Social media giant, Facebook Inc., owners of Facebook, Instagram and WhatsApp, yesterday introduced Facebook Pay, a payment solution exclusive to the three social media apps. According to the company, who made this known in a blog post, Facebook Pay is aimed at “providing people with a convenient, secure and consistent payment system.”
It would begin rolling out this week in the United States if America for fundraisers, in-game purchases, event tickets and person-to-person payments on select Facebook pages. Overtime, it would be introduced to more persons and countries.
This payment system will definitely rival those of traditional banking institutions and new fintech startups. But what differentiates it from those of traditional banking institutes and these new fintech startups?
They are free
Sending and receiving money on Facebook Pay. All you have to do it simply fund it using your debit card or Facebook gift card.
Not for anyone below 18
Well, this is a huge difference. Most banks in Nigeria have special bank accounts for kids and underage persons but Facebook Pay is just exclusively for anyone above the age of eighteen for one to use the service.
Must be friends with the person
Imagine not been able to send money to someone because you aren’t friends with the person? That bank will just lose customers. But not Facebook Pay. You have to be friends with the person before you send or receive money from the person.
With all these, fintech startups really have a fight on their hands. With over one billion persons on Facebook, WhatsApp and Instagram, Facebook Pay have a very big customer base.
Now, you may ask: How does it work?
Using Facebook Pay is definitely very easy. Simply go “Settings”. Click on “Facebook Pay” on the Facebook app or site. Then add a payment method. That’s all. Then, when the service becomes available on WhatsApp and Instagram, one can easily set up directly within each app.
Also, Facebook Pay supports most major debit and credit cards including PayPal and payments are processed in partnership with fintech companies like PayPal, Stripe and others all over the world. It is also noteworthy to state that the service is secured, with Facebook having processed more than $2 billion in donation since 2015. Added security features include the ability to use face lock and fingerprint lock to process payments
HOW TO MAKE AND RECEIVE A PAYMENT
Making a payment is as easy as sending a private message.
On the Messenger app, simply start a conversation with the friend, who is also the recipient of the money. Then, press the “$” button and add the amount and the money is ion its way.
On a desktop computer, do exactly the same thing as above: start a conversation and click the “$” button and the follow the process listed above. The convenience can’t be understated.
Receiving a payment is different. If someone sends you money, you will get notifications like a message. But if you don’t have debit card information, you cant accept the payment till you add one. Once this is done, the payment immediately reflects I your account. Facebook doesn’t withdraw money, but it may take your bank days for it you reflect.
What do you think? Would you try it out when it finally gets to your country?
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