Facebook may be looking to get into the digital wallet space, and has plans to turn Facebook Messenger into an “Everything App” that will replace many others found on your smartphone, according to a report by The Information.
The report said that some of the source codes discovered in the latest version of Facebook Messenger app include commands like these “pay in person,””pay directly in Messenger when you pick up the item,” and “no cash needed.”
But Facebook declined to comment, making it unclear right now whether those features will ever actually take off the ground. And if true, Facebook may be planning to compete against companies like Apple, PayPal, Google and Samsung, who have been in the digital wallet space since 2011.
The idea of Facebook Messenger getting into the digital wallet space may not come as a big surprise to tech people, considering the person running Messenger, David Marcus, had served as PayPal’s president before Facebook picked him in June 2014.
Marcus spent three years at industry-leading payment platform PayPal. Marcus was already in the mobile world when Google introduced its Google Wallet, and PayPal unveiled a showroom called PayPal Shopping Showcase in New York City.
This is not the first time Facebook has got into payment space. In March 2015, Facebook Messenger made its first foray into the payments market by allowing friend-to-friend transaction, similar to what PayPal offering in the market. However, unlike PayPal, Facebook did not allow users to make credit cards as payments, due to the processing fees involved, which the company was still not ready for then.
Getting into the mobile payment action is not an easy task for Facebook, it would need cooperation and backings from several financial institutions to create the appropriate infrastructure and technology that can handle these kind of transactions. When Apple Pay first launched its mobile payment system it worked with banks to incorporate security standards in it payment platform.
Mobile payments are growing fast and it expected to reach $142 billion in volume by the year 2019, according to the recent study made by Forrester Research .
Even if Facebook moves forward with their mobile payment plans, it may take some time and huge amount of resources before consumers can use such feature. It took Apple almost a year to get Discover Financial on board with Apple Pay. Discover Financial is one of the largest credit card issuers in the United States, and one of Apple’s biggest payment partner.
Whether or not Facebook’s plans are set on target, one thing remains certain. With the growing interest in mobile payment, individuals are not being left with a shortage of options. And for the companies like Apple and Facebook, they simply won’t stop chasing the new market.
Picture Courtesy: LPS.1/Wikimedia Commons
Video Courtesy: CNN/Youtube.com
Watch the video below to learn more about Facebook’s plans for mobile payment service: