A number of social media companies have launched their own money transfer services. Earlier this year Facebook launched a P2P (peer-to-peer) cash transfer service, initially in the US, which allows friends to send money to one another through its Messenger app.
Snapchat, in partnership with Square, offers a similar service, Snapcash. By adding their debit card information, which is stored securely by Square, users can deliver cash straight to their friends’ bank accounts. However, like Facebook’s Messenger service, Snapcash is a P2P payment system and can’t be used for commercial purposes.
Twitter, meanwhile, has gone down the business route. The platform has a long history with ecommerce support, but with its In-Tweet Purchases, buyers will be able to complete transactions directly from a Tweet. Certain items from retailers are available for purchase within Twitter’s timeline, and will include a Buy button.
In China, social networks Alipay and WeChat have launched similar services and seen a dramatic increase in P2P traffic. Is the blossoming relationship between social media and money transfers a good thing, or not?
Is it too risky? Launching its Messenger money transfer facility, Facebook was keen to highlight the security features built into it, which include encrypted connections and card information Facebook platform, and payment systems that are ring-fenced from other parts of the Facebook network and subjected to additional monitoring and control.