Send Money on Facebook

Send Money on Facebook with Paypal and the Send Money App!

We called it at the beginning of 2011.

We thought it would be named FaceBucks and be run entirely within the Facebook framework- like a brand new world currency.

Alas, no.

It turns out that the solution comes in the form of the new Send Money application from the leaders in online cash transfers and trusted payment gateway, Paypal.

“The PayPal and Facebook infrastructure have now merged,” PayPal’s Anuj Nayar says. “This is another way to personalize the act of giving money.” While there are several ways to pay with PayPal via Facebook, this is the first app to enable peer-to-peer payments via Facebook and PayPal. And because it’s a peer-to-peer transaction, there is no transaction fee, though PayPal’s regular limits and international fees still apply.

“Sending money, person to person, is free,” PayPal Senior Product Marketing Manager JB Coutinho said. “If it’s funded by a PayPal balance or linked to a bank account, it’s free.”

And while the primary aspect of the Send Money app is its enablement of transactions across the world’s largest social network, the ecard aspect is being emphasized as well. PayPal was quick to point out that more than 500 million ecards are sent every year, and that’s why PayPal is offering dozens of choices for everything from birthdays to congratulations.

We can see the app really taking off. Users who see on Facebook that it’s a friend’s birthday can quickly fire up the app and send a card and some cash within a few minutes. The app is just as useful for things like lottery pools and reimbursing friends for lunch. It’s a big step toward making social payments a reality.

( from an article by Ben Parr at mashable.com )

What is it good for?

Businesses can benefit greatly from using the PayPal Send Money app on Facebook to facilitate and streamline many everday business transactions:

Refunds

Customers who return goods, or are owed a refund for services can be offered the option to receive the money via PayPal.

Rebates

Businesses could use PayPal Send Money to transfer funds to customers for rebates. It is more efficient and cost-effective than mailing a paper check, and customers will appreciate receiving their money faster.

Awards

Companies often pay small awards as incentive for users who participate in polls or surveys. As with rebates, these small amounts could be paid much faster, and with less expense by transferring the money via PayPal Send Money.

PayPal payments made directly from a connected bank account, or using funds stored in PayPal are free. There is a small fee for payments made through other methods, such as with a credit card.

( via Tony Bradley, PCWorld.com )

Sky’s the Limit

This is hugely exciting news for any online business and all online marketers in particular- the concept had to come to life. There are so many uses and applications, niches to be explored and new ways of interacting that are made possible through technologies like these. Just think of the opportunities!

There are over 800 million users on Facebook planetwide, and half of them spend at least some ( 🙂 ) time on the network daily. They in turn have an average of 100 + friends each.

We predict that the floodgates will now open up and similar apps will emerge one by one- each with it’s strengths and weaknesses, much like the emergence of payment gateways themselves.

It’ll be interesting to see how each deals with various exchange policies as they expand and gain ground, and at the same time it’ll be interesting to see how governments and exchange controls respond to the emerging ‘world currency’.

Facebucks – here we come… 🙂

Access the app here – Send Money

Q: Will you send cash using Facebook?