What is Facebook Focused On With Its Latest Payment Initiative?

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2018 has not been an easy year for Facebook. Between data breaches and information coming to light that the platform was potentially used to influence the latest US presidential election, it seems like every week brings a new set of challenges for the company. Although they’ve been hitting plenty of speed bumps, it has not stopped the giant social network from moving forward.

Over the last few years, one of the areas where Facebook has invested a lot of capital and resources is into virtual reality technology. While VR may still have a very bright future, all of their work has failed as of yet to move the needle in a truly meaningful way. On the other hand, there are some other initiatives that Facebook has pursued which may be less cutting-edge but have already shown a return on their bottom line.

Payment is the perfect example of that type of initiative. This is not only an area that the company already understands but one where they continue to push hard to take market share from some of the other big players. To get a better understanding of how Facebook is approaching payments, let’s take a closer look at their latest initiative:

A Dedicated Payment Platform

When Facebook first dipped their toes into the payment waters, it was through their own site. Then with the acquisition of WhatsApp, they were able to experiment with some new payment features. And over the last six months or so, they’ve been doing the same type of thing with Instagram.

Although each of those pursuits has achieved varying levels of success, it seems that Facebook is setting their sights even higher. The reason is multiple sources say they are working on an independent payments platform. As of now, some reports have said that instead of P2P payments, this app would enable peer to merchant payments.

If you’re wondering how Facebook is suddenly going to roll out this type of app into the competitive US market, the answer is they’re not. Instead, they plan to launch it in India. There are several reasons why debuting this app in that country makes a lot of sense.

The first is the sheer size of India. Even though the country is still going through a lot of development, it is home to more than two billion people. The next is Facebook hasn’t experienced nearly as much negative PR in India as the United States. And because India is a very mobile-first market, Facebook is likely hoping to nail a very contained shopping experience.

As far as what this may mean for US merchants, that ultimately comes down to the success of the app. If Facebook is able to get its users engaged, there’s a very good chance they will put a lot of resources behind rolling out the platform in the United States.

Even if Facebook isn’t able to completely disrupt payments, it’s safe to say they will continue influencing how consumers move money online. If you want to be sure that it’s always easy for your customers to pay online, choosing a great processing company is the best way to make that happen.

Posted on Monday, August 20th, 2018