Facebook has decided to go further into commerce with the creation of a new group directed at payments. The name of the group is called ‘F2 internally’, and is meant to take care of all payments-related projects including Facebook Pay, the company’s own e-commerce system. The leader of the group is David Marcus, who is also the co-creator of Facebook’s much-maligned Libra cryptocurrency project.
The group also contains other Facebook commerce projects such as Novi, a digital wallet designed for Libra, and also WhatsApp PAy, which came into the market few months ago in Brazil. The idea here is to unify payments on the company’s various platforms such as Instagram, Messenger, and WhatsApp under one roof.
The company believes that enabling such purchases makes advertising becomes more valuable. Mack Zuckerberg – the CEO of Facebook said that he’s quite focused on growing in-app transactions. “As payments grow across Messenger and WhatsApp, and as we’re able to roll that out in more places, I think that will only grow as a trend,” he noted in a recent revenue call.
Although Libra hasn’t quite taken off as a global cryptocurrency the way the company had hoped, the unification of all the company’s disparate payment systems under one roof makes sense. Facebook Pay is already a good example, all you need do is to link it with your credit card or PayPal account, and you can use it to exchange funds on Instagram, WhatsApp, and Messenger.
Rolling out payment systems across different countries does not require getting approval from regulators, which Marcus has had experience with during his time with Libra. Marcus said that it’s helpful to have this expertise in financial services regulation in his new role. “In the financial services world, it’s very different than traditional technology companies that are not regulated”.