Paypal Launches Facebook application for sending money between friends

Launched earlier today, PayPal has launched a Facebook application that allows Facebook users to send money to other Facebook friends. After verifying the payment, it is sent immediately to the Facebook user. Although there are currently applications designed for paying with PayPal through Facebook, this is the first peer-to-peer payment application using both Facebook and PayPal. Identical to sending payments between PayPal users, there’s no transaction fee between users when a PayPal account is currently funded or linked to a bank account. However, international fees and fees for credit card payments still apply when sending money through the Facebook application.

According to PayPal, over eighty percent of active PayPal users also have Facebook accounts.  PayPal re-introduced a peer-to-peer application on Facebook yesterday, which lets users send an e-card and money or just money, to any of their Facebook friends. Facebook updates its Send Money app for Facebook PayPal first launched its Send Money app in December 2009, which then let Facebook members send money to friends by using a credit card or their PayPal account.

The new version of PayPal’s Send Money app lets users send a digital greeting card along with the money, which makes a better gift for holidays and birthdays. The PayPal app doesn’t need any other data or APIs and it does not integrate with Facebook’s payment system. Why hasn’t Facebook built its own way for friends to send money to each other using its virtual currency Credits?”