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BY DANNY MATTESON

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Friends owe you money? Now there’s a new way to collect -- via Facebook. Chicago’s WLS explains.

“The online payment company PayPal is launching an app for the social network site. The app is simply called ‘Send Money’ and it will allow you to send and receive from Facebook friends.”

So how does it work? Writers at Engadget say it’s easy, and perhaps more importantly -- safer than you’re average PayPal transaction..

 

“After logging into Facebook and authorizing the app, you'll be able to use PayPal to transfer funds to individuals that you're connected with … adding a layer of security to the notoriously fraud-laden online payment service.”

And Gizmodo points out that the app is more than just money changing hands, with the built in eCard option the service can be used on a variety of occasions.

“The app also gives you the option to include an eCard with the cash, so it can be used for graduations, weddings, blackmail—whatever.”

But some are wondering how much money they’ll be sending to PayPal when they use the ‘SendMoney” app. According to Mashable, none, unless you’re transaction happens to be crossing the border.

“...because it’s a peer-to-peer transaction, there is no transaction fee, though PayPal’s regular limits and international fees still apply.”

So who stands to get paid the most by the new service? GigaOm says, with Facebook’s massive user base, it’s likely PayPal.

“...it’s an obvious move to tap the 800 million members of Facebook. And if it can get people to load up their PayPal balances more, it can mean extra income from interest on those funds.”

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