Facebook Pay is a service that allows users to purchase products on the Facebook platform. Users who receive an offer via their Facebook Newsfeed can pay for it with credit card or PayPal in just one click. The user does not go through separate registration pages; the order confirmation takes place right within Facebook’s interface. There’s no need to register on the partner’s website, which allows for quicker transactions.
The service is typically used by online retailers and developers of applications on Facebook who would like to monetize their products or services. Thanks to Facebook Pay, any user can pay for a service without leaving the social network, thus making the transaction process easier and saving users time.
Facebook only charges a fixed commission of 7% on each transaction, while credit card companies and PayPal take about 3%. During the checkout process, users only need to enter their phone number. After an SMS is received with a verification code (or 2-factor authentication), the user confirms their purchase and pays by clicking Facebook’s built-in payment system.
The advantage is obvious: no need to remember passwords for each separate site (which also increases the security of your account, since you don’t need to use the same password everywhere).
Also, Facebook uses SSL certificates which provide protection not only when transferring data but during payment processing as well. With this method even if a hacker intercepts the data which you are sending to Facebook, they still will not be able to steal your password or credit card information due to the secure encryption.
Another big advantage is the fact that Facebook uses a system known as “social graph”, which means that all users of Facebook, even those who don’t have any personal account with the social network giant, can use the service. If you don’t have a personal account with Facebook, your name on the system will be your email address.
In order to buy something on Facebook via Pay, at least 50 friends from your friend list need to register on this service. If not, then in some cases a user will have to enter their phone number during the purchase.
The first Facebook Pay transactions, which were initially only available for US users on a trial basis, were launched at the beginning of 2014. The service has been used by thousands of online stores and developers around the world who have seen more than 100 million authentications (authorizations) via credit card or PayPal in just 4 months. In the US, all transactions are processed via PayPal’s payment system.
The transactions abroad are made using a partner from Germany called Adyen. Facebook aims to have at least 1 billion active users in 5 years, so it can become a global leader in online retail and commerce (the company currently has more than 1 billion active users).
It should be noted that Facebook Pay is not a replacement for PayPal. The two systems are complementary, because each one has different advantages and drawbacks. In this way, you can use both payment systems to pay for goods or services on the Internet.
In order to ensure safety in transactions, Facebook uses their own SSL certificates which provide protection during both data transfer and payment processing.
Facebook Pay is often used by online stores and the developers of applications on Facebook who want to make money. The service allows customers to pay for goods or services with just one click, without going through several additional pages. Users do not have to register on a partner’s website, which reduces the time spent on the purchase.
Facebook only charges a fixed commission of 7% on each transaction, while credit card companies and PayPal take about 3%. During the checkout process, users only need to enter their phone number. After an SMS is received with a verification code (or 2-factor authentication), the user confirms their purchase and pays by clicking Facebook’s built-in payment system.
