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Facebook preparing e-money service to rival PayPal

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Facebook is reportedly preparing its own mobile payments service to rival the likes of PayPal.

As time goes on Facebook is looking more and more to make its mark on a variety of industries, with its recent acquisition of Oculus Rift just one example.

However, the latest news suggests Facebook is looking to provide a financial service that would allow you to store money, pay and exchange with others all using your Facebook account.

According to “several people involved in the process” speaking to the FT, Facebook is only weeks away from getting regulatory approval from Ireland’s central bank to become an e-money company.

Facebook has also apparently been in talks with at least three London start-ups that already offer international money transfer services online and on mobile devices. These small companies include TransferWise, Moni Technologies and Azimo according to the sources.

The social media site is already authorised for some money transfer forms in that it can process payments for developers charging for in-app content.

Of course, Facebook said it does “not comment on rumour and speculation” when it was contacted for a statement.

If Facebook had the ability to offer financial services in the form of electronic money and remittances, it could help the company become more relevant for emerging markets.

Earlier this month, Facebook announced it now has over 100 million users in India, the second largest national market after North America.

“Facebook wants to become a utility in the developing world, and remittances are a gateway drug to financial inclusion,” said someone familiar with Facebook’s strategy.

Users may well not want Facebook to be handling their money though, especially as users already have concerns about the social media giant using their personal data to fuel on site advertising.

Read more: Facebook buys WhatsApp – How, why and will Zuckerberg kill it?

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