It’s official. David Marcus, the man behind PayPal’s online payments service, will be joining Facebook to head its messaging products. It is being assumed that Facebook might take advantage of Marcus’s payment expertise for its messaging products.
Remember the trends that David talked about earlier this year? Things that will transform the payment space. His expertise might someday bring payment solution for Facebook’s messenger as per Re/code. The messenger app processes 12 billion messages on daily basis and boasts of 200 million monthly active users. Since Facebook doesn’t hosts advertisements on messenger, so integrating a digital cash system could add an effective revenue stream for the app.
David Marcus joined PayPal in 2011 when PayPal acquired Zong, the company he created in 2008. David became PayPal’s president in April 2012. At PayPal, he helped in building on great scale, resources and technological innovation to deliver products that delight customers and will revolutionize payments by reinventing the shopping experience for businesses and their customers around the globe.
Facebook has already made forays into the payments space. A couple of month’s back Facebook had applied for an e money license in Ireland which would enable it to offer peer-to-peer money transfers in Europe. With Facebook pages having huge fan following, banks also see it as an amazing channel to engage with customers. There are already some banks who offer Facebook based money apps:
First National Bank of South Africa: it has tied its mobile banking application to Facebook. It enables users to run the app in the social media site itself without leaving it.
CommBank: the Australian bank offers CommBank Kaching Facebook app. It makes banking in Facebook possible without leaving the platform. Customers can make peer-to-peer to Facebook’s friend list.
ICICI: the Indian bank launched a Facebook app which allows customers to check account information and transact.
RBC: the Canadian bank worked with Facebook to enhance its RBC Canada app to allow customers to send Interac electronic transfers to contacts on Facebook messenger.
ASB: the New Zealand based bank launched mobile payments app to send money to friends via Facebook.
In Korea, the popular KakaoTalk mobile messenger will start its mobile wallet service later this year. For online and mobile stores, users can select Bank Wallet Kakao as means of payment. The service will also work with NFC card readers as well as ATM machines.
These cases clearly hint how effective Facebook as a payments platform can be. There’s no harm in citing that payments option in messenger will be a big game-changer. With one of the world’s best payments expert in tow, Facebook can certainly be expected to change what we perceive it to be.
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