What is Facebook Pay?
Facebook Pay is an easy and secure payment method that is free for consumers and businesses. Find out how it can benefit your company.
Facebook Pay is a payment method available to all customers who use Facebook, so it can be very valuable to your business.
Facebook Pay is free for both consumers and businesses.
Facebook Pay can help you attract new customers and avoid pesky transaction fees, but it can’t yet integrate with every small business website.
This article is for small business owners interested in adding Facebook Pay to their payment processing options.
Sometimes it seems like every few months customers have a new way to pay you online. These methods are rarely the result of some brilliant new technology. They often come from big tech companies that create their own versions of tools that other big names have already developed. Example: Just as Google Pay followed Apple Pay, now Facebook Pay is an option. This new service can be of great benefit to your business. Here’s what you need to know about Facebook Pay.
What is Facebook Pay?
Facebook Pay is a payment method that customers can use to purchase your products. Facebook users who want to use Facebook Pay start by adding their payment, shipping and personal information to the Facebook app. Then when they buy your products on social media or your business website, they can choose Facebook Pay at checkout. To get started, you need to add Facebook Pay to your company website.
How does Facebook Pay work?
All customers who use Facebook can automatically use Facebook Pay when they are on Facebook, Instagram, Messenger or the Portal. The process is seamless as long as users have their debit card, credit card or other payment option saved on their Facebook account.
To use Facebook Pay, customers sign out, indicate they want to use Facebook Pay, and enter their PIN to complete the transaction. Users can also opt for biometric identification methods instead of PIN. Either way, with Facebook Pay, customers don’t have to enter their credit card number for every transaction.
For small business owners, Facebook Pay works just as easily. It integrates seamlessly with most payment processing and e-commerce platforms. Since customers only need to be logged into their Facebook profiles to use Facebook Pay, online payments are much more efficient. No more entering payment details and addresses – just a click or two. Customers can use Facebook Pay to purchase almost all kinds of goods and services.
How much does Facebook Pay cost?
Facebook Pay is free. You and your customers can implement it without paying money if you already accept credit cards. Your current credit card payment processor will take care of all your Facebook Pay needs. The cost of Facebook Pay is included in the cost of processing your credit card.
Facebook Pay vs. PayPal
Although Facebook has billions of users, its business payment processing platform has yet to become as ubiquitous as PayPal. That’s because virtually any customer can use PayPal, while Facebook Pay’s audience is limited to Facebook and Instagram users.
This means that Facebook Pay has one significant advantage over PayPal. All of its transactions are fee-free, while PayPal is notorious for its fees. So while PayPal is accessible to everyone, Facebook Pay is a great PayPal alternative for a tech-savvy customer base that uses social media regularly. In fact, many social media users may already have Facebook Pay set up.
How secure is Facebook Pay?
There are many credit card and other security risks in payment processing. Most payment processing companies have trusted guarantees in place. Facebook, on the other hand, has gone through several highly publicized data scandals. This raises an important question: Is Facebook Pay secure?
The answer is yes. Facebook Pay boasts top-notch security. When added to the Facebook app, it encrypts all debit and credit card data. Likewise, Facebook Pay will never share a user’s payment information with other parties without permission. In addition, all Facebook account data is stored in a different location than payment data.
Pros and cons of using Facebook Pay for business
Like any payment processing method, Facebook Pay has its pros and cons. (The same can be said for using Facebook for business in general.) Here are some great reasons to use Facebook Pay for your business:
More potential customers. Data shows that 46% of customers consider using a mobile wallet to be very important when shopping. With Facebook Pay in your arsenal, your business can reach these customers more powerfully. After all, since the Facebook app stores a user’s credit and debit cards, it’s essentially a digital wallet.
Faster payment for customers. When you optimize your online checkout process, you can increase conversions by almost 36%. Facebook Pay is a great way to do this. It’s more user-friendly and less tedious than entering payment details and addresses into a form. If your checkout process is particularly user-friendly, your reputation can be strengthened, leading to increased brand awareness.
The ability for customers to buy from you on social media sites. The above conversion statistics suggest that you should do everything you can to speed up the checkout process. This could include making checkout available the moment customers see your products on your social media pages. You can do that with Facebook Pay. You will be able to turn your social media pages into fast payment services.
Ability to add another payment option to your website. If you run the backend of your website through Shopify, you can integrate Facebook Pay with your website. (Facebook Pay rolled out its integrations with third-party sites in July 2021.)
Transactions without fees. Facebook Pay is free to use. On the other hand, PayPal will charge you annoying fees that add up quickly. The business models of both platforms are roughly the same, so the free option has a clear advantage.
Here are some disadvantages of using Facebook Pay for your business:
Not all customers can use it. Although there are billions of people on Facebook, there are people who don’t use the network. These people cannot use Facebook Pay. Additionally, some people with Facebook accounts prefer to avoid using the platform unless they need to. So if you were to invest in promoting your payment option on Facebook, you could see a lower return on investment than expected.
It cannot be integrated with all websites. If you used a platform other than Shopify to build your site, Facebook Pay isn’t available to you yet. Facebook intends to make Facebook Pay available to sites that host other services, but until then, many businesses are out of luck.
It’s not yet as comprehensive as PayPal. Almost every customer has a PayPal account. Barriers to entry are low and the company has dominated the digital wallet world for decades. If your business does not primarily communicate with customers through Facebook or Instagram, you should not replace PayPal with Facebook Pay.
What you need to start using Facebook Pay
Accepting payments on Facebook Pay is as easy as setting up a Facebook Pay business account. All you have to do is register via Facebook. Before you do that, you should probably have a Facebook store, a PayPal account, an active presence on Messenger, and a credit card processing account.
With all of these components, you can connect Facebook Pay to your Facebook store and possibly your website. Your customers will see the option to use Facebook Pay during the checkout process and can complete their purchase in just a few clicks.