Will Facebook Messenger Be The Next-Gen Wallet?
Facebook, with the announcement of peer-to-peer money transfer on its Messenger app has joined the bandwagon of similar applications like SnapChat, Square Cash, and Venmo to name a few. When David Marcus left PayPal to join Facebook, it became evidently clear that Facebook is set on becoming a prominent player in the P2P money transfer market. There could not have been a better platform than the already popular Facebook Messenger to accomplish it.
Facebook is obviously not the first company to launch this service but is certainly in a better position to leverage its huge user-base and pose stiff competition to the ones already offering the service. The service aims to make settling the debts and splitting the bills, a part of the communication. It is definitely a great idea in the first place, and Facebook is indeed banking on this feature big time. According to an aytm survey, 33.8% of its 1.4 billion active users installed and are using the Messenger app.
The service is currently limited to the U.S. users, but will be launched in other countries in the near future. The mobile app users as well as the users of the desktop version of Facebook Messenger will have the access to the features once they register their Visa or MasterCard debit card.
Those who are apprehensive about the security aspect of the feature do not need to be worried as Facebook has put in place extra care and caution to ensure that the transactions are performed in a secured environment that is separated from the regular operations of the website.
Additionally, Facebook’s fraud detection team will overlook the operations and invoke extra security features if anything fishy is suspected. The users can therefore rest assured about the security and safety of the system. Dedicated user PINs and Applet’s Touch Id features will be in place to beef up the security around the application.
Facebook’s association with PayPal has been well known as it was handling a large part of the transactions that users performed while making in-app purchases on Facebook’s apps and games and also for the advertisements. However, the move by Facebook to launch its own money transfer product apparently seem to make them arch-rivals.
Intense competition is something that Facebook has thrust itself into as most of the chat applications like Snapchat, Wechat and Line either have this feature or are planning to launch it soon. However, taking into account a user-base of more than 600 billion people, Facebook certainly has the edge over the rivals.
To use the money transfer services and send or receive payments through Facebook Messenger, users are required to register their debit cards (MasterCard or Visa) on the Messenger which can be done by taping the “$” button. Once you are successfully registered, all you need to do is to tap the dollar icon and enter the amount of money you wish to transfer.
The money will be debited from your debit account and will be credited to the registered account of the beneficiary. To avoid any additional charges to the users, credit cards have not been permitted.
The launch of the payment service integrated with Messenger has not come as a surprise to the industry as induction of David Marcus in Facebook few months back had sent very clear signals across the industry that Facebook is coming up with something big on payment services.
With this service, Facebook wants the users to end the conversation where it began. Simply put, users will not need to navigate to any other application to make payment, settle some old debt, or even buy a service. For instance, if you have a coupon code that you wish to sell to a friend, you can do it right away and receive the payment instantly.
Facebook’s launch of payment services integrated with Messenger is seen as the attempt to consolidate its position as the next generation wallet for the users. There is a lot of scope to expand the service for other purposes as well. Whether the service is lapped up by the consumers is yet to be seen, but one thing that is for sure is that the payment services are going to be better and simpler for the users in the coming days.
About the Author
Ashni Sharma is a mobile app developer at AppsChopper and a passionate writer who like to share her views on the latest news in the digital world. Through her write-ups, she has been introducing several new concepts and innovations in mobile applications and the gaming domain.