According to a Forbes report yesterday, Facebook is going after PayPal and the payments business through instant messaging. It sounds like a monumental move for the social media giant but I wonder why we need another payment option.
First a disclaimer, I closed my Facebook account several years ago and I've put all my networking energy into LinkedIn so I likely have a bias. Second, I moved my personal transfers to electronic payments in November of 2011 and brought my companies into the same regime mid 2012.
Today, most of the financial transfers we do are through the banking system or through Interac. If you want to improve my life help me find a way to transfer to international payees through the systems I already use.
Facebook, does have big numbers of potential clients. I wonder how many of them will put up with the wait, "transfers may take a few days depending on the financial institution". I wonder how many already using E-transfer will see an advantage from the financial service they currently use. Finally, I wonder how strategic a 'me too' approach will work when the banks hold all or at least many of the cards and have an interest to provide their own services.
As the world gets smaller, it is becoming obvious there will be a concentration of primary services with those who already own a space and are providing a positive client experience. But I can still be surprised.
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