuesday a new payments feature that allows users to send money through its messaging app, Facebook Messenger. The feature, which is expected to roll out in the US over the coming months, is defined as “a more convenient and secure way to send money between friends.”

Users simply need to link their Visa or MasterCard debit card and tap the “$” button to send cash to their contacts on iOS, Android and desktop for zero fees.

Facebook, which claims to be processing over 1 million transactions daily, is putting security as its top priority. The company said:

“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.”

The social media giant, which has been in “a good partnership” with PayPal since 2008, started to change its stand in 2010 when it announced the Facebook Credits currency.

Commenting on Facebook Messenger’s new feature, a PayPal spokesperson told Techcrunch that “it does have similar technology and does a similar thing to what Venmo does,” while avoiding the term “competitor.”

Source: CoinTelgraph (link opens in a new window)

Categories
Entrepreneurship
Tags
digital payments, mobile money, social business