Facebook Inc (NASDAQ:FB), not to be outdone by the likes of other technology giants who have showed their hands in the electronic payment industry, is now also used to send money.
According to a report from The Economic Times India, Facebook Inc (NASDAQ:FB), the world’s largest social media company, has partnered with Kotak Mahindra Bank Ltd. to enable money transfers in India through its platform.
The product is being called KayPay and will enable people in India to send money without even knowing the banking details of the person they are sending money to. All they need to do, the publication notes, is to select a friend on their Facebook Inc (NASDAQ:FB) friends list and send money through the site.
Using a Facebook user ID, password and another password generated for each transaction, users will be able to use the KayPay system. Notifications will be sent via text messages and Facebook, the publication notes.
The new move from the social networking giant comes as Twitter Inc (NYSE:TWTR), a rival social network, has just announced a similar partnership in France with Groupe BPCE, the second largest bank in that country. Through tweets, the bank and Twitter will enable people in the country to send money without knowing their recipient’s banking details.
Furthermore, an executive from S-Money, Groupe BPCE’s mobile payments unit, said that even people who do not have accounts with their bank will be able to use the system.
It seems that Facebook Inc (NASDAQ:FB)’s new money transfer system in India will be similar to the Twitter – Groupe BPCE system in France as The Economic Times India says that it will utilize the Immediate Payment System, a mobile-based technology, by the National Payment Corporation of India.
The new systems being launched by Facebook and Twitter are seen as a threat to PayPal, Inc., the electronic payment division of eBay Inc (NASDAQ:EBAY), which will be spun off next year. Apple Inc. (NASDAQ:AAPL) is also entering this space with its Apple Pay system which was announced at the launch of the iPhone 6 and iPhone 6 Plus last month.
Facebook Inc (NASDAQ:FB) shareholders includes Karthik Sarma’s Srs Investment Management which reported 5 million shares in the social networking behemoth by the end of the second quarter of 2014.