In November of last year, Facebook launched a new payment system called Facebook Pay to further serve its vast user base. However, it indicated that it was a separate service from Libra, Facebook’s digital currency. Consequently, the launch of Facebook’s WhatsApp payment integration is their most recent move to actualize Facebook Pay’s mission of serving its huge product user base. Although Facebook has relentlessly pursued the majority of the financial service industry, WhatsApp could be one of the most prominent players.
The Power of Facebook’s User Base.
With Facebook Pay, Messenger, WhatsApp, and Instagram, users will be able to send money to friends, shop for goods, and possibly donate to fundraisers. Hence, rolling out a payment solution for over 2.5 billion users is a big bet on Cryptocurrency, judging from the previous interest in Libra. It is now easier for Facebook users to make payments hassle-free.
Facebook is the most popular social media platform worldwide, and it has recently integrated a WhatsApp payment in Brazil. According to the BBC, “WhatsApp has launched its digital payments service in Brazil, as the messaging app capitalizes on its popularity in emerging markets.”
What Facebook Payment Integration Means to Cryptocurrency.
Unarguably, Facebook’s interest in digital currency, specifically Cryptocurrency, will draw major stakeholders to the space. Imagine serving 2.5 billion users who combine crypto users and non-crypto users to expedite payments. This would displace other financial service providers and bring more users to the Cryptocurrency space, while expanding their conglomerate. Coincidentally, when Facebook succeeded in the Libra project, every user and business on Facebook, as well as partnering platforms automatically became Cryptocurrency users.
However, when Facebook first rolled out Libra, it was faced with many setbacks. Therefore, leveraging over 2.5 billion users, Facebook utilized its associated platforms: WhatsApp, Instagram, and other tools, as a force to reckon with in the digital currency solutions space.
Facebook’s Possible Limitations.
According to Harvard Professor Ndubusi Ekekwe, “It is difficult to survive in a world dominated by Facebook, Google, and Amazon.” Each one is disrupting various spaces, with its user base and market control. Nonetheless, the biggest threat to Facebook’s dominance in the Cryptocurrency and financial service industries is government regulations. Recall that regulation brought about the delay of the Libra launch and led some of the partners to abandon the project. However, Facebook is approaching governments to secure approval pending launch in specific countries, just as it had in India. Once the regulation issues are sorted out, Facebook will have the power to dominate the Cryptocurrency and financial service industries.
Okereke has a passion for researching blockchain and cryptocurrency. He enjoys creating long form educational content to inform others on the opportunities in this space.