Tech & Gadgets

Facebook to launch ?Facebank? that will allow users to store and exchange money online

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Facebook Inc. is aiming for the approval of Ireland?s central bank to operate a Europe-wide e-wallet service that will allow users to store and exchange money online, rumors said.

Reports said that Facebook is currently in negotiation with the Ireland?s regulators aiming for their nod to add banking services to its list of good turn offered to its users.

With the said e-wallet, users will be able to store money in their social accounts and use it for transactions on the Web via smartphones.

One analyst said that Facebook’s focus is to allow its social customers to make online payments via mobile.

With Facebook having 1.3 billion active monthly users and 680 million mobile users, analysts believe that Facebook can stand and make a significant impact in the payment services industry.

Lafferty Group, a major provider of knowledge services for the financial industry worldwide said ?As well as having implications for the rapidly expanding global electronic payments market, the anticipated announcement will provide a boost to Ireland.”

Lafferty Group CEO Robert Grealis, furthermore said, ?We think that Facebook has enormous potential in the e-payments business ? both in developed and emerging markets ? and wish it well. E-money in its various forms is now enjoying explosive growth around the world. Recent research undertaken by Lafferty Group?s Westport-based research centre has found that several Latin American countries are particularly well-positioned in the field of mobile money, not least because of their willingness to allow telcos and others to accept and store deposits which allow them to issue e-money, thereby compete directly with banks.?

It could be remembered that early last year, it unveiled reloadable Facebook Cards, similar to debit cards in usage and available in a variety of physical and digital stores. Also, Facebook launched the virtual currency Facebook Credits in 2011 in order for users to pay for games on the social network.

However, there are studies and surveys which results are inconsistent with Facebook plan and need to overcome like the Ovum’s 2013 Consumer Insights where it was found that only 1 per cent of respondents in the survey trust social networks like Facebook to deliver mobile payments.

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