Facebook Inc (NASDAQ:FB) is transforming its messaging app, Messenger, into a platform, as the company moves to integrate it with all sorts of apps created by other software firms. The development comes as a surprise to many who thought messaging was just another basic feature for sharing news, but continued growth suggests there may be immense value in the business in the long run.
Messaging is becoming a key aspect of the day to day way of life of people across the globe thus the flurry of activity in developing messaging apps that come with unique capabilities. The number of users using different messaging apps grew last year by 100%. Ten of the biggest messaging apps including those made of WeChat, Viber and KakaoTalk boasted more than 3 billion users. Facebook Inc (NASDAQ:FB) owned WhatsApp leads the pack with more than 700 million users.
Facebook needs to leverage users
As the number of users continues to grow so has the number of messaging apps grown, all coming with their degree of sophistication in the sending of messages and making revenue for their parent companies. The time that users spend on this apps has made investors to start valuing them highly even though many of them have yet to generate any form of revenue.
Facebook Inc (NASDAQ:FB) has started to set the pace in the ways messaging apps can be used to generate revenue as the company moves to transform Messenger into a platform that other firms can use for developing apps and content. The giant social network intends to go even further by allowing Messenger app to become a point of integration for other services and apps allowing users to open other apps by tapping a link embedded in the flow of a message.
Facebook has social capital
Apps such as Messenger, WhatsApp and Instagram all owned by Facebook Inc (NASDAQ:FB) and at some point the company will start monetizing these apps.
Facebook Inc (NASDAQ:FB) is already eyeing the e-commerce space having already enabled the ability of users to send and receive money using Messenger. This is another frontier the company can use to generate profits by charging a commission. WeChat has long allowed users to order taxis and buy air tickets and one of the reasons why the service has continued to grow.