Wednesday April 23rd, 2014

Facebook might launch banking service soon

If banking services are already allowed and use in China through platform such as Baidu and WeChat, it is not the same in the occidental world. However after the failure of the Gift Cards service, Facebook seems ready to monetize its audience and offer them a through banking service.

Always looking for innovation, Facebook seems taking a real e-commerce orientation allowing the firm to confirm its leader status on social network.

A mitigated success of previous monetization experience

If we know that Facebook platform really influence its users (a bit more than a billion today) through brands that are using it, we can be surprised by the fact that F Stores don’t grow faster. In fact, a Nielsen study showed that a « friends » recommendation about a brand or a product could multiply by 4 purchase intentions. However brands do not want to take risk and chose to not multiply their initiatives through Gift Cards and F Stores, some of them choose to even close those stores.

Are banking services the key to success?

However Facebook seems decided to break through this step. The social network ask the Irish regulatory department the authorization to propose new services such as stock money on the platform to purchase new products or to organize money transfer.

The Financial Time said that Facebook is now negotiating with English firm specialized in international payment helping them to organize this change (TransferWise, Moni Technologies et Azimo).

If the demand is accepted, it will be a huge advantage for Facebook to its concurrent, especially Google. The social network will be engaged on the same path as Baidu and WeChat which launched respectively a saving service and a storage service.

Source: Le Figaro


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