Facebook is an worlds leading online social networking service. Its name comes from a colloquialism for the directory given to students at some American universities.Facebook wants to be more than a social network it is planning to facilitate financial services in the form of electronic money and remittances and electronic money.
Facebook is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process
According to FT, the authorisation from Ireland’s central bank to become an “e-money” institution would allow Facebook to issue units of stored monetary value that represent a claim against the company. This e-money would be valid throughout Europe via a process known as “passporting”.
Facebook has also discussed potential partnerships with at least three London start-ups that offer international money transfer services online and via smartphones: TransferWise, Moni Technologies and Azimo, according to three people involved in the discussions.
E-money and remittances would help Facebook be more relevant in emerging markets and build up its momentum to push into these markets. Last week, for example, Facebook passed 100 million users in India.
Already, Chinese Internet giants including Alibaba and Tencent have rolled out mobile payment initiatives as they seek to tap on e-commerce by replacing traditional payment methods to ease the friction of paying without bank-issued credit cards.
Author Venkatesh Yalagandula Follow us Google + and Facebook and Twitter
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