Facebook Released a New Payment Platform: Will Consumers Trust It?
Despite facing a series of challenges of late -- especially those relating to security and privacy concerns on its platform -- Facebook (NASDAQ: FB) doesn't seem to be losing steam. During the third quarter, the company's daily and monthly active users grew by 9% and 8%, respectively, and both its revenue and net income came in higher than analyst estimates. Facebook growing its user engagement while still dealing with a damaged public image is the best vote of confidence the company could have asked for.
However, Facebook's latest venture -- Facebook Pay -- will be yet another test of just how much trust users put in the social media giant.
Facebook deciding to launch a payment platform is a logical next step from a series of moves the company has made recently. Most notably, Facebook's subsidiary Instagram launched in-app checkouts to allow its users the convenience to purchase items directly from the app (as opposed to being redirected to some third-party website). In order to facilitate similar financial transactions on its other platforms, Facebook came up with Facebook Pay, a payment-processing option for users that will eventually roll out across its Messenger app, Instagram, and WhatsApp.
Source Fool.com
