What is Facebook Pay?
Facebook Pay is a mobile wallet that can only be used online on participating platforms.
This includes all of Meta’s (Facebook’s parent company) apps – Facebook, Messenger, Instagram and WhatsApp – but also ecommerce platforms like Shopify.
Only businesses and freelancers are allowed to offer it as a payment method, but any Facebook user can use it to make a payment.
How does it work?
There’s nothing groundbreaking or particularly innovative about Facebook Pay. It’s built on existing financial infrastructure and partnerships, meaning that Facebook doesn’t handle any of the payment processing itself. Instead, it uses payment providers Stripe and PayPal to process payments.
To accept payments through Facebook Pay, sellers first have to link their PayPal account and credit or debit card, most of which Facebook accepts. This is done by navigating to the ‘Settings’ section on your Facebook or Instagram account (‘Payments’ in the WhatsApp app), then adding a payment method.
The seller then has to enable Facebook Pay as a payment method for Shops or Facebook Marketplace, after which customers who have enabled Facebook Pay themselves can pay you via these platforms.
With Facebook Pay enabled, merchants allow customers to pay on a checkout page without re-entering their credit card details, like when clicking on a PayPal button to make a payment.
For merchants selling through Facebook Marketplace or Shops on Facebook and Instagram, customers simply click on the Facebook Pay icon when purchasing their goods.
For merchants selling through WhatsApp and Messenger, Facebook Pay works like peer-to-peer payments with Venmo or Zelle: sellers request money through the service or send payment links to customers via chat to complete a sale.
Facebook Pay is also available for integration on the ecommerce platform Shopify. So far, Facebook has not made the service available on other online shop services, but we expect more offerings in 2022.