Should banks be worried?

Written by Jason Anderson

 

Facebook have now (in the US to start with) launched their payment service for Messenger. It's incredibly easy to use - once a debit card has been added to your Facebook account, it's as simple as tapping a $ button in Messenger and entering in an amount. It's completely free to use - with no deposit or withdrawal fees - and the transactions happen instantly. So far, the service is being touted as a way to pay cash to your friends, but it's quickly going to morph into a way to pay for services and goods. Which goes some distance to explain why Facebook just bought a shopping curation site (The Find).

Undoubtedly this is going to apply pressure on PayPal, who are already taking a hit with ApplePay rapidly eating into their market. The question on everyone's mind now is "will Facebook someday go further and enter the banking space?"...