You know that friend constantly borrowing $5? Well, thanks to the ever-increasing invasiveness of modern technology that friend can now hit you up on Facebook next time he or she needs the extra cash.
Paypal announced the launch of their latest Facebook app, Send Money, allowing users to transfer money to Facebook friends.
About the Send Money App
This person-to-person payment app allows users to select one of two methods to send money; with an e-card or without — pretty simple. The card option allows you to choose a card, personalize it with a message, photo or video and enter the amount you want to give. Once you have chosen a card and entered the amount the card will be posted to your friends wall and an email notification will be sent.
Sending money without the card works in a similar way; the friend will get a wall post along with the email.
3 Things to Know About the Send Money App
Some have confused this app as a partnership between Facebook and PayPal; in reality it is an app solely belonging to PayPal while being run through Facebook’s app feature. Here are a few more things to be aware about:
Does it cost anything? This app is free, under the condition you are using your bank account or PayPal device. If you choose to send outside of the U.S. then you will be paying anywhere from .5% to 2% of the transaction depending on where you send the money. Both payment methods carry credit or debit card fees; 2.9% plus 30 cents if you send within the US, 3.4% – 3.9% plus 30 cents outside of the U.S.
Are there restrictions on who you could ship to? As long as your friend or family member has a PayPal account and uses currency available through Paypal, then you should be good to go. If you send them money and they do not have a PayPal account, they can easily set one up through the notification email. There are four ways to withdraw the money:
- Spend it directly online.
- Transfer it to a bank.
- Request a check.
- Use a PayPal debit card.
Can you ship internationally? If you read the above then clearly the answer is yes. PayPal is set to accomodate payments to over 65 countries with currencies including: the Japanese Yen, British Pound, Hong Kong Dollar, Swiss Franc, Euro plus 19 others.
Hey Facebook, Where is your P2P?
Although this app is a good step for PayPal — extending its reach to a huge market — it isn’t that groundbreaking. It’s the same stuff you can do with PayPal’s Send Money app hosted on it’s own site. The biggest addition to this app, besides being available through Facebook, is the card that you can now post to your friends wall.
Facebook does offer Credits, as a payment system, but they only are available for games and apps. Facebook Credits are also unavailable for transfer among users because it would both pose a security risk, and decrease Facebook’s profitability — Facebook currently collects 30% of Credit’s redeemed for itself. TechCrunch has a stellar article exploring whether or not Facebook should take a page out of PayPal’s book and explore a P2P system.
This app looks like it’s mainly designed to gift money, but can also be used for repaying friends or borrowing money.