Back in April we had reported that Facebook was seeking regulatory approval for providing financial services. Today, -hacked- images appeared on the internet, proving that the social network has overcome any obstacles and has started providing payments functionality.
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More specifically, it seems that payments and deposits among friends can now be made through Facebook Messenger app. Money can be transferred from one friend to another, using a similar method to that of sending pictures. Users can choose whether they want to use an existing card or add a new one. Reports claim that there’s an in-app PIN that provides extra security throughout the transaction.
For the time being, plans state that payments through Facebook Messenger will be from one person to another, with group payments being underway, according to a note in the part of code that was revealed.
— Andrew Aude (@andyplace2) October 4, 2014
It’s still unclear whether Facebook will charge a fee for each transaction. In this case, revenue and profits estimates will have to be revised, possibly bringing the share price to even higher levels. From a strategic point of view, this new update could initiate competition with Square or PayPal and, at the same time, reduce the market share of other messaging apps.
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Photos courtesy of TechCrunch