What is Facebook Pay?
It makes paying and sending money as easy as inserting an emoji into a text message.
Facebook’s Libra cryptocurrency project may be struggling but another Facebook payments project has been launched and looks set to change the way we pay online.
Facebook Pay provides users with an easier way to pay or transfer money through Facebook, Messenger, WhatsApp and Instagram.
With Facebook Pay, you enter your payment method (eg: debit card details) and this information is kept securely for you. Whenever you want to buy something, make a donation or payment or transfer funds to another person, Facebook Pay remembers your details and enables the transfer of funds.
Facebook Pay has been launched in the USA for fundraisers, in-game purchases, event tickets, person-to-person transfers through Messenger and some purchases on Facebook Marketplace. Facebook promises to roll out Facebook Pay to more countries and with more functionality in 2020. Australian users can expect to start seeing Facebook Pay functions in early 2020.
How does Facebook Pay work?
With Facebook Pay you will be able to add your preferred payment method (eg: debit card) once. Then, when you want to make a transaction in Facebook, you can use the Pay function instead of re-entering your payment information each time.
When installed, Facebook Pay will place a “$” button in the Messenger message composer, next to sticker and emoji buttons. When tapped the button will enable a payment to the person receiving the message.
You can set up Facebook Pay app-by-app or choose to set it up for use across all your apps within Facebook. Facebook has reportedly decided against supporting the use of credit cards with Facebook Pay because users could be charged additional fees.
Facebook Pay will work with Visa, Mastercard debit cards as well as PayPal. Facebook says all payments will be processed by PayPal, Stripe and other large established payments companies.
Facebook Pay is built on existing online financial infrastructure and partnerships and is completely separate from Facebook Libra and the associated Calibra wallet. Facebook Libra is a proposed global cryptocurrency developed by Facebook with Calibra as the wallet for keeping Libra.
Facebook Pay is not a currency. Facebook Pay is a method for storing your payment information so you can easily buy goods and services as well as send and transfer money in the Facebook, Instagram and WhatsApp online environments.
Is Facebook Pay safe and secure?
Facebook says it uses “advanced technology to keep payment information secure.”
Facebook Pay promises to:
- Monitor purchases to detect unauthorized activity.
- Encrypt your payment card and bank account details.
- Notify you when we detect unusual activities.
- Allow you to add a PIN or use your phone’s fingerprint or facial recognition technology to add security to your account.
Facebook says transaction and financial information in Facebook Pay is “kept in a secured environment that is separate from other parts of the Facebook network.” Facebook says that this information gets additional monitoring and control from a specialised anti-fraud team.
What are Facebook Pay fees and charges?
Facebook pay does not charge fees or commissions to users. This is a free service provided by Facebook to make spending and transferring money on Facebook easier and faster.
The maximum amount of money you will be able to spend or transfer via facebook Pay is $9,999.00.
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