You can now send money on Facebook Messenger via PayPal
Online payment gateway company PayPal (PYPL) expanded its partnership with Facebook (FB) on Friday, October 20, 2017. The new deal will allow Facebook Messenger users to send money to other users through the company’s payment gateway. Last year, PayPal joined hands with Facebook to allow more than 2.5 million US users to use PayPal to shop on the Messenger App.
The ability to send and request cash on Facebook’s messaging apps (applications) provides users with more convenient ways to exchange money with friends and family. Facebook Messenger has 1.2 billion monthly active users.
Person-to-person payment sees increased popularity, especially in China
PayPal offers a person-to-person payment service and a checkout method to online customers. The company also owns Venmo, a popular person-to-person service. PayPal is the leader in person-to-person payments, recording $24.0 billion in person-to-person payment volume in fiscal 3Q17, a 47.0% rise YoY (year-over-year).
Person-to-person payments have been extremely popular in China (ASHR). China’s Tencent Holdings (TCEHY), for example, which owns popular texting app WeChat, lets users send and request money through Tenpay, the WeChat payment gateway.
PayPal stock has risen 9.0% this month on the back of stellar earnings growth in the last quarter and a whopping 77.0% year-to-date. As the above graph shows, the total payment volume through the PayPal gateway rose 29.0% YoY in fiscal 3Q17.