Facebook, Paypal team up for virtual goods payment

Facebook and Paypal are teaming up – to provide payment system for users and advertisers, where users can buy virtual items, facebook credits and advertisers can buy Ads using PayPal.

Facebook allows users to send virtual gift items – such as cupcakes, airplanes and Teddy-bears that don’t exist in the real world and buy credits for games like Farmville, Mafia wars, Fishers etc – where users currently pay for these items using a credit card but now will be able to use PayPal as well.

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