Facebook Payments International Limited (FBPIL) was recently added to the Bank of Spain’s register of e-money entities, as the company leverages its social media prowess to attract some of the P2P and mobile payments market
Many people may think of Facebook as the social media giant, but the company is increasingly expanding its reach into the P2P and mobile payments space. On December 30th, the company registered as an e-money entity with the Bank of Spain. This follows the granting of a license by the Central Bank of Ireland that applies throughout all 27 EU member states.
At Facebook’s F8 conference in April, the company announced it would open up its Messenger platform to a variety of new tools. The idea was to let users buy, shop and chat all within Messenger by adding bots. On September 12th, Facebook launched its latest version, which includes payment options and allows businesses to sell products and services all within Messenger.
Facebook has been working with Visa, Mastercard and processing companies Braintree and Stripe to enable users to input payment information without ever leaving the Facebook Messenger app. The strategy is designed to keep users within the app for as long as possible.
On September 12, Seth Rosenberg, product manager at Facebook, wrote
“Payments can now be integrated into messages, making it easy for customers to shop and purchase without leaving the app. Messages with payments utilize industry-leading controls and financial information is protected with bank-level encryption. As of today, payments will be available for select developers in beta … We expect to roll out this capability more broadly by the end of the year.”
Facebook’s move into payments is one of many ways the company can utilize its enormous user base. 2017 will no doubt see other functionalities added including new payment options.