Looks like good news for Facebook users as the social networking giant announced a convenient way to send and receive money in the Facebook chat app.
In an announcement on Tuesday, March 17, Facebook revealed that American users of its Messenger app can now securely and conveniently send and receive money by linking their debit cards to the service and use it to message money to one and another just like they send text or a photo.
According to PCMag, after installing the new payment function, United States users can simply start a conversation with a friend, tap the "$" icon, and enter the amount they want to send. Click "Pay" in the top right and add their debit card details in order to complete the transaction.
Users on the receiving end of the deal need to simply open the message, tap "Add Card" to insert their payment information and accept the money.
The free feature is slated to arrive over the coming months in the United States to Messengers on iOS, Android and the desktop. There was no mention of Windows though, ComputerWorld reported.
Besides PayPal providing way for people to send each other digital payments, China's WeChat messenger also has the function. With the feature, the social networking giant becomes a competitor amongst a growing number of players in what is known as peer-to-peer payments.
TheNewYorkTimes noted that according to analysts, if the payment system succeeded, Facebook would even extend it other types of purchases, like consumers buying of products directly from advertisers.
According to Robert Peck, an Internet analyst with SunTrust Robinson Humphrey, the ace social networking service, Facebook could use this as a back door to get people's debit cards to enable the buy button.
PCMag noted that users' first Messenger dealing will require a Visa or MasterCard debit card issued by a U.S. bank to their account along with a PIN to provide additional security. For ease of use, Apple iPhone users can enable Touch ID. Facebook offers additional layers of authentication, and this can be easily added at any time.
Transfers are made instantly. That said, with other deposits, funds may take up to three business days to become available, depending on user's bank. Facebook already processes over 1 million transactions daily and handles all payments processed on Messenger, the company said.
Facebook noted that incorporating security best practices into their payments business has already been a top priority. The social networking service said, "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."
Facebook added that they use layers of softwares as well as hardware protection that meet the highest industry standards. In addition, these payment systems are kept in a secured environment that is set apart from other parts of the Facebook network and that receives additional monitoring and control.
In order to keep accounts safe, a team of anti-fraud specialists even monitors the system for suspicious purchasing.
