Does Facebook want to become a financial service?
Gone are the days when social networking sites were just used to keep up to date with friends. Over the last ten years these small social media platforms have transformed into massive, multi-billion dollar organisations.
Social giants such as Facebook and Twitter have become incredibly useful for brands conducting content marketing, mainly for their ability to reach consumers all around the world.
Last year Facebook, the world’s largest social networking site, earned over $7 billion in revenue.
It seems the next thing on Facebook’s agenda is to expand its financial arms. The social networking site recently applied for an e-money licence in Ireland and is expecting to receive it in the next few weeks, according to a report by Financial Times.
This could mean Facebook users can use the site to store electronic money and remittances, which could open up fresh avenues for social media marketing.
If the application is approved, this would mean Facebook’s e-money will be valid throughout the whole of Europe.
“Facebook wants to become a utility in the developing world, and remittances are a gateway drug to financial inclusion,” a source told the Financial Times.
Facebook already has authorisation for money transfers in the US to an extent. For instance, last year the site received over $2 billion worth of transactions, mainly from games, according to the Securities and Exchange Commission.
The report also revealed Facebook has also been in touch with P2P money transfer services TransferWise, Moni Technologies and Azimo about setting up a possible partnership.
TradeWise could be a likely choice, since they recently hit the $1 billion in transfers milestone, according to Tech Crunch.
Facebook has recently been buying some high-profile businesses. This year so far they have acquired the virtual technology website Oculus, as well as the instant messaging service WhatsApp.
These investments tell us Facebook has plans to advance itself not only as a social media provider, but as an enterprise in itself. Whatever strategic move Facebook makes, it will undoubtedly continue to be a useful content marketing tool in the foreseeable future.
Posted by Dylan Brown