Facebook Finally Launches Peer-To-Peer Payments Through Its Messenger App

March 19, 2024 by

Image credit: Kārlis Dambrāns

Facebook users can now send and receive money from their friends through the official Messenger app.

The feature will be made available for US-based individuals in the coming months on the following platforms: iOS, Android, and desktop.

“We know that conversations about money are happening all the time. We realized that there were all these conversations [on Messenger] that were forced to go somewhere else in order to actually finish. You had to go to another platform to actually pay another person,” said Steve Davis, Facebook product manager.

Unlike other companies, Facebook offers its payments services without any fees. To enable transactions, users are required to link a Visa or MasterCard debit card to their account. Sending money to a friend starts with tapping or clicking on the dollar-sign icon in the app.

After entering the desired amount, the sender confirms the transaction by hitting “Pay” at the top of the screen. Recipients who do not have a card attached to their account can still take part in the service. In such cases, Facebook will hold the money until the individual completes the setup process.

Facebook ensures all transactions and sensitive payments information are encrypted. A team specializing in anti-fraud regulates the database, and the systems facilitating the transactions are also closely monitored.

Experts say the introduction of P2P payments on Messenger could pave the way for some serious money-making opportunities in the future. Facebook could choose to extend such capabilities to advertisers and brands, allowing consumers to purchase products directly from ads or business pages.

According to Mike Ni, CMO and SVP of Products at Avangate, “Facebook’s recent announcement reflects a key investment in their monetization of the network value they create. Beyond trying to take transactional revenue, Facebook’s entry to peer to peer payments becomes at its simplest, an additional convenience, reason to use, and differentiator against competitive messenger apps.”

Furthermore, such features could also be used by organizations that wish to receive donations in real-time for ongoing campaigns.

Robert Peck, SunTrust Robinson Humphrey internet analyst, mentioned, “Facebook could use this as a back door to get people’s debit cards to enable the buy button.”

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