Facebook has announced that its users in the US can make payments via its messenger service in a move that is said to open up the social platform to users looking to make Person to Person (P2P) transfers.
The technology is underwritten by the regular bank transfer system. Users will be able to enter in their credit card details and use this card to accept and send payments. Like any other transaction, the payment will take one to three business days to complete.
Facebook is promoting its network as trusted and reliable, noting that the company has had a payments processing system since 2006 for game players and advertisers.
‘We use secure systems that encrypt the connection between you and Facebook as well as 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,’ the company said via its news blog.
‘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 strategy aligns well with previous statements by company CEO Mark Zuckerberg, who was quick to note that the company will continue to leverage off pre-existing payment infrastructures, as opposed to becoming a critical player:
‘Payments is an important part of the online business ecosystem, but we’ve traditionally thought about this as something that we’re going to partner with other companies on to enable great solutions, rather than trying to compete and do it as a business ourselves.’
The biggest loser in Facebook’s first foray into P2P transferring are the retail banks. In time Facebook could move many of the instances where consumers login to send money from their banking app to its platform. Overall this would heavily impact engagement levels and have traditional banking outlets working to remain relevant. OCM.
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