Facebook, recently rebranded as Meta, has begun allowing some of its US customers to send and receive money through its messaging app Whatsapp.
It appears that Facebook is fighting back after failed attempts to get first Libra, and then Diem accepted by regulators. The conquest has begun again, firstly with a rebrand to Meta, and now by using their existing messaging app Whatsapp, to allow users to transfer value across the app network by way of Meta’s Novi Wallet.
This is small beginnings, but it seems that Meta is absolutely determined to use the value of its customer network to set up a payments service that can skirt around what has become familiar regulatory disapproval and pushback.
Stephane Kasriel, the lead at Novi Wallet, went on to Twitter to start laying down the family orientated messages, perhaps in a bid to try and play down Facebook’s chequered history of mismanagement of customer data.
Kasriel added a tweet on this subject, giving an assurance that Whatsapp privacy wouldn’t be compromised by the addition of the Novi Wallet.
Meta has been looking on from the sidelines as the crypto sector has been disrupting the payments industry. It must have been galling to have not been allowed to enter this space until now, but with a customer network of more than a billion users it could certainly become a dominant player.
Whether regulators will allow it to continue on this path is one thing, and another would be customer trust. However, with the resources at its disposal Meta should be confident that it can gain the necessary approval from regulators and customers alike.
The concept of the metaverse is so huge that there is probably room for everyone. If Meta should behave, and treat customers well, who knows how far it can go. However, with decentralisation starting to become a real drive for those in crypto, Meta may well have to adapt beyond what it might envisage at this point in time.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
