After months of speculation Facebook has finally announced that you will soon be able to use your Facebook Messenger application to send cash to your family and friends.
Last June Facebook recruited PayPal president David Marcus to assume control over its messaging products division. The move at first appeared puzzling as Marcus has an acceptable foundation in payments, however with the most recent news everything is presently beginning to make sense.
At the point when addressed about the hire an earnings call with analysts, Zuckerberg said “after some time there will be some overlap between that and payments… the payments piece will be a piece of what will help drive the general achievement and help individuals share with one another and interact with businesses.”
To use the service, Facebook clients will first need to connection a Visa or MasterCard or debit card to their account and create a PIN. If you are an iOS user and have one of the new iPhones or iPads that come with a finger print reader you can choose to use that rather than the PIN. To send cash, clients will tap on the “$” symbol on the screen and enter the amount they want to send.
In a blog entry announcing the new feature of its Messenger application, Facebook focused on the security features of this new gimmick. “We use secure systems that encode the connection between you and Facebook and 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 buy action to help keep accounts safe.”
Facebook Messenger reached to 500 million monthly active clients in November 2014, with rapid growth due in part to the decision of the Facebook giant to remove the messenger features from its main applications.
Facebook Messenger isn’t the only service that allows you to send cash, then again. In November 2014 Snapchat unveiled a feature known as Snapcash that allows you to send cash to your friends using their service. The service is very much alike to Facebook’s upcoming service requiring you to connect a debit card to your account first. Facebook has emphasized that their new payment features were developed entirely in house.
As of now, Facebook says it processes more than 1 million transactions every day on their site, however while commercial income has grown, payment income has remained flat. The social media giant hopes this will help invigorate the payment market on their service so they can grow transaction volume and payments in the coming months.