While Waiting for Libra to Launch Facebook Unveils New Payment Tool

November 13, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Yesterday on November 12, Facebook announced the launch of its new Facebook Pay service, which will allow users of the social network and its Messenger, Instagram and WhatsApp applications to make payments.

“People already use payments across our apps to shop, donate to causes and send money to each other. Facebook Pay will make these transactions easier while continuing to ensure your payment information is secure and protected,” the company writes.

Facebook emphasizes that the new tool is created on the existing financial infrastructure and cooperation. Thus, it opposes the stablecoin Libra, the announcement of which caused massive discontent among regulators around the world.

The launch of Facebook Pay in Messenger and Facebook apps for US users, including “fundraisers, in-game purchases, event tickets, person-to-person payments on Messenger and purchases from select Pages and businesses on Facebook Marketplace,” will begin rolling out this week.

Among the misfortunes that befell Libra at the end of October, France, Germany, Italy, Spain and the Netherlands supposedly agreed to prevent Libra from spreading and called for other EU states to participate in their coalition.

Lawyer Jake Chervinsky believes Facebook Pay announcement by the company recognizing the hopelessness of the Libra idea in the current environment. At the same time, he notes that the projects have different fields of application: Facebook Pay is focused on expanding the capabilities of American users when working with social network services, while Libra is being promoted as a means of distributing financial services around the world.

“I just think this undermines Facebook’s argument that Libra will encourage business on their platform by facilitating payments. If US consumers & merchants have Facebook Pay, then why bother with Libra?” he adds.

Author: Marko Vidrih