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Facebook has transformed from a social media platform to an all-encompassing, multipurpose website. Originally designed to be an online community where users could share life events and post personal updates, opinions and feelings, Facebook has evolved into an online marketplace, digital advertising space and international messenger service. It makes sense, then, that in 2019 the social media giant decided to venture into the remittance industry, by introducing their online payments service, Facebook Pay.
About Facebook Pay
At its core Facebook is a social media network that was invited as a way to stay in touch with friends virtually. A concept developed in the dorms of Harvard University by students Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz, and Chris Hughes: the official Facebook company launched in 2004, in Massachusetts. Over the course of the last 17 years, Facebook has grown into one of the most recognisable brands in the world, and in June 2021 the company was valued at an estimated $1 trillion USD. In the same year, Facebook revealed approximately 2.89 billion users access the site on a monthly basis: this equates to 36% of the global population.
Having acquired other huge social media brands such as WhatsApp and Instagram, the company introduced Facebook Pay in 2019, promising users a secure, convenient and quick payment service accessible through the Facebook family of apps.
The far-reaching scope of Facebook’s network is by far the company’s biggest strength. Described as “a seamless, secure way to pay on the apps you already use,” Facebook Pay is a payments service which will enable customers to send and receive funds to Facebook friends, without needing banking information. The company's lack of experience in the financial services sector may present obstacles, but judging by Facebook's track record, we predict this endeavour is likely to be another success for the business.
To get a better idea of how Facebook Pay works, we will take a closer look at each individual area of the payments service to see how it holds up to traditional money transfer companies in the remittance industry.
Facebook Pay Exchange Rates, Fees & Costs
In this section we will review how useful Facebook Pay is for customers wanting to send and receive international money transfers.
Exchange Rates
As it stands, it is not currently possible to send and receive money from people in other countries using Facebook Pay. However, it is possible to send and receive multiple currencies, but these transfers can only be processed when both parties are based in the same country.
Further to these terms, it is only possible to change currency settings once every 72 hours, so setting up mass international payments in different currencies is not something which can easily be arranged through Facebook Pay.
When it comes to the exchange rates offered for the each of the available currencies, Facebook claims they do not add a fee to the conversion rate, but they cannot guarantee that the bank or service provider processing the payment won't add their own currency mark-up.
Transfer Fees
As mentioned in the previous section, Facebook does not charge any fees for sending or receiving money between friends using Facebook Pay. However, additional costs may be issued by the third party bank or service provider where payment is taken from or deposited to.
Top Destinations for Sending Money With Facebook Pay
At the time of writing this review, Facebook Pay is available in 144 countries around the world: view the full list of global coverage here. Accessibility varies depending on the region, with users in certain countries able to access Facebook Pay through the Messenger, Instagram and WhatsApp mobile apps, as well as Facebook. As of September 2021, the top destinations with full access to Facebook Pay across multiple platforms are:
The United States
The United Kingdom
US Virgin Islands
Thailand
Switzerland
Sweden
Spain
South Africa
Slovenia
Slovakia
Samoa
Romania
Puerto Rico
Portugal
Poland
Norway
The Netherlands
Malta
Luxembourg
Lithuania
Latvia
Italy
Ireland
Hungary
Greece
Germany
France
Finland
Estonia
Czech Republic
Cyprus
Croatia
Bulgaria
Brazil
Belgium
Austria
Pros & Cons of Using Facebook Pay
This a list of the benefits and drawbacks of making money transfers through Facebook Pay.
- No transfer fees: Facebook Pay is a fee-free service
- All-in-one app: View full payment history, manage payment methods and update your settings through your existing Facebook account, without needing to download a new app
- Real-time customer support: Available to those in the US only
- Familiar interface: Around 3 billion people use Facebook products which means the platform is a popular, user-friendly money choice that customers easily navigate
- Bank details not required: Once payment method has been added during the initial set up, no payment or bank details are requested for transfers; simply send and request money through your Friends list on Facebook
- New to the scene: Facebook Pay was launched at the end of 2019 and therefore the company is a lot less experienced with handling money transfers than leading service providers such as Wise or WorldRemit
- Domestic transfers only: Facebook Pay does not currently offer cross-border remittances
- Does not offer bank-level coverage or insurance
- Currency preferences can only be changed once every 3 days
What Type of Transfers Can You Make With Facebook Pay?
As a relatively new service, Facebook Pay currently only facilitates domestic transfers between Facebook users in the same country.
How Long Will It Take to Receive Money Using Facebook Pay?
Facebook Pay transfers typically take 1 day to arrive with the recipient, but this will depend on the total amount and chosen currency. This delivery speed is roughly the same as other money transfer apps like PayPal, Venmo and Cash App.
What Payment Methods Can I Use to Send Money With Facebook Pay?
It is quick and easy to register your payment methods with Facebook Pay. In the Settings tab, select Add payment method and enter your debit or credit card details, or connect your PayPal (service providers differ depending on your location) and save these changes for future use.
What Are the Best Reasons to Use Facebook Pay?
Quick and Easy to Set Up Through an App: That is well known, trusted and already used by billions of people across the globe
Integrated Payment Activity: Users can review payment history, manage settings and access customer support through multiple apps; Facebook, Messenger, Instagram and WhatsApp
Streamlined Online Payments: Support a cause or purchase items from your favourite brands without leaving the Facebook or Instagram app
No Bank Details: Users simply add their own payment details during the initial set up and then all future transfers simply share the name, profile photo, and transfer amount between both parties
Can I Trust Facebook Pay?
Although Facebook Pay has been operating for under 2 years, the Facebook company has been operating since 2004 and is now a trillion dollar entity. Due to the sheer number of users - as well as previous controversies and data breaches - Facebook takes data protection very seriously. Thanks to its enormous success, the company has access to the most talented cyber security professionals in the world, tasking these bright IT wizards to safeguard user data.
When it comes to Facebook Pay, the following security measures are employed:
State of the art anti-fraud technology is used to monitor all transactions to detect unauthorised activity
Advanced data storage and encryption is applied to all payment and bank details
Real-time push notifications if any unusual activity is detected
Biometrics and PIN codes are used to add a layer of security when sending money or receiving funds
Users can find out more about Facebook Pay security and data protection here.
What Users Have to Say About Facebook Pay?
There isn’t a great deal of online feedback about Facebook Pay services, probably because it is still being rolled out in some parts of the world.
How to Get Started With Facebook Pay to Send & Receive Money?
The main appeal of this money transfer service is that users do not need to set up a new account with a new company: Facebook Pay features will be available across the Facebook family of apps.
New users can choose to set up Facebook Pay across multiple apps: get started by opening Facebook on your browser or the mobile app, selecting the Facebook Pay option and adding a preferred method of payment.
How to Send and Receive Money With Facebook Pay
Log In
Add Payment Method
Select or Search for a Friend From the List
Enter the Amount
Confirmation
Does Facebook Pay Have a Mobile App?
Facebook Pay is not a stand-alone mobile app, instead, it works seamlessly through the apps you use. Users around the world will have access to Facebook Pay via Facebook, Messenger, WhatsApp and Instagram mobile apps, depending on their location.
