Facebook forms financial group to focus on payments
The company believes that allowing such purchases makes advertising more valuable. CEO Mark Zuckerberg has said he is keen to expand in-app transactions. “As payments increase on Messenger and WhatsApp, and we are able to roll them out in more places, I think this will only grow as a trend,” he said during a recent call on results.
While Libra hasn’t quite taken off as a global cryptocurrency as the company had hoped, unifying all of the company’s disparate payment systems under one roof makes sense. Facebook Pay is already a good example; Just link it to your credit card or PayPal account and you can use it to exchange funds on Messenger, WhatsApp and Instagram.
Deploying payment systems in different countries requires obtaining approval from regulators, with whom Marcus has had experience during his time at Libra. Marcus said Bloomberg that it is useful to have this expertise in financial services regulation in his new role. “In the world of financial services, it is very different from traditional technology companies that are not regulated,” he told the agency.