Facebook UK announces new payment method on Messenger app

Facebook has announced plans to expand its money transfer services to its Messenger app for all UK users.

The app is now aiming to allow its monthly 1.2bn consumers to process one-to-one payments. This system is already available in the USA - it was introduced there in 2015 - but is planning to come to the UK in the near future.

The company states that this is free to use for all customers. On the first payment, the app will ask for bank details to be obtained, then requiring an amount of up to £2,500 to be paid. The 30-day limit for a single user is £10k.

However convenient this sounds, it could be a further threat to conventional banks. Sudhesh Giriyan, COO of Xpress Money, commented: “It’s unsurprising to see Facebook expanding its presence in the peer-to-peer payments space, but it should serve as a warning for traditional banks as yet another big technology company builds customer loyalty.

“While essentially the new middle man, Facebook is diminishing the role of banks when it comes to their customers sending money.

“Banks need to bear in mind that areas where they have traditionally been dominant are likely to be disrupted, and to keep up they will either need to partner or innovate.”

Despite this, Facebook believes this is an innovative, safe way to send money - while having a conversation with friends. The social media site states that Messenger does not directly handle the money itself, and a pin can be enabled to allow money to be sent with the system being encrypted for safety.

The money is said to be transferred to a person’s bank within one to three working days.

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