WASHINGTON (WNEW) — Facebook is trying to get in the game of online payment systems like PayPal by introducing a free friend-to-friend service of its own, the company announced Tuesday.
TechCrunch reports the new system allows you to settle debts or split the bill through Facebook messenger.
To send money, users start a message to a friend and tap the $ icon to enter the amount of money to send and add their debit card info by tapping “Pay” in the top right.
To receive money, you open the conversation from your friend and tap “Add Card” in the message to add your debit card to accept money for the first time.
The above video demonstrates how it works.
“Facebook’s free service will undercut PayPal’s 2.9% plus $0.30 fee per transaction from debit cards,” reports TechCrunch.
And while it may rival PayPal, does it offer the same security?
“These payment systems are kept in a secured environment that is separate from other parts of the Facebook network and that receive additional monitoring and control. A team of anti-fraud specialists monitor for suspicious purchase activity to help keep accounts safe,” Facebook says.
Facebook says it plans to roll out the feature in the US in the next few months across Android, iOS and desktop.
Follow WNEW on Twitter