Paypal is teaming up with the world’s largest web payment solutions provider, Paypal, allowing Facebook friends to send each other real money using the “Send Money” application.

Through the app, users will have the option to send money using an eCard or just a money without the card. While there are several ways to use Paypal to send payment via Facebook (like Payvment), “send money” is the first peer-to-peer payments system enabled for Facebook and PayPal. Since it is a peer-to-peer transaction, there will be no transaction fee

International fees and payment limits which are regular in Paypal will apply though.

“Sending money, person to person, is free,” PayPal Senior Product Marketing Manager JB Coutinho told Mashable. “If it’s funded by a PayPal balance or linked to a bank account, it’s free.”

Through a blog post, Paypal said that more than 500 Million eCards are sent everyday. The app makes social payment stronger and a reality in all aspects. Friends can send their friends money through Facebook or buy gift cards for any occasion. It would be so interesting to see M-Pesa also join the social payment fray.