Facebook has announced a new service that will be available for the Messenger app
Facebook is making its first official entry into the mobile payments space. The social media company has announced that it will soon allow users of its Messenger application to send and receive money. The service will be free, but will see a limited initial launch in some parts of the United States. The launch will be taking place over the next few months, eventually be made available to all Messenger users in the country.
New service will allow users to send and receive money over Messenger
Facebook has partnered with Visa and MasterCard in order to make the service available. Those with Visa or MasterCard cards, as well as those with debit cards from a U.S. bank, will be able to transfer money through the new service. The service will be accessed through a “$” icon that will be added to the Messenger app in the near future. Once this icon is tapped, users will be able to note the amount of money they can send to their friends. All those using the service will have to link their financial information to the Messenger app.
Consumer information will be stored in a secure environment
For security purposes, users will have to use a PIN number to authorize money transfers. The company notes that all financial information will be kept in a secure environment that is entirely separate from other parts of Facebook. The service will also be monitored by fraud prevention specialists, who will analyze the service to determine whether or not suspicious activity is present among users.
Facebook will face competition from other companies entering the mobile payments space
Facebook has been showing strong interest in mobile payments for some time. The company sees a great deal of promise in this sector, largely due to the number of consumers that spend money online over their mobile devices. Facebook will be competing with other companies involves in mobile payments, such as PayPal, and may soon be competing with Twitter and other social media platforms that have recently entered the space.
Mobile shopping has been growing quickly in China over the past year
Mobile shopping in China saw tremendous growth in 2014, according to a study from iResearch. The firm’s study highlights the growth of mobile commerce throughout the country, noting that many consumers have begun to shop online and in physical stores with their mobile devices. This trend is not unique to China, of course, as mobile commerce has been seeing healthy growth throughout Asia. The region is considered one of the fastest growing mobile commerce markets in the world.
Mobile spending triples in China throughout 2014, reaching new heights and encouraging retailers
According to the study from iResearch, mobile spending tripled in 2014 over what it had been in 2013. More people opted to shop with their mobile devices and they were more likely to spend larger sums of money while doing so. Mobile commerce saw 239% growth over the past year, while conventional e-commerce experienced on 49% growth. Mobile commerce accounted for 33% of all online sales made in China in 2014, a significant increase from the 14% that was recorded in 2013.
Demand for mobile commerce services is on the rise among interested consumers
China’s mobile commerce scene is dominated by a few large companies, such as Alibaba, but there are many services that are available to mobile consumers. These services make it possible to shop for and purchase products in physical stores with a mobile device. Smartphone penetration is on the rise throughout the country, which is leading to a greater demand for mobile payment services. This demand is expected to continue growing as more consumers become comfortable with mobile commerce.
Expansion of mobile commerce will continue, powered by retailer adoption and the demands coming from consumers
Mobile commerce is likely to continue expanding throughout China, powered by the initiatives that many retailers and Chinese banks are taking to engage mobile consumers. Conventional e-commerce still dominates the retail space, but mobile is beginning to play a more important role therein. Retailers are beginning to understand that if they do not engage mobile consumers, they may be missing out on promising opportunities.
