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How Facebook Payments could work in the future

Imagine Facebook create a partnership with a global bank – let’s say HSBC – to offer a P2P payments service. Not Facebook credits, but proper P2P payments. How might it work?

Today, I found out.

I got Hyves.

Yes, I know that sounds like some sort of disease but it’s not. It’s
actually the Dutch version of Facebook, and is the largest social
networking tool in the Netherlands, with almost two-thirds of the
population connected (9 million users out of a population of around 16.7 million

On March 24th, Hyves announced the introduction of
social payments in partnership with Rabobank, a Dutch bank and also one
of Europe’s most innovative retail banks.


Patrick de Laive, co-founder of Twittercounter and Paydro, has made a nice video in English explaining how it works:

as well as blogging about it at the Next Web Europe:

“With Hyves Payments you can send and receive money via your Hyves account. To each profile a link ‘send money to’ is added and you can instantly transfer amounts up to 150 eur to any one in the network. You can connect your Hyves account to your bank account (any bank in the Netherlands will do) to add money to or withdraw money from your Hyves account.

“Hyves users can also request money from their friends. Very useful after a night out.

“All payments are debit payments for peer-to-peer transactions, no costs are involved.

“At the same time Hyves Payments are open for merchants and because of a partnership with cash register system Eijsink, and mobile application MyOrder 30% of the restaurants and bars in the Netherlands instantly can accept Hyves Payments.

“For Merchant payments a 0.15 eur fixed transaction fee is charged to the merchant.

This is a perfect example of how a true local social network can add value over the big international ones. I can’t see Facebook integrating a free peer-to-peer payment system for all their users. For stuff like this, deep integration and strong local partners are required. In this case Rabobank has the bank license, takes care of the money transfers and they also have an MVNO (Mobile Virtual Network Operator) that handles the text messages involved to authenticate the payment. On the merchant side a partnership with Eijsink and MyOrder.”


About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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Much to learn, you still have

I seem to grapple daily with the same or similar questions: how to regulate things …

  • Eyal

    A registration based system where a bank account is linked to a Facebook profile is a huge based for ID theft and fraud. It may work for some low-fraud countries but….Facebook? Forget it.

  • Didn’t HSBC already try this with Yahoo a few years ago?

  • Chris Skinner

    Similar but slightly different wasn’t it Dave, as it was more like a PayPal …
    Closed since 2004 btw:

  • Limiting recipient ID’s to any social network ID is forcing the consumer to work only within this environment. A proper payment system allows the sender to identify the beneficiary with a number of ID’s such as mobile number, email address, twitter name, facebook ID etc. whichever is most convenient for them at the time.

  • Eyal

    I agree with Jason but I don’t see any reference to the security issues here. This system may work in a North European country (perhaps)…but in the rest of the world? Scams and fraud from Facebook Hacks will flourish! There are better solutions out there for social networks and banks, banks just need to want to go that direction.