Paypal recently announced the launch of their new Facebook App which lets users send money to friends and family in Facebook.

Paypal, the San Jose-based Company and Facebook, the social networking giant worked hand in hand to develop the app named "Send Money". This application would enable users of the popular social networking site to send money anywhere through Facebook just by clicking on the app button. Anuj Nayar, the Paypal Director of Global Communications remarked that this deal means that "Facebook and Paypal infrastructure have merged". He also added that "This is another way to personalize the act of giving money."

In order to send money through Paypal in Facebook, the sender must first know the recipient's email addresses. In Facebook, email addresses are not always shown so this could pose as a problem. Though that is the case, Paypal expressed the reason on why users should know the email addresses of their friends when sending money. The company explained it stating that "When you send money to a friend, we send them an email prompting them to log in to PayPal to get the money. If they don't have a PayPal account, they can sign up for a new account in minutes by following instructions included with their notification. This simple step helps PayPal protect you against fraud." There is no fee for person-to-person cash transaction if the transfer was done using a Paypal-connected debit card or bank account. If it is an international transaction, regular fess do apply.

Paypal expressed their hopes that this app would become popular for users who are also sending e-cards through Facebook. Paypal revealed that there are at least 500 million e-cards sent every year and this motivated the company to expand their offerings ranging from the usual birthday greetings to congratulations. This also prompted them to integrate Paypal service in Facebook.

Paypal was not the only company to partner up with Facebook as Skype announced their recent partnership with the social networking site. The recent partnership would allow Facebook users to make video calls to their Facebook friends using the Skype interface.