Facebook Plans to Enter into the World of Mobile Payments

Social networking company, Facebook is now looking to enter into the world of mobile payments, as confirmed by Stanford computer science student Andrew Aude via a Twitter Post. Aude discovered a feature of Facebook Messenger by using the iOS and Mac OS X hacking tool Cycript, that allows users to send money with their debit card via their mobile phone.

The feature is expected to be live in the US in next few months, similar to the Square’s Cash app, it works only for debit card system, not for credit card and bank accounts. Initially, feature allows only one-to-one transaction, “In the short term, we will only support single payment attachment. Multiple payment attachments will be supported in the future,” added Aude.

See Also: Are Mobile Payments really the Future of Transactions?

As TechCrunch reported, Andrew stated that, “based on my understandings of the debit interchange rates, each transaction will cost Facebook roughly USD 0.40 to USD 0.50 (Durbin swipe fee + ACH fee). The app didn’t mention a fee to send, so it’s probably free, at least initially. Over time they might add a USD 1 fee.” 

Last month, the technology company Apple, has unveiled its new payment system ‘Apple Pay’ along with the new iPhones. The other players also included in this space are Sephora, Opentable, Starbucks, Disney, Uber, Staples etc.