More and more social media platforms are opening the door for their users to exchange funds on their platform. For instance, Facebook has now introduced a ‘Send payments’ feature within Messenger, increasing the competition in the arena of mobile payments, namely with PayPal. Messenger payments require a debit card on both ends of the transaction, and there’s no cost to use the service.
Facebook understands that there’s a great opportunity to tie in users more into their brand. After all, the average Facebook user spends a lot of time on the platform on average per week. Naturally, they are slowly introducing features which will hope to tie in users more to their brand. The payments feature is just one of many which have been released on the platform and one of many to come.
Others included a Story feature, which replicates the intuitiveness of Snapchat in that it also similarly allows users to capture moments worth sharing throughout the day. Then there’s the fact that the Messenger app also offers users the freedom to text users via SMS through the app, in an attempt to move users away from their standard SMS app.
Similarly, Google is seeking to do the same thing with its userbase, integrating Google Wallet into Gmail on mobile. Users can now request money from anyone, including those who don’t have a Gmail, with just a tap of the attachment icon, which then gives you a drop-down list from where you can choose to send or request money. The entire process takes place within the Gmail app, which means there’s no need for Google Wallet to be installed.
Considering users already have many of their card details, the service is likely to use more than Facebook’s offering, where users have to first add their debit card details. Google already has millions of customers who have their payment details linked to their profile due to the Google Play store for Android. Snapchat similarly offers the ability for friends to pay others via Snapcash, and the messaging appChat is now becoming a mobile payment giant. In the future, we expect more apps to introduce their cash exchange offerings for their users – at no extra cost.