Despite being a social media platform that aids human interaction, Facebook is currently developing a universal payment avenue that is also accessible via other social media platforms such as Instagram, WhatsApp and Messenger. The company recently unveiled a new group and appointed the co-creator of its Libra cryptocurrency project, David Marcus, to oversee the affairs of the new project. And ensure that the new group goes after payments and commerce opportunities. The group will also carry out all payments projects, including Facebook Pay — the financial feature that will run on all of its apps.
Facebook renames digital wallet to Novi
Following a recent announcement from Facebook, the digital wallet which was formerly known as Calibra is now Novi. The company disclosed on Tuesday, the reason behind the renaming and its effect on the ongoing project. It also stated that the change in the name doesn’t affect the long-term commitment and purpose; to help people access affordable financial services globally. Novi Financial is now officially the new name of the Facebook subsidiary that will aid the digital wallet development.
Meanwhile, Mr. Marcus will still be in charge of Novi. This is to ensure there are no hitches in building the digital wallet that will hold the Libra cryptocurrency. He will also join the WhatsApp payment project in countries such as India and Brazil. Facebook also employed the former chief executive of Upwork, Stephane Kasriel to assist Mr Marcus as the vice president.
Mark Zuckerberg, the CEO of Facebook, already disclosed plans to combine all the company’s messaging services. The purpose of the policy is to create harmony between all Facebook’s products and apps, including WhatsApp and Instagram. With the recent commerce projects, it is, however, wise to enforce the strategy at the company level.
In addition to the plan, the company also wants to increase the value of Facebook’s advertising and ensure that users spend more time on the company’s apps. Following last month earnings call, Mark displayed satisfaction with the commerce inside of messaging apps. He further expressed optimism with the level of growth, indicating that it will give room for more projects.
Regulations on projects
All investments to make WhatsApp a commerce-friendly zone in India and Brazil didn’t come through due to regulations in both countries. Building Libra as a functional cryptocurrency for cross-border payments requires negotiations with regulators. And such interaction can help facilitate the success of other payment projects within the company.
In conclusion, Mr Marcus pointed out the increasing need to have a specific team in financial services regulations because the success of any commercial project depends mainly on laws. In the business world, a non-regulated crypto project is very different from traditional companies that are not regulated.