Facebook is introducing Facebook Pay. The company describes it as: “a convenient, secure and consistent payment experience across Facebook, Messenger, Instagram, and WhatsApp.”
Facebook Pay will begin rolling out on Facebook and Messenger this week in the US for fundraisers, in-game purchases, event tickets, person-to-person payments on Messenger and purchases from select Pages and businesses on Facebook Marketplace. And, over time, we plan to bring Facebook Pay to more people and places, including for use across Instagram and WhatsApp.
Facebook points out that Facebook Pay is built on existing financial infrastructure and partnerships, and is separate from the Calibra wallet which will run on the Libra network.
That is probably a good decision on Facebook’s part, because Libra has had several companies that were founding members drop out. I don’t think anyone should trust that Libra will be stable until or unless it gets additional companies to sponsor it.
But, this doesn’t necessarily mean that Facebook Pay is a good idea. The Verge reported in October that PayPal, Visa, Mastercard, Stripe, Mercado Pago, and Ebay all dropped out of the Libra project. To me, it seems like a long-shot that the companies who pulled out of Libra would turn around and attach themselves to Facebook Pay.
But even if they did, and other credit card companies also decided to get on board with Facebook Pay, that brings up another problem. How much do you trust Facebook with your credit card number? Earlier this year, the FTC imposed a $5 billion penalty on Facebook and required the company to boost its accountability and transparency. The FTC is also not thrilled with Facebook’s situation with Cambridge Analytica.