Facebook enters mobile money sharing market

Facebook is entering the world of economics.


Facebook is breaking away from its’ traditional style, and entering the booming market of mobile money sharing. The company is using its’ already operational messaging system to transfer money from one user to another. All the users need to do is link his or her debit cards to their Facebook account, tap on a dollar sign in the app, type in the amount they wish to transfer, and press send.

Facebook, was not the first company to offer viral money sharing. Other apps, such as Snapchat, have offered instant money transactions between users. A top competitor for Snapchat’s Snapcash, is Venmo, a popular money-transfer app owned by PayPal. With Facebook trying to make its way into this aggressive market, it will force the major companies to compete head to head.

One thing that makes Facebook stand out from its competitors is, the money being transferred is not connected to a Facebook account, rather the individuals bank account. This allows the money flow to stay consistent with the way a user would traditional handle their money. The direct deposits to a personal bank accounts will be a big attraction for many people.

With Facebook joining the money market, it opened the door for technology to cut in on the banks turf. Two out of every three dollars spent in America are done so by contact less payment. Apple is introducing a new Smart Watch in which customers can pay for their items with a simple wave of the wrist. Contactless payment will make it easier for consumers to transfer money. With that instant money movement, it can cause a step rise in consumer spending.