Facebook secures e-money license in Europe

Facebook users in Spain will soon be able to send and receive money on the social network. Although the company has yet to make an official announcement, it has taken the necessary steps to ensure the launch of its payment services in Europe.

Since 30 December 2016, Facebook is part of the Bank of Spain’s register of e-money entities through Facebook Payments International Limited, the Dublin-based subsidiary which was granted an e-payments licence at the beginning of December.

The authorisation from the Central Bank of Ireland enables the launch of Facebook Messenger’s peer-to-peer payments in Europe after rolling out the service in 2015 in the US.

The licence granted applies to payment services including credit transfer, payment transactions and money remittance.

A spokesperson for the company headed by Mark Zuckenberg told Europa Press that the licence will also enable the development of financial products such as charitable donations.

It remains unclear when the services will be available in Europe on the social network. In the US, Facebook has already begun to explore different ways to take advantage of its e-payments licence.

One of them, still in trial mode, allows a number of Facebook users to sell products and services directly through Messenger, the company’s instant messaging application.

Facebook announced in March 2015 that a new feature would offer users the possibility to send and receive money for free.

One of the requirements to access the service in the US is to upload a Visa or MasterCard debit card to their Messenger app, however the tool can be only used by individuals, not companies.

Outside of Europe and the US, instant messaging applications with e-payments capabilities have existed for a while, allowing shoppers to directly interact with their favourite retailers. One of these companies is China’s WeChat, which brings together in a single platform a variety of features including message and video content, as well as e-commerce functions such as product reservations, purchases and electronic payments.

The rise of ecommerce is changing consumer habits drastically, and fashion brands have placed themselves at the forefront of the transformation investing heavily in omnichannel.

It’s becoming increasingly crucial for brands to explore the relevance of their physical stores and implement innovative strategies to drive sales, such as Burberry’s see-now-buy-now concept, which allows shoppers to buy items from a new collection straight off the catwalk.

One of fashion’s most popular social media platforms is Instagram, which is owned by Facebook. The online mobile photo-sharing network launched last year special profiles for companies, where retailers and small businesses can interact directly with their followers.

With the new e-money licence, Facebook takes a step closer towards become the leading social network of the West.

Facebook secures e-money license in Europe

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