Facebook’s push into peer-to-peer payments via its Messenger app will unsettle the recently installed incumbents by positioning it as an extremely competitive option.
Facebook has added the option to send money to your friends through Messenger – for free.
Venmo, Paypal’s popular peer-to-peer payment service charges 3% of the transferred amount. Venmo offers more options for the funding of the service providing for both credit and debit cards, Facebook Messenger payments may only draw from a debit card account. However, with roughly 220 million monthly active users in North America, Facebook has a readymade market to build upon on its outset
Mercator Advisory Group believes the addition of peer-to-peer fund exchange to Facebook Messenger also lays the ground work for businesses to actively sell to consumers on the social platform, much in the way that Pinterest has expanded its own commercial capabilities.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies Advisory Service at Mercator Advisory Group
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