Sending cash to friends just got a whole lot easier.

On March 17, Facebook introduced a new feature that allows you to send money via its instant messaging app, Facebook Messenger. Instead of using another app such as Paypal or Venmo, this update gives you direct access to your long list of friends in case you need to pay up on a bet or quickly split a bill. The feature requires a debit card on file and will be rolled out to Facebook accounts gradually over the next few months.

This move was much more than just a convenient update to the Messenger app. Facebook is positioning itself to become the leader in mobile messaging and peer-to-peer transactions.

Other companies have made not-so successful attempts at adding money transfer features (i.e. Snapchat) but Facebook is by far the largest social network, which gives it a clear advantage. According to a March 17 Wired article, Facebook is used by over 1.3 billion people worldwide and the Messenger app alone serves around 500 million users. For comparison, this is about two and half times the number of Snapchatters.

Facebook’s new feature only works with Visa or MasterCard debit cards and doesn’t work internationally yet. Students studying abroad would benefit greatly from having a quick and easy way to receive money from home. Once the service becomes available worldwide, the Messenger app will receive a huge boost.

Facebook also acquired the messaging app WhatsApp last year and that has over 700 million users, but doesn’t offer payment services. Facebook could integrate this feature into WhatsApp and gain complete control over the mobile messaging and mobile payment realm.

It seems as though Mark Zuckerberg’s ulterior motive in obtaining this user payment information is an attempt to get ahead of the mobile payment wave that is starting in Silicon Valley. Once Facebook has that data, it can create other revenue-generating services that tempt you to spend.

Facebook is already testing a “buy” button that lets users instantly purchase items straight from their newsfeeds. This would give companies a path not only to advertise products but also to sell them directly.

Facebook does have previous experience with payments from its in-app games like Farmville and gambling simulators where users collectively spend millions per year. The social network processes more than 1 million transactions on its site each day, according to a March 17 CNET article. Facebook hopes its leap into the ecommerce world is as successful.

The groundwork for convenient mobile payments has been put in place with Google Wallet, Apple Pay and now Facebook. The success of this new form of transaction largely relies on consumers’ willingness to buck traditional habits for a new and more convenient style. Older generations may be less apt to change, but with the addition of Facebook, I think mobile payments and money transfers will slowly start to become more common in 2015.

Zuckerberg is making a safe bet by mixing e-commerce with Facebook’s huge user base. Barring any security issues, this new feature seems to be money in the bank.

Aarick Knighton is a junior information management and technology major. His column appears weekly. He can be reached at adknight@syr.edu and followed on Twitter @aarickurban.

Published on March 25, 2015 at 12:10 am