Facebook (FB) is hoping to get a grip on yet another emerging market. It appears that they’re now making efforts to service electronic money and remittances by entering the money transfer business.
FB has made a request to the central bank of Ireland to become an approved “e-money” institution, according to Monday morning’s Fox Business news report. This merit would give the largest social network in the world the ability to “issue units of stored monetary value that represent a claim against the company.”
Facebook to Partner-Up with London Money Transfer Startups?
Facebook also seems to be interested in taking on partnerships with various London startups. They all offer services such as online and smartphone international money transfers. So far, the three groups they’ve been talking to about these partnerships include:
- Moni Technologies
Yesterday, Financial Times reported in “Facebook targets financial services” that Facebook offered Azimo $10 million for the recruitment of one of their co-founders to become FB’s business development directory. However, FB refuses to comment on what they call “speculation and rumors.”
Payment Processing Could Increase Facebook’s Revenue Streams
On Monday morning, Facebook shares on the Nasdaq Composite outpaced a 0.62% gain. The social media network is now up nearly 9% so far this year. That’s a 116% increase over the last 12 months.
Currently, the majority of Facebook’s revenue is generated through advertising sales. Making the shift into financial services could be a serious boost for the social network’s profits.
However, there are some concerns. Users tend to have severe concerns when it comes to FB privacy policies. Some speculate that this could lead to an uphill battle for FB as they seek the trust of consumers within the financial transactions market.
Facebook’s eMoney Business
Spearheading the e-Money project is Facebook’s VP of platform partnerships, Sean Ryan. Ryan was added to Facebook’s game development team as director of games partnerships on January 3, 2011.
According to Fox Business, Facebook is already a US-authorized payment processor for app developers who charge users for making in-app purchases. Now, it’s just a matter of expanding that market into bigger payment processing services.