Facebook may be eyeing a significant move into the world of mobile payments. The company is close to receiving regulatory approval in Ireland to launch a service that would allow users to store money and make electronic payments through the social network, according to a report in the Financial Times. Via link
We can certainly see Facebook’s ongoing unbundling strategy taking place. This move into the payment space puts Facebook in competition with Paypal and other services alike.
This is Facebook second attempt into the payment space. In 2011, they tried it with Facebook credits but it did not work out. So it would be interesting to see how it works out this time but it won’t be easy with all the regulatory issues and operating risks.
To me, it seems like big Internet companies are all looking into payments. Google is in it and Twitter is looking into it. The same is true for Internet companies in China, Alibaba with Alipay and Tencent adds payment into WeChat. So besides knowing how you interact online, it would be great for these companies to know how you spent, just like the banks do.
in the future, tech companies might be bigger than the banks or maybe it is already happening.