It's no secret that Facebook wants to be a big marketplace player. Now, with Facebook Pay, they are going to be officially in the payment provider industry. The payment service is starting this week on Messenger and Facebook and purchases can be made from select pages and businesses on Facebook Marketplace.
The plans for Facebook Pay don't end there. The social media giant is going to make the service available to more people through including it for use on WhatsApp and Instagram. Internetretailing.net reports that Facebook Pay also supports most major credit and debit cards as well as PayPal. Payments are processed in partnership with companies like PayPal, Stripe and others all around the world.
The Whys & Hows
Built on existing financial infrastructure and partnerships, Facebook Pay is separated from the Calibra wallet, which will run on the Libra network. Facebook wants to be more of an e-commerce platform, getting more paying customers on the website, and a payment service will accomplish just that.
In a statement, Facebook had the following to say:
“Facebook has offered trusted payment experiences since 2007 and we’ve processed more than $2 billion in donations alone since we launched our first fundraising tools in 2015. With Facebook Pay, we’re continuing to invest in security. We designed Facebook Pay to securely store and encrypt your card and bank account numbers, perform anti-fraud monitoring on our systems to detect unauthorized activity and provide notifications for account activity. You can also add a PIN or use your device biometrics, such as touch or face ID recognition, for an extra layer of security when sending money or making a payment. Facebook does not receive or store your device’s biometric information.”