Okay, seen a lot of companies come and go when it comes to competing with paypal (anybody remember stormpay?).
Then google, amex, and amazon jumped in with their own schemes, none of which ever really gained traction.
Now comes facebook!
We all know how huge they are and how many people use facebook daily.
Facebook had their own digital currency, but recently dropped it for real money in dollars, yen, pounds, etc.
Now they are in talks with major banks to have facebook be the gateway to those banks.
Last month, the company made a very significant announcement, when it revealed that it would ditch Facebook Credits (historically used to pay for virtual goods within Facebook app) in favor of real, native currencies (Dollars, Pounds, Yen, etc.).
The company didn’t reveal any specific plans to offer payments for goods and services in the physical world, but the move clearly puts Facebook in a position to compete more directly with PayPal (which you can use to pay at places like Starbucks, by the way).
Over 900 million people have Facebook accounts, which are easily accessible via mobile phones, in users’ pockets at most times of the day. If Facebook can convince users to keep their money tied to their Facebook accounts, the company could have a tremendous advantage in the payments space, particularly since users are already spending so much time interacting with content with those accounts.
Facebook obviously has a major hurdle to climb before the majority of users start putting their money into their Facebook accounts, or doing any banking with them. The company doesn’t exactly have the greatest reputation when it comes to user privacy, and that’s a major problem when you’re talking about money.
So, can facebook jump the hurdles in the way, like privacy and hackers, etc?
If so, would you do your banking with them?
Would you use them instead of paypal?
Read all about this here: