PayPal is a popular online payment service that allows users to send and receive money digitally. Facebook also offers its own payment service called Facebook Pay which can be used on Facebook, Instagram, WhatsApp, and Messenger.
So can you use your PayPal account for Facebook Pay? Let’s take a closer look.
Quick Answer
No, PayPal does not currently work directly with Facebook Pay. PayPal and Facebook Pay are two separate payment services. While you can link a PayPal account to Facebook for donations, you cannot use your PayPal balance to make peer-to-peer payments through Facebook Pay.
Explaining the Facebook Pay service
Facebook Pay is Facebook’s own digital wallet service introduced in 2019. It provides a convenient way for users to make payments and money transfers across Facebook’s family of apps including:
- Messenger
With Facebook Pay, users can easily send money to friends and family, donate to causes, pay for Marketplace purchases, purchase digital goods, and more.
To use Facebook Pay, users need to add a payment method such as a debit card, credit card, or PayPal (for donations only). Payments made through Facebook Pay are processed by Facebook’s payment partners.
Key features of Facebook Pay
- Send and receive money to connections on Facebook
- Pay for purchases on Facebook Marketplace
- Donate to fundraisers and nonprofits
- Pay for content and digital goods
- Split bills and expenses
- Supports credit/debit cards and PayPal (for donations)
- Built-in purchase protection and fraud monitoring
Overview of PayPal
PayPal, on the other hand, is an online payments system that allows users to transfer funds electronically. With PayPal, users can:
- Shop online at millions of merchants worldwide
- Send and receive money from friends & family
- Make donations
- Pay online with debit and credit cards
- Pay in stores with PayPal’s mobile app
PayPal has over 400 million active user accounts and is available in over 200 markets. It provides flexibility in payment methods, buyer & seller protection, and the ability to make quick payments.
Key features of PayPal
- Send money to anyone with an email address
- Make online purchases with PayPal balance, bank account or cards
- PayPal Buyer Protection for eligible purchases
- PayPal Seller Protection for eligible sales
- Make mobile payments in stores
- PayPal Credit line of credit (in some countries)
- Supports online bank transfers, debit/credit cards
Linking PayPal and Facebook
While PayPal cannot directly integrate with Facebook Pay, you can link your PayPal account to Facebook in a limited capacity.
If you have a Facebook profile, you can add PayPal as a payment method for making donations and fundraising payments on Facebook. This allows you to conveniently donate to causes through Facebook using your PayPal balance or linked bank account/cards.
Here are the steps to add PayPal on Facebook for donations:
- Go to your Facebook Settings
- Click on “Payments”
- Under “Payment Methods” click “Add Payment Method”
- Choose PayPal and follow the instructions to link your account
Once linked, you’ll be able to use PayPal for making donations without having to re-enter your details each time.
Limits of PayPal on Facebook
While you can use PayPal for Facebook donations, the integration has some key limitations:
- Can only be used for nonprofit donations, not peer-to-peer payments
- Does not allow you to send/receive money through Facebook Pay
- Cannot use PayPal balance for Facebook commerce purchases
- No purchase protection for Facebook donations via PayPal
Why PayPal doesn’t work directly with Facebook Pay
There are a few reasons why PayPal does not fully integrate with Facebook’s payment services:
They are competitors
PayPal and Facebook Pay both facilitate digital payments and money transfers. Allowing direct integration between competitors is rare in the payments industry.
Different business models
PayPal charges merchant fees and relies on user fees for some services. Facebook Pay focuses on driving engagement and commerce within the Facebook ecosystem.
User base differences
PayPal has over 400 million users globally while Facebook Pay is designed for Facebook’s 2+ billion user base. Full integration may not benefit both companies’ strategies.
Technical challenges
Integrating two major payment systems with different technology stacks presents engineering challenges that take time and resources to address.
Regulatory requirements
Payment services have to abide by relevant regulations in their operating markets globally which may complicate integration.
Alternative options
While you cannot directly use your PayPal balance for Facebook Pay, there are a couple workarounds:
Add your PayPal debit/credit card
You can add the debit or credit card linked to your PayPal account as a payment method for Facebook Pay. This allows payments from your bank account or card balance to process through Facebook Pay.
Withdraw funds to bank & add account
Alternatively, you can withdraw funds from your PayPal balance to your bank account, and then add your bank account details to Facebook Pay. However, this involves an extra step compared to directly integrating the platforms.
The future possibilities
While PayPal does not currently integrate with Facebook Pay, there are ongoing conversations between the two companies around enabling more services together. Here are some possibilities that may happen in the future:
Peer-to-peer payments
Allowing Facebook Pay users to send each other money using their PayPal balance could take advantage of PayPal’s wide user base.
Shopping integration
PayPal may eventually work for buying products directly through Facebook Shop or Marketplace.
Messaging payments
WhatsApp is testing payments through Facebook Pay. PayPal integration could allow money transfers directly in messaging apps.
Expanding to Instagram
If Facebook Pay expands to allow peer-to-peer payments on Instagram, integrating PayPal is a natural next step.
Simpler connections
Facebook and PayPal could potentially develop technology to directly connect PayPal accounts to Facebook Pay with user consent.
However, for now linking your PayPal account on Facebook only works for donations. Peer-to-peer Facebook Pay requires adding an accepted payment method separately.
Summary and conclusion
In summary:
- PayPal does not currently integrate directly with Facebook’s payment service, Facebook Pay.
- You cannot use your PayPal balance to send/receive money via Facebook Pay.
- PayPal can only be used for nonprofit donations on Facebook, with limited functionality.
- To use Facebook Pay, you need to add an accepted payment method like a card or bank account.
- There is potential for greater PayPal and Facebook Pay integration in the future.
So in conclusion, while PayPal does not work directly with Facebook’s payment system at this time, there are some workaround options available. The two companies continue to explore further integration of their services which may allow more convenient use of PayPal through Facebook Pay in the future.