Facebook to launch money transfer service

Facebook is preparing a push into financial services, with tools for members to store and send money online, The Telegraph reported.

The social network has applied to Irish authorities for a licence that would allow it to provide remittance and electronic money services to its members across Europe, according to The Financial Times. Dublin hosts Facebook’s headquarters for Europe, the Middle East and Africa.

Facebook has reportedly held also discussions with three London-based international money transfer providers, TransferWise, Moni Technologies and Azimo, to help it build the services.

Allowing members to send remittances via their Facebook accounts could strengthen the social network in emerging markets. Migrants send hundreds of billions of dollars home to developing countries every year where large sections of the population do not have bank accounts.

Facebook would be taking on wire transfer services such as Western Union, existing electronic money providers such as PayPal and a new breed of mobile phone-based payment services, of which Vodafone’s M-Pesa is a leading example. 

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