In news that might offer web hosts an alternative means of online payment, a number of sources on the Internet have suggested that Facebook might be planning to offer financial services. A report in the United Kingdom’s
Financial Times (FT) newspaper mentioned that the services Facebook may offer could include allowing users to put money in an account to be used to pay for things online and make online money transfers. The service will initially only be available in a handful of selected regions.
As a means of achieving its goals, Facebook is, according to the report, considering partnering with at three London start-ups involved in online international money transfer services and transferring money by smartphone. The companies are Azimo, Moni Technologies and TransferWise.
The FT report went on to suggest the social network was seeking approval in Ireland to become an "e-money" institution, and this approval would allow it to operate its financial services across Europe. Approval might only take a few weeks to obtain. Once established in Europe, Facebook’s service would be well placed for expansion into developing countries where Facebook could become a full-fledged financial institution.
Facebook is obviously no stranger to online financial transactions, and currently takes a fee of fee of up to 30% for facilitating payments. According to documents held at the Securities and Exchange Commission in the United States, Facebook managed transactions totaling $2.1 Billion in 2013.
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