This afternoon Facebook announced a partnership with PayPal in which users can now pay for their Facebook Credits using the payment provider. Since rumors first began about the expansion of Facebook Credits, many assumed that it would eventually become a direct competitor to PayPal. Today’s announcement suggests that this is not the case.
Instead, Facebook will continue to integrate Facebook Credits into their platform, making it a payment provider for virtual goods. So next time you check out at your favorite e-commerce provider, don’t expect to check out with Facebook Credits. Instead, Facebook will remain focused on the smaller transactions like purchasing gifts for your friends’ birthdays.
Building a world class payment solution clearly has its challenges (fraud, etc), which makes this a natural partnership. Facebook has enabled users to make purchases within their platform, however building up a anti-fraud team to a level in which a large percentage of online transactions are running through the system is extremely expensive.
With PayPal founder Peter Thiel on the board of Facebook, one can only imagine that the company thought long and hard about the best payment strategy. Facebook has already tested out other payment solutions (such as Zong), however the ability to pay for virtual transactions through PayPal is massive considering PayPal’s more than 81 million accounts.
Below are screenshots (which are currently drafts) of the new integration.
![[Inside Social Apps 2012]](http://www.allfacebook.com/wordpress/wp-content/themes/allfacebook2/images/ISA2012_336x100_F_RegisterNow.gif)
![[AllFacebook Stats: Facebook Analytics for Your Business]](http://www.allfacebook.com/wordpress/wp-content/themes/allfacebook2/images/stpro_allfacebookstats.gif)
![[How can Facebook change your business?]](http://www.allfacebook.com/wordpress/wp-content/themes/allfacebook2/images/FMB_A_MAY2011_336x100_F.gif)
I'll be able to just suck in my Paypal money, turn it into FB Credits with one click… dangerous, but awesome for game makers.
Comment by Neil Vidyarthi — February 18, 2010 @ 12:34 pm
yeah, you'll be able to convert your £ or $ in FarmVille chickens in one click… exciting
Comment by Facebook User — February 22, 2010 @ 5:16 am
ahhh…
that’s why I recently got a Paypal adv in my email account…
Facebook shared my email addie with Paypal! Sneaky but I suspect, legal?
Comment by Paul Knudsen — February 22, 2010 @ 11:45 am
That’s cool!
I supposed this is not available yet… tried to find it, but it wasn’t available.
Comment by Guillermo Carrion — February 28, 2010 @ 5:24 pm
it was that to be enhance toward fast and secure.
Comment by husnina — June 6, 2010 @ 2:15 am
please tell me to get fb credits
Comment by bobby — July 25, 2010 @ 11:26 pm
In other words, a payment wallet that can be used for any . The debate has emerged on question-and-answer service , after a user. The sites with thin margins will want to use the cheapest payment provider. … finally become united under Facebook global nation
…
Comment by Earn — October 25, 2010 @ 7:39 pm
How safe is Paypal on Facebook?
Comment by Roach — May 18, 2011 @ 2:32 pm