Makes almost no money from messaging services. Facebook inc.’s plan for a new cryptocurrency has the potential to change entire industries. A more likely outcome is that the technology will transform the social media giant’s own business. While facebook gets most of its revenue from advertising. Ceo mark zuckerberg says the future is private messaging. It’s a tough space for data-hungry digital ads. So wall street has wondered how the company will make money from this new future. Libra. The cryptocurrency that facebook announced last week. Presents a tantalizing answer.
“libra could introduce a significant China phone number new product and revenue stream for facebook for years to come.” citigroup analyst mark may wrote in a recent research note titled “facebook’s path to printing even more money.” print even more money). Bitcoin blue2 1024×640 facebook has more than 1.5 billion users on whatsapp and messenger. But makes almost no money from messaging services. Last week. When facebook revealed its plans for libra. The company also said it would soon put new digital wallets inside these apps so users can easily use cryptocurrency to send money to friends and businesses anywhere in the world. If the plan works.
Software Features China Phone Number
Whatsapp and messenger will become new payment and commerce hubs taking small but profitable slices of billions of transactions. According to may and other analysts. “this move is a strong indicator of facebook’s intention to become a transactional platform (via messenger and whatsapp). Expanding far beyond its massive ad business.” suntrust robinson humphrey analyst youssef squali wrote. Wechat facebook has a rocky payment record. And libra has been shunned by some crypto purists. But china’s wechat and qq show what’s possible when messaging apps incorporate payments and other services. Wechat and qq make money by facilitating payments between users and merchants.
Distributing mobile games. And selling digital products such as stickers and avatars. The services have made owner tencent holdings ltd. The most valuable listed company in china. Facebook’s intent could facilitate similar offerings across payments. Purchases. Apps and games. While taking advantage of the company’s huge user base in asia. Where it has nearly four times as many monthly active users as in north america. According to rbc analyst mark mahaney. Capitalmarkets. Libra “may turn out to be one of the most important initiatives in the company’s history to unlock new engagement and revenue streams.” he wrote in a recent note. For now. Facebook and its new subsidiary calibra.
It Has Its Development China Phone Number
Which is creating the digital wallets. Are framing the new currency as a way for people to send money to each other across borders. David marcus. Who heads facebook’s libra project. Said the company doesn’t plan to charge a fee when people send money to friends. And is likely to charge “small transaction fees” for payments to businesses. That could be the first step towards something more lucrative. Before facebook. Marcus was chairman of paypal holdings inc.. The largest independent digital payments business in the us. Paypal facilitates one-to-one payments. But it has also become a common way to pay for online purchases. “you don’t usually make money on [peer-to-peer] payments.” said harshita rawat.