Is Facebook About To Give The Banks A Kicking Too?

Is Facebook About To Give The Banks A Kicking Too?
SHARE
THIS



Banks reap huge rewards from transaction payments, and seemingly offer little in the way of service. That’s exactly the kind of slow moving carcass-on-a-plate incumbency that the dotcoms have turned into dinner-time repeatedly over the last two decades.

Facebook made a long anticipated entry into the payments market today launching a facility in the US to enable friends to send each other money via messaging – and all fee free.

The opportunity is potentially huge, and Facebook now joins Apple and Google in chasing the market.

In the recent Walker Sands’ 2015 Future of Retail Study researchers argued the trends point to a major player able to seamlessly connect with today’s consumers taking the lead in the mobile/ digital payments space. According to that study:

Cash use continues to be on the decline – only 11 per cent of consumers have paid for something in cash in the past day and 59% of consumers carry less than $20 in their pocket.

Consumers are waiting for a trusted source – while only four per cent have used Apply Pay, 18 per cent say its introduction makes them more likely to make a purchase with their smartphone in the next year. The number rises to 36 per cent when asking Apple users.

Consumers – especially younger generations – are looking for the convenience of peer-to-peer payments – Half of consumers ages 18-25 say they are likely to exchange money with a friend or colleague via a mobile application such as Venmo, QuickPay, etc. in at least one payment scenario, compared to only 19% of those ages 46-60.

However, there’s no major loyalty yet to mobile payments: two per cent have used Venmo and 16% have used banking applications, such as QuickPay, to transfer funds.

Consumers are most likely to use mobile payment applications for social events (and Facebook is a social tool): Restaurants (24 per cent) and bars (17 per cent) were the most popular reasons consumers cited for using peer-to-peer applications.

The Social Network is parlaying eight years of experience it developed processing several hundred million transactions a year for advertisers and games developers and turning its attention to services for consumers.

Who you gonna trust?

Facebook played up its security credentials which is a critical consideration if it wants to take business from traditional financial services providers.

It says the payment systems are kept in a secured environment separate from other parts of the Facebook network which receives additional monitoring and control. And it says it has built a team of anti-fraud specialists to monitor for suspicious purchase activity to help keep accounts safe.

For great insights into disruptive business models visit Daze of Disruption now and secure your ticket to Australia’s best digital transformation forum.

This article first appeared on www.which-50.com

Please login with linkedin to comment

Latest News

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.
  • Opinion

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.

In this guest post, CEO of content marketing agency Edge, Fergus Stoddart (pictured below), says brands would do well to play on their customer’s loyal tribalism… Normally over Christmas, any downtime is spent asleep on the sofa, mildly lubricated with a belly full. This year, with the Ashes in the background, I managed to stay awake […]

Opinion

by B&T Magazine

B&T Magazine
Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour
  • Marketing

Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour

Red Bull Holden Racing team took the covers off its 2018 Holden Commodore Supercar today. Floating on a barge in Farm Cove, the harbour provided a stunning backdrop for the reveal. Teammates Jamie Whincup and Shane van Gisbergen have won the past two championships for the squad. Whincup, now the greatest of all time with seven Supercar’s titles, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]

SpotX Appoints Gavin Buxton As Asia MD
  • Advertising

SpotX Appoints Gavin Buxton As Asia MD

Video advertising platform SpotX has announced it has appointed Gavin Buxton as managing director of Asia to lead the company’s expansion in the region. Buxton has over 17 years’ global experience in the digital advertising space, having worked in leadership roles at tech and publishing companies, including Microsoft, Turner Broadcasting, and LinkedIn, with the last […]

Big Mobile Doubles Down On Ad Tech & Rebrands
  • Advertising
  • Technology

Big Mobile Doubles Down On Ad Tech & Rebrands

B&T Awards 2017 finalist Big Mobile has unveiled a fresh look to reflect its new ad tech credentials. The company successfully pivoted its business from ad network to mobile ad tech vendor when it announced a joint venture (JV) with Widespace in October last year. As a result of the business changes, Big Mobile wanted […]

March One Appoints New Senior Account Manager
  • Advertising

March One Appoints New Senior Account Manager

Independent ad agency March One has appointed a fresh face to the team, with Melanie Tozer to reinforce its mission to put humans first as a senior account manager. Tozer (pictured above), an up-and-coming talent from New Zealand, will align her extensive experience in FMCG marketing with March One, having worked on accounts for Bunnings […]