Facebook Inc. (NASDAQ:FB) already offers free and convenient cash transfer services to the public. In the United States the social media giant allows users of its Messenger app to easily issue out money to each other. The company, along with a number of other social media platforms like Snapchat, have made such transactions as simple as posting a selfie or sending a text. Even the now lesser regarded Twitter Inc. extends such financial services to its user base.
Facebook and others push instant money services
In regards to the Facebook Messenger tool, users of the mobile app in the U.S. have been able to financially interact like this since last year. It is completely free of charge and widely used. Although, considering the vast usership that the platform holds in the North America, the service isn’t nearly used as much as it should.
Snapchat has a rapidly growing number of users as well. Today around 1 billion Snapchat Stories are viewed daily. The app is renowned for its engaging image sharing and editing platform. It is a rush among millennials who have been swept by the world’s swelling self-indulgence trends. According to Statista, 86 percent of Snapchat users are between the ages of 13 and 35.
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Like the cash transfer service offered by Facebook Messenger and Twitter, Snapchat too has a facility that enables people to use their money via its app. It is closely titled Snapcash. Snapcash became a buzz as the tool from Snapchat that allows you to split the bill at participating bars, clubs and restaurants. It has other conveniences too that are not unlike those offered by the likes of Facebook and Twitter. However, the appeal of such mobile services is extremely clear: Why carry cash when you can make payments via your favorite social media app.
Not as many people use services
Still, there aren’t as many people taking advantage of these conveniences. This is still in regards to the United States though, as the rest of world is especially picky about which companies can offer digital finance services, for good reasons too. But what limits people from taking advantage of instant cash transfer services like those offered on Messenger?
As convenient and abundant as digital cash services are in the U.S., online scams and e-wallet hacks are just as prevalent. It is this dark aspect of digital transacting that makes a lot of people shy away from using these services. The scare for those on the fence is the increasing number of digital scams that have flooded the net.
In America and the rest of the world, news of major hacks, scams and fraudulent transcations via online transfer tools arise far too often to ignore. The challenge for those offering such facilities is assuring users that their private details and — far more importantly — their money is safe.
“Sending cash to friends via Facebook Messenger is something I would be interested in trying when it becomes available here.” This was said by Kate Evans, a 40 year old teacher from Derbyshire. Evan reports of here interest in the service, which could be making its way to the U.K. very soon.
But for every financial convenience offered, you can rest assured that there are a parties working tirelessly at nefariously exploiting them for their own gain.
Facebook pushes instant cash harder
For instance, Facebook Inc. (NASDAQ:FB) has more and more scandals circulating its widely used WhatsApp tool. The gap that allows these activities stems from the fact that is it very difficult to govern the legitimacy of those who register on the app. This alone could very easily give rise to a number of scams if WhatsApp rolled out a cash transfer service.
“I would want to know about where my card details are store and whether i would be refunded if something went wrong,” Evan explains.
In the midst of growing finance scams reaching the news every day, Facebook says it Messanger app will soon let people make purchases at retails outlets around the world. Aware of people’s concerns, the company made a point of assuring users of the service’s priority when it comes to privacy and fraud prevention.
“Payment systems are kept in a secure location that is separate from other parts of Facebook,” the company wrote on its website. “We use secure systems that encrypt the connection between you and Facebook as well as your card information when you ask us to store it for you.”
Considering the usership of Facebook, which ranks well over a billion and rising, the company could easily convert its user base into users of its cash transfer services. The greatest barrier, though, is people’s concerns of cyber criminals and fraud.
“If there are any scandals, it would definitely make me less likely to use the servicxe myself,” admitted Evans.
However, once launched in the rest of the world, a trusted and greatly used brand like Facebook Inc. (NASDAQ:FB) could soar in popularity. This is especially true for developing regions, where the craving for fast and convenience ways to manage money are on the rise.