PayPal and Facebook today announced a "strategic relationship" that would incorporate PayPal services into parts of Facebook's advertising and developer systems.
Under the deal, advertisers would be able to use PayPal to pay for Facebook and users would be able to use the payment service to buy Facebook Credits, which in turn allows them to pay for virtual goods within the social network.
In an earnings call last month, eBay said it was seeing "exceptional performance"by PayPal, citing increased global presence and more than $20 billion in total payment volume for the quarter. The international market becomes particularly interesting. Facebook and PayPal noted that the deal makes it easier for advertisers, particularly small international companies, to run ad campaigns on Facebook.
During that call, eBay execs said that 25 percent of the total payment volume stemmed from cross-border transactions. PayPal handles 24 currencies in 190 markets. It also said that more than 12,000 developers are tapping into the open payments platform to build PayPal-integrated apps.