Facebook and PayPal Thursday announced a tie-up to use PayPal as the way to pay for Facebook’s advertising and developer systems.

Facebook has currently over 400 million users worldwide, including 120 million in the US alone. Owned by eBay, PayPal is the online mode to pay for e-commerce transactions worldwide. It has 81 million accounts in 24 currencies around the world.

Under the tie-up, advertisers around the world will be able to use PayPal to pay for Facebook advertisements, PayPal said in a press release.

For businesses in areas where the payment process can be difficult and expensive, PayPal said its services will make it easier for advertisers to run campaigns on Facebook.

PayPal can also be used for the newly started Facebook Credits which aims to give (Facebook) users a fast and easy way

to buy virtual goods on Facebook, including items from the Facebook Gift Shop, the statement said.

“We want to give the people who use Facebook, as well as advertisers and developers, a fast and trusted way to pay across our service,” the statement quoted Dan Levy, director of payment operations at Facebook.

“As our business has grown, offering local methods of payment has become increasingly important for advertisers who

want to buy Facebook Ads. Teaming with PayPal, a global leader in online payments, makes this possible,” he said.

Osama Bedier, PayPal vice president (emerging technologies), added, “Put simply, PayPal’s business is payments. We make

it easier for customers to send and receive money online in 24 currencies and 190 markets around the world.

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Online payment services provider PayPal today said it would take a few months to restore its India services, which was suspended last week.

In a blog, PayPal spokesperson Anuj Nayar said the service was temporarily suspended to respond to queries of Indian regulators, specifically questions whether personal payments constituted remittances into India.

“We are working with the regulators and our bank-processing partners in India to get this resolved as quickly as we can. We realise that this is causing considerable inconvenience to our customers and I want to reassure you that this is a top priority for the leadership at PayPal,” Nayar said.

The company said it “was actively engaged” in trying to secure a fresh licence after being informed recently about a change in rules. Nayar said personal payments to and from India would be suspended for at least a few months until PayPal had fully resolved the questions from the Indian regulators. PayPal said customers should be able to withdraw their funds from a local bank within the next few days.

“We’re going to restore the money into the PayPal account of any customer in India who has initiated (tried to) a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges,” he said.

1 March 2010, Monday
PayPal has received the green light from the Reserve Bank of India to resume bank withdrawals for settlements involving exports of goods and services, but personal payments remains suspended.

In a blog post Friday, Farhad Irani, head of PayPal Asia-Pacific wrote that RBI has allowed PayPal to resume bank withdrawals for the exports of goods and services. The company is now making changes to comply with Indian regulations and “anticipates” it will be able to resume bank withdrawal service for settlements effective March 3.

However, personal payments remain suspended as PayPal still needs specific government approval to allow personal-inward remittances to India.

The e-payment services provider last month halted its services in the country as a result of India’s revised licensing laws.

4 March 2010, Thursday
PayPal suspended Indian bank transfer for the while to make necessary changes to their system. They will resume their services soon. Following is the message appears in PayPal account when we try to withdraw funds:

We are making some changes to our product in compliance with India regulations for settlements for exports of goods and / or services. During this time, we have temporarily suspended the ability to withdraw money to your bank account. We hope to resume settlements to enable you to withdraw funds to your local bank account without delays.

As part of the changes, you will also be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required in order to identify the nature of cross-border merchant transactions.

Our sincere apologies for the inconvenience you must be facing. Please be assured that we are working to resolve this as quickly as possible and we will make sure to keep you updated.

We hope, PayPal would fix their system and add a new “Export Code” field soon so that people in India can again use the services of PayPal to withdraw their funds to their Indian bank account.

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