Why Facebook has entered the money transfer market

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For both casual and serious Facebook users, it’s common knowledge that this particular social media platform has a habit of changing design and user interface elements on a regular basis. Recently, Facebook launched one of the most significant evolutions of its platform to date - the introduction of a money transfer service which allows individuals to quickly send cash to one another at the touch of a button.

Experts have engaged in intense speculation as to what exactly Facebook’s motives may be. After all, money transfer has become a highly competitive domain which is already populated by industry heavyweights such as PayPal. Perhaps anticipating the statements that critics would be quick to make, Facebook has stated that their new transfer services are highly secure, featuring some of the most state-of-the-art encryption and security protocols in existence today.

Believe it or not, this is not Facebook’s first experience with online payments. The company has long provided users with the ability to store their credit card information on file in the event they wished to purchase a game or other “perk” within the social media platform. Essentially, the new money transfer system is simply an evolution of what already exists. Facebook is not alone in their attempt to secure a piece of the highly lucrative e-payment marketplace. Over the past year, Apple and Google have also launched their own payment systems which feature similar functionality and transfer-related features.

It remains to be seen as to whether or not this new system will make a serious impact on the current money transfer industry. Given the fact that Facebook remains one of the world’s most profitable and in-demand companies, it is likely that Facebook’s newest addition to their platform will be given the financial and technical support it needs to flourish. It’s also important to note that Facebook’s money transfer systems could also be quickly implemented into the WhatsApp platform, considering the former now owns the latter after a recent $22bn purchase.

Those who are interested in learning more about this particular development can read more on Facebook’s official website. It will be quite interesting to observe how this system develops in upcoming months.

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Isuru Karavita

He graduated from the university of Hertfordshire with a BEng(Hons) in Digital Communication and Electronic Engineering. 

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