February 19, 2010
Social networkers and businesses looking to sell to them will soon be able to use the PayPal online payment network to purchase goods and services on Facebook.
The two companies announced a partnership Thursday under which Facebook will allow advertisers to use Ebay-owned PayPal's transaction system in order to pay for ads. The companies said it would make it easier for smaller businesses, especially those outside the U.S., to purchase advertising on Facebook. 70% of Facebook's users live in countries other than the U.S. "We want to give the people who use Facebook, as well as advertisers and developers, a fast and trusted way to pay across our service," said Dan Levy, Facebook's director of payment operations, in a statement. "As our business has grown, offering local methods of payment has become increasingly important for advertisers who want to buy Facebook ads. Teaming with PayPal, a global leader in online payments, makes this possible," said Levy. The companies did not say when, specifically, the arrangement would take effect. Facebook said it's also testing a plan that would see it allow end-users to employ PayPal to purchase Facebook Credits, which can be used for games and to make virtual purchases from the Facebook Gift Shop. PayPal execs said the deal potentially extends PayPal's network to Facebook's 400 million users. "Put simply, PayPal's business is payments," said Osama Bedier, PayPal's VP for platform and emerging technology. "We've always been an important part of the developer ecosystem on Facebook, and we're excited to expand our relationship directly with Facebook to help grow advertisers' and developers' businesses," Bedier said. PayPal said it currently has more than 81 million active accounts, worldwide. "Integrity Check: 5 Steps To Data-Centric Cybersecurity" will help keep your organization's data safe. Download the report here (registration required).
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