PayPal announced a strategic partnership with Facebook, giving users of the service another payment method for ads, as well as their Facebook Credits, a site-specific virtual currency.

Yesterday, PayPal announced a strategic partnership with Facebook, giving users of the service another payment method for ads, as well as their Facebook Credits, a site-specific virtual currency. The partnership will help small international businesses profit from ads, while the actual benefit to users lies in the implementation of PayPal Credits, which are being tested in a small number of apps on Facebook, as a virtual method of payment.

Facebook will still push for a seamless integration of Facebook Credits into their platform, making it a payment provider for virtual goods, but don't expect to check out with them with your preferred e-commerce provider. Facebook will target smaller transactions like purchasing gifts for your friends’ birthdays.

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