Facebook Pay Launches as Lights Continue to dim on Libra
Facebook Pay, a cross-application payment service launched by Facebook, will go live for United States customers this week. The service will be integrated across Facebook, Instagram, WhatsApp, and Messenger. Libra continues to face opposition from global regulators and Facebook Pay may be their way of showcasing their capabilities, November 13, 2019.
Facebook’s Payments Plan
One way or another, Facebook has already decided that a foray into financials is on the cards as they announce the launch of Facebook Pay. Users can set up the interface across the social suite of Facebook, or they can choose to use payments from only one app.
Real-time customer support and detailed payment history are available on the platform, and users can add funds via debit card or PayPal. They have explicitly stated that is completely separate from Calibra.
There was no pre-announcement news for Facebook Pay, although testing of the interface was reported months ago and this was assumed to be a part of Libra. Facebook seems adamant to become a key player in the payments sector, and the hasty rollout of Facebook Pay is not only evidence of that, but it also shows the company has contingency plans.
Libra is aiming to be launched with the help of 20 odd global companies and has been contested by regulators in Asia, North America, and Europe. Uber, Spotify, and Lyft are a few companies in the Libra consortium that are reputed and trusted by customers. In light of Facebook’s poor data management practices, the one lifeline Libra held onto was the involvement of other players. With Facebook Pay, this benefit is completely discarded.
Will Facebook Emerge Successful?
One thing people seem to have undermined this entire time is Facebook’s political arsenal. Libra is being perceived as an inherent risk to the global financial system, and thus, are on the receiving end of an onslaught of condemnations.
Of late, the narrative around Libra has shifted from ‘private currency’ to ‘payments rails‘ as David Marcus, head of Calibra, offered more clarity on the project.
If Facebook decides to lobby politicians and clearly explain that the dollar’s dominance is not being harmed, they just might get clearance for launch within the United States.
At the same time, it’s important to note that bureaucrats are quick to succumb to lobbying efforts of companies like Coca Cola and Del Monte that affect human health as opposed to financial reform.