One of the most compelling options among the rising selection of digital payment options, Facebook Pay has earned a lot of attention in recent months. Born for the age of online sales, Facebook Pay gives customers a new way of selling and receiving money. However, there are still a lot of people asking, “How does Facebook Pay work?”
Most often, Facebook Pay is the service that people can use to send money between friends and family members – but it’s not limited to this alone. You can also access the benefits of Facebook Pay as a growing business.
Let’s take a closer look at this service.
What is Facebook Pay?
Facebook Pay is just one of the many payment options making transferring money online simpler than ever. Today’s customers want to be able to buy products, transfer money to friends and more, without having to visit a bank and talk to a professional.
Although it’s been around since 2019, Facebook Pay is still a relatively new concept to a lot of consumers and businesses. The Facebook Pay service is ready for sensational growth, with features available in the United States and in the UK at present. Facebook has identified a plan to roll out more of the Facebook Pay functionality around the world too.
Any Facebook user in an approved country can begin using Facebook Pay quickly and easily, just by heading into their Facebook Settings and clicking on Facebook Pay. You’ll need to enter a payment method, such as a PayPal account, credit card, or debit card to complete the setup. There’s also the option to use biometrics on your device or create a pin when making payments.
If you already have methods for making a payment on file, these will already be available for use with Facebook Pay. If you’re using Facebook as part of your sales strategy as a growing business, it would also make sense to look into this product as a growing business.
How Does Facebook Pay Work?
Like many new payment options, solutions like Facebook Pay can be quite difficult to understand. However, this service is much simpler than you might think once you get started with it. Working in a similar fashion to other third-party friend-to-friend payment options, Facebook Pay is available only to people who use Instagram, Facebook, WhatsApp, and Messenger, and makes transferring money simple.
Facebook advertises Facebook Pay as a secure and easy way to transfer payments around the Facebook ecosystem. Once you sign up for Facebook Pay, you provide Facebook with access to your credit or debit card information, which means you don’t have to retrieve your card whenever you’re making a purchase on a Facebook product, or sending money to friends.
To use the service, you simply head into your settings and enter the card or account information you want to associate with Facebook Pay. From there, you can send money, pay for things, or donate within the Facebook apps, using extra security features if you choose. Facebook Pay supports activities like:
- Purchases on Instagram, and Facebook
- Messenger and WhatsApp payments
- Friend-to-friend transactions
- Donations to fundraisers and charities
- In-app gaming purchases
- Paying for event tickets
Facebook Pay is only applicable for those who already have an account within the Facebook environment, because the service is owned by Facebook. However, you don’t necessarily need a Facebook account, as long as you’re set up with WhatsApp, Instagram, or Messenger.
Facebook Pay Security and Costs
Fees and security are among the biggest concerns facing anyone who might want to use a new service like Facebook Pay. The first thing you should know is you don’t need to pay any additional fees to send or receive payments through Facebook Pay.
- Anti-fraud monitoring: Instant alerts if any evidence of fraud appears in your account
- Excellent customer support: You can report any unauthorized transactions you’re worried about by live chat from 6am to 6pm
- Data security: Although your payment data is stored by Facebook pay, it’s encrypted at rest and payment methods aren’t shared with sellers and buyers without your consent.
- Verification: You can further secure your account by using the biometric features on your devices, like fingerprint scanning, or you can set a PIN.
- Notifications: You’ll instantly be informed when any transactions go through.
- Privacy: You don’t have to share details on your transactions to news feeds.
When Should You Use Facebook Pay?
Facebook Pay represents a simple and convenient way to connect your bank account or credit card to your social media networks. If you’re using Facebook marketplace, or you use Facebook and Instagram to pay for purchases, Facebook pay is an excellent investment.
Anyone who uses Facebook as their social media tool to pay for things online, donate, or send money to friends can benefit from using Facebook Pay. You can access this service:
- When you’re selling on Facebook: If you want to sell things on Facebook, like handmade items, or products that you no longer want, you can use Facebook Pay to help with this. You simply post the information for what you’re hoping to sell on Facebook, and let your friends and followers know they can pay you through Facebook Pay. Your contacts can use Facebook Messenger to place an order, or post on your Facebook pay, then use Facebook pay as their preferred payment method.
- When you’re buying on Facebook: Most people are used to using online payment options today. Products like Venmo, Libra, and Apple Pay are common around the world. If you’re on Facebook and you see something you want to buy on the Marketplace, or via a Facebook store, Facebook Pay can be a great option. Message the seller to find out if they accept Facebook Pay for ecommerce, and you can send a payment directly, without any fees.
- If you’re donating to a fundraiser: You can use Facebook pay to checkout when you’re buying something from a Facebook store, or when you’re sending money to sellers. However, you’ll also have the option to send money to fundraisers and worthy causes this way too. Once you’ve signed up with Facebook Pay, your account settings will store your payment information, so you can send money to non-profits and friends raising money without any security issues or delays.
- If you want to send money to a friend: If you’re keen to avoid getting your MasterCard out when you need to pay some money to a friend, Facebook Pay is a great choice. You can send cash to your friends through the instant messaging service they use to remind you that you owe them for lunch. Simple click into the messaging app and use the options section to access Facebook pay. You can even send money through this payment service before you’ve left the restaurant.
How to Send Money Via Facebook Pay
The good news for anyone interested in using Facebook Pay is that it’s extremely easy to use. All you need to do to get started is sign up for the service. You can do this within your account settings. Just click on the triangle at the top right of your Facebook app screen and click on Settings.
Scroll until you see the Facebook Pay tab. You can also find this setting in the “Orders and Payments” section on Instagram. The great thing about Facebook Pay is that once you’ve set up your information, you can use your payment system instantly. Transactions are processed immediately 99% of the time, but you may have to wait up to 24 hours. This is similar to using something like PayPal or Stripe, but it may be faster than sending money via Visa.
When you’re receiving money via Facebook Pay, you’ll have a couple of options. If you’re only selling to your contacts, you can ask for payment via the Facebook messenger app. Start a message with your friend, ask them to tap the “add card” option in the message. Facebook will guide your contact through setting up the payment system for the first time.
Can You Use Facebook Pay for an Online Store?
If you’re thinking of launching an online store with its own social media following, you can accept payments through Facebook Pay – but it’s not recommended as a solo solution. While you can connect with customers through Facebook Messenger to access this functionality, you’re not going to get all the features of other payment systems with Facebook Pay.
Once your buyer sends payment via feedback, you can wait up to 24 hours for your cash to come through to your bank account. You’ll also struggle to get the same transaction history features, automatic payment history features and invoices you’ll need to keep a full and accurate collection of receipts for your company.
Ultimately, Facebook Pay is designed more as a solution for people who want to make one-off purchases online. The service is ideal for things like game purchases, or buying things on the Facebook marketplace, but it’s not the most advanced solution for eCommerce stores.
If you do add Facebook Pay as an option for your store, it’s best to make sure other payment options are also available. The more payment methods you offer, the more likely it is that you’ll attract the attention of a wide range of customers.
Is Facebook Pay a Good Service?
Facebook Pay is a simple solution to sending money online to friends, family members, and even businesses or salespeople. If you’re already comfortable with making payments through tools like Apple and Google Pay, then you should feel right at home with Facebook Pay. Although you shouldn’t expect to be able to access all the advanced features of some other transaction tools, like the ability to pay for products with cryptocurrency.
Facebook Pay can be a convenient way to save time on finding your credit card and bank account details when you’re shopping on social media. You also get the extra benefit of knowing your transactions are secured, particularly when you can set passwords with your device’s biometric information.