Facebook launches a new payment system today, appropriately named Facebook Pay. It will be available on Facebook, Messenger, Instagram and WhatsApp, and it is designed to facilitate payments on Facebook's popular social networks and apps. You can use Facebook Pay to send money to friends, shop for goods or even donate to fundraisers. The service will be separate from Facebook's new Calibra wallet and the Libra network, and it is "built on existing financial infrastructure and partnerships," according to the company.
Facebook is planning to start rolling out Facebook Pay on Messenger and Facebook in the US this week. It will initially be available for fundraisers, person-to-person payments, event tickets, in-game purchases and some purchases from sites and businesses operating on Facebook's Marketplace. "Over time, we plan to bring Facebook Pay to more people and places, including for use on Instagram and WhatsApp," explains Deborah Liu, Facebook's vice president of marketplace and commerce.
Facebook Pay will be available in the settings section of the Facebook or Messenger apps and will support most debit and credit cards and PayPal. Facebook uses Stripe, PayPal and others to process these payments.
Facebook does not reveal exactly when this payment system will be available on all its apps, nor when it is to be launched internationally. Facebook Pay comes just weeks after a large number of payment companies dropped out of Facebook's Libra project. PayPal, which supports Facebook Pay, was one of the first companies to distance itself from the Libra Association, the nonprofit organization that oversees the creation of cryptocurrency and its rollout.
Every major American payment processor has now left the union, and it has left Facebook the daunting task of convincing governments that Weight is an alternative, just when trust in Facebook is at its lowest possible time. This does not prevent Facebook from launching a more traditional payment system today.
"Facebook Pay is part of our ongoing work to make commerce more convenient, accessible and secure for people on our apps," says Liu. "We will continue to develop Facebook Pay and look for ways to make it even more valuable to people on our apps."