No one doubted that Facebook would never enter the world of payments. This was true when Facebook had 500 million users; it is now true that they have more than a billion users.
The confirmation came when the brilliant Mark Zuckerberg succeeded in appointing David Marcus, president / CEO of PayPal, to lead the Messenger division within Facebook. David’s departure from PayPal was a big surprise for the payments world.
No one saw it coming. No one.
I have always believed that Facebook has the power to be more than just a social media platform. In 2009, I had the feeling that the management team with such a broad platform was not thinking of negotiations. It’s hard not to do that.
What’s even more brilliant about Facebook is that they did not participate in a race with everyone else. It took a while. They created their own program.
Facebook has the ability to do it the right way and they (in my opinion) just do it – they do it the right way.
The time of the eyeball is important … a lot!
As an active Facebook user, I spend a lot of time on your app, search my feed, enjoy it, watch videos, post content, connect with people. My Facebook schedule is probably not on the map.
If you now have Apple Pay, PayPal, Venmo (also a PayPal company), Square Cash, Samsung Pay, etc. Compare All these programs take time unless you have to pay.
That’s a big difference.
Of course, these apps maybe even better than Facebook for payments, but this is where Facebook takes time to perfect its service. Facebook wants you to have the best payment experience, not an urgent job. They will continue to slowly release the right payment mechanisms on their platform so that customers can gradually get used to it.
I once installed an application that calculated the display time for each application on my phone. Facebook won it all together!
Communication is essential
Of course, anyone with a social media communication platform will undoubtedly win when it comes to integrating payments into the same ecosystem.
As humans we do two things:
• We read, watch and listen to the content (we record passively)
• And we communicate (actively) with others.
Facebook offers both. It is a timeline that can be passive/active and also has an active messaging platform.
This is where other people get hurt. PayPal may be an excellent product, but I do not waste time admiring the PayPal application and using it if necessary. The same goes for other applications. You can use it when you need it and then lock it.
Messenger Payments, launched by Facebook, allows you to pay within the Facebook ecosystem without complications. Yes, it also includes WhatsApp and Instagram.
Facebook Border Payments?
Does Facebook offer international payments? Hell yes! I really know.
When Facebook has a small or large asset, country-specific regulations are not (not always, but generally) addressed. Do not start. Most of Facebook’s features were first introduced in the US, so updates are slow.
Payment is not that easy. Payments are highly regulated, which makes everything easier. You don’t just have to deal with various financial regulators, but also issues in the monitoring and reporting industry. All transactions must be audited, accounted for, verified/verified, and in many cases reported to regulators.
Any implementation must be approved by regulatory authorities. Risks need to be considered, not to mention a very strong anti-money laundering/fraud/compliance team. This task is more monumental than you might think.
Citi Bank, which has millions of customers, employs approximately 30,000 people worldwide in its compliance department. 30,000 people – think about it! And finally, Citi Bank needs to rent more.
Imagine a bank with 1 billion customers. Do you know whom people should work with?
Facebook already has money transfer licenses in the US and has also obtained a payment institution license in Europe. Gradually choose licenses in other parts of the world.
Due to its size, I wouldn’t be surprised if we start trading on Facebook within five years as soon as we speak.
In-app payments, paying for products/services online (on Facebook pages), point-to-point transfer, and even issuing (debit card) linked to your current Messenger account are all scenarios that will be underway within few years. It will take place. previously appears in. reality. Years.
Others have no chance!
The other players really don’t stand a chance. Let me correct – never say they will never have a chance – instead, let me tell you, others are essentially lost. Entering a competition where you really have to beat Facebook requires innovative thinking to save time.
Farhad Manjoo wrote a beautiful article: The Great Tech War Of 2012 (Apple, Facebook, Google, and Amazon are fighting for the future of the innovation economy). This is an article you should read and the best candidates in the payout battle are clearly outlined here.
Microsoft had a chance, but it wasn’t found (although Microsoft also received money transfer licenses).
When you compare social media platforms, think about which platform exists today? There are just a few: Facebook, Twitter, Linked In, and Instagram / Snapchat / Google+.