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Posted by / 18-Jun-2016 03:11

Pay Pal gave a statement (emphasis mine) saying: When I asked a Pay Pal spokesperson if the company views Facebook Messenger payments as a “competitor,” they carefully avoided that word but eventually admitted “it does have similar technology and does a similar thing to what Venmo does.” While Venmo makes transfers with most debit cards free, Facebook’s free service will undercut Pay Pal’s 2.9 percent plus

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Instead, Davis says the goal is to offer P2P payments for free to make Messenger “more useful, expressive and delightful.” Since Facebook makes so much money on ads, .59 billion in Q4, it doesn’t have to monetize payments directly.

Facebook just needs to keep people locked into its platform and seeing News Feed ads by making Messenger as helpful as possible.

.30 fee per transaction from debit cards.

“We’re not building a payments business here,” Facebook’s product manager on the feature Steve Davis tells me.

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When you chat with friends about settling debts or splitting the bill, Facebook doesn’t want you to have to open another app like Pay Pal or Venmo to send them money.

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