Earlier today, Facebook (NASDAQ: FB) unveiled Facebook Payments to allow friends to send free friend-to-friend payments over the social network messages. This service can be seen as the direct response by the largest social media network in the world, all to the likes of Apple Pay and Samsung Pay, unveiled a few months earlier. It also shows how the financial sector is developing rapidly, all without much input from the older well-established companies in the sector recently.
The first time you send or receive money in Messenger, you’ll need to add a Visa or MasterCard debit card issued by a US bank to your account. Once you add a debit card, you can create a PIN to provide additional security the next time you send money. On iOS devices you can also enable Touch ID. As always, you can add another layer of authentication to your account at any time. The payment system lets you just tap a “$” button to send some of your friends money on iOS, Android, and desktop messenger applications, all with zero fees. Facebook Messenger payments will roll out first in the U.S. over the coming months.
European and Asian users will have to wait for Facebook to roll out the service to them. In accordance to recent developments in the sector, this serves as a reminder how quickly things can revolutionize in certain areas overall. This Facebook payment system will undoubtedly have a great argument for a choice between similar payment systems worldwide.
If Facebook can work out an agreement with European Union law makers, this could very well mean the payment system becomes one of the most popular money transfer systems out there. The zero fee approach is offset by companies paying a certain fee when payments are made with this system. Facebook may have a different approach to this aspect, but we believe this will be what the social network does in the future for this issue. While intended for friends, we can see a great deal of use by possible client to client transfers, but more importantly later we can expect this payment system to roll out for companies too.