- Facebook (FB +1.7%) is updating its PC and mobile Messenger apps to allow users to send cash (via debit cards) to friends. A user sending money simply has to tap a $ icon, enter an amount, and tap a Pay button; a PIN can be created to provide security.
- Facebook is less than a year removed from hiring ex-PayPal chief David Marcus to run Messenger. Mark Zuckerberg, for his part, has suggested for a while payments will be a part of Facebook's efforts to monetize Messenger, which has 500M+ MAUs thanks in part to Facebook's decision to remove messaging functionality from its core apps.
- Many think WhatsApp, currently monetized in some markets via subscription fees, will eventually join rival messaging platforms in supporting payments. Facebook has promised it won't run ads on WhatsApp, and has more broadly argued ads aren't a good way to monetize messaging apps.
- PayPal owner eBay (EBAY -0.1%) has ticked lower following Facebook's announcement. For now, Facebook's platform doesn't support merchant payments, which account for a far larger percentage of PayPal's transaction volume than consumer-to-consumer payments.