Facebook officially announced on Tuesday (12) the Facebook Pay: US users can register a credit, debit card or PayPal account to make payments within the social network and Messenger. In the future, the service will be expanded to more countries and applications, such as WhatsApp and Instagram. This is a separate initiative from the Libra cryptocurrency, which will remain in the Calibra wallet.
Basically, Facebook Pay saves your card details so you don’t have to enter them every time you make a payment through the social network. If the user prefers, he can only connect the PayPal account, which will be responsible for the transaction.
You’ll be able to view transaction history, manage payment methods, and update settings. If the user has a problem, he can count on support through chat.
Initially, Facebook Pay will be available only in the US, within Facebook and Messenger. You will be able to send money to contacts, make donations, buy tickets to events, conduct in-game transactions, and purchase products from selected companies on the Marketplace.
In the future, the digital wallet will be expanded to more applications. We saw that a beta version of WhatsApp already brings references to Facebook Pay. When this is available on WhatsApp and Instagram, it will be possible to configure it directly in each application – and it will not be necessary to have a Facebook account.
Facebook will use data to personalize ads
Facebook Pay stores your card and bank account numbers in encrypted form. It is possible to add another layer of protection by configuring a PIN or using biometrics (digital or facial recognition). The company does anti-fraud monitoring to detect suspicious activity.
According to Facebook, only the user himself will be able to see the transactions made through Facebook Pay; your payments and purchases will not be shared with friends or appear in the news feed.
But you can bet that your financial transactions will be used to personalize ads. “The actions you take with Facebook Pay can be used for purposes like providing more relevant content and ads… for example, if you buy a baseball glove on the Facebook Marketplace, you may see an ad for a baseball bat”, explains the company.
Facebook makes it clear that Facebook Pay has nothing to do with the cryptocurrency Libra: it “uses existing financial infrastructure and partnerships, and is separate from the Calibra portfolio”.
More and more companies are turning to financial services to diversify their businesses: for example, we have the recently announced Uber Wallet, a digital wallet that can be used with a cashback debit card. There is also Uber Pay, an API for third parties to integrate their means of payment with the Uber app.
With information: Facebook.