Facebook renews its push into mobile payments

London, (PresseBox) - According to the Financial Times, Facebook is just 'weeks away' from getting an e-money license in Ireland that would allow its users to hold and exchange money on the social networking site.

Eden Zoller, m-payments experts at Ovum explains the rationale behind this move:

"Ovum predicted Facebook would launch a renewed push into mobile payments this year* and its focus on mobile money transfers makes sense. These applications are gaining good traction with consumers, particularly in emerging markets where Facebook has ambitions to be the prime platform from which people access, and interact with Internet services. Facebook's user base in emerging markets is growing fast (some 200m in Asia alone at Q4 2013) but when it comes to mobile payments and financial services, Facebook will have its work cut out and the biggest challenge will be consumer trust.  Ovum's 2013 Consumer Insights found that only 1% of respondents trusted social networks like Facebook to deliver m-payments, in sharp contrast to the much higher levels of trust placed in banks (43%) credit card companies (13%) and mobile operators in the context of emerging markets (11% in China)**. It also remains to be seen how well Facebook will execute m-payments given its poor track record with m-commerce applications.  The Facebook Credits virtual currency got nowhere and was wound down last year, while the main m-commerce offering in place today, Facebook Gifts, has so far received a muted response from consumers. 

*Ovum reveals 2014 will be a year of innovation, disruption, and consolidation in mobile payments

**Consumer Insights Snapshot: Mobile Commerce


Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is an Informa business.

Press releases you might also be interested in

Subscribe for news

The subscribtion service of the PresseBox informs you about press information of a certain topic by your choice at a choosen time. Please enter your email address to receive the email with the press releases.

An error occurred!

Thank you! You will receive a confirmation email within a few minutes.

I want to subscribe to the gratis press mail and have read and accepted the conditions.