A man is silhouetted against a video screen with a Facebook logo
A man is silhouetted against a video screen with an Facebook logo as he poses with an Dell laptop REUTERS

Facebook the social networking site in 2010 that was to begin a mobile payment service, they also allowed third party developers to enable money transfer over Facebook using apps. This time around there was news that Facebook plans to have a mobile payment system using its Facebook Messenger iPhone app. This has come to light with the screenshots from hidden features of the app.

According to the Guardian, screenshots showed a method to add debit and credit cards to a Facebook account. This also enables users to send money to their friends through messages. According to Andrew Aude, money can be attached with the Facebook Messenger in a simple way like attaching a photo or a location. Aude is an iOS developer, a security researcher and a student at the Stanford University. He discovered this service in the Facebook Messenger iPhone app. He stated that users do not even need to link a bank account. The app has the capability to protect payments through a pin.

Though Facebook had been pushing for mobile payments through the messenger app in 2010, this year it has sought approval from its Ireland base for e-money status that would enable Facebook to issue digital credits that will give the recipient of the credits to be able to convert it into cash.

If Facebook gets approval to operate the e-money service in Ireland it could operate across the European countries using passporting rules. According to this rule, it will allow for digital payments to be used across the European Union member states without having to get approval from every European country.

According to Taavet Hinrikus the co-founder of remittance service TransferWise, the global market for digital money transfer is estimated at around $5 trillion to $10 trillion. Companies like Barclays PingIt and Paym allow mobile users in the U.K. to send money to others using the smartphone app or phone number. PayPal too allows users to send money to other users privately using their mobile app.

The details regarding the Messenger payment that was leaked on Twitter does not state that Facebook would follow Apple Pay or Google with a payment system. The Guardian reported that Facebook declined to make any comments.