Facebook to roll out payments feature on Messenger
Takes on the Financial Sector
Payment companies are seeking to simplify the process of transferring and trading money from mobile point-of-sale solutions to remittances to payday loan alternatives. Facebook has developed new technologies to circumvent the traditional ACH network. Facebook currently has over 1.39 billion users in its eco system. This enormous user base dramatically increases the odds of disrupting the banking industry. Vast majority of society has transferred over to mobile application usage for their daily routine. This mobile dominance will catapult Facebook payment feature supreme over time. Facebooks vision is “connecting the World”, and transitioning into the payments business meets their strategy of offering free communication to everyone in the World while producing a profit for the business.
The banking Industry is one of the few industries that has stayed true to its roots; brick and mortar, face to face transactions, and reliable without much innovation. The consumer of the past demanded this from their bank, now as that population is growing older, the new generation of millennials demand a completely different way of banking. They prefer to have as little face to face interaction as possible and if it can’t be done through their mobile phone it won’t be done. Traditional banks have done very little to appeal to the younger generation, which will replace the baby boomer generation in the years to come. Banks have developed mobile banking applications, but there is a significant learning curve associated with it as well as high fees depending on the service performed.
Facebook’s peer to peer money transfer in their messenger application will have no learning curve. Every one of the 1.39 billion user base will be able to send money to friends, family, rent, utility bills, etc. as simply as sending a text message that they already do on a daily basis. Not only will the...