A new department for payment strategy on Facebook

The Californian glove creates Facebook Financial, a new division that has a coherent strategy for payments across its platforms. Under the leadership of the French Stphane Kasriel, the transversal provision of the latest Facebook Pay is being developed further, not forgetting the electronic wallet project for the Novi cryptocurrency.

Facebook creates a special department for its payment services. Logically called Facebook Financial, it will bring together the “many” projects (sic) of this type within the group. The new company should undoubtedly mainly serve to develop a coherent strategy within Facebook, Messenger, WhatsApp and Instagram for the flagship product in this area: Facebook Pay. A strategy in which Novi, the “wallet” for cryptocurrencies developed by Facebook, should be inserted.

Since last year, the Mark Zuckerberg company has been stepping up the payment movement. Starting with the introduction of Facebook Pay, a classic electronic wallet (payment, purchases, currency exchange, etc.) that the social network badly lacked given the imposing Apple Pay, Google Pay and Samsung Pay versions.

A boost to Facebook Pay

Facebook Pay is reserved for the Facebook universe and can be used in all of its apps. In the tweet announcing Facebook Financial, David Marcus, VP of Novi, also mentions Whatsapp Payments, the version of Facebook Pay built into the rich messaging system of 2 billion followers. The feature has only been available in Brazil since June. And Facebook has solved pretty much all legal compliance issues in India with the same launch in the massive local market. Instagram, the most natural Facebook platform for e-commerce in the Facebook galaxy. Since July 2020, an online shop has been accessible via the search function, which is equipped with the internal payment device.

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Two former PayPal employees at the top

It is a duo of experts who will lead the new division of Facebook. It is in fact the Frenchman St├ęphane Kasriel, former head of the freelance recruiting platform Upwork, who spent a few months at PayPal, who is taking over the head. He reports to David Marcus, VP of Novi, who also chaired PayPal from 2012 to 2014. As a co-founder of the association that manages the crypto currency Libra, he also took care of Facebook messages from 2014 to 2018. Among other things, he dealt with e-commerce and payment transactions.

It’s time for Gafa to take part in a race that Apple has taken such a lead that its app recorded 5% of card payments in 2019, according to the Berstein company. A market share that is likely to double from 2025. In the last quarter of 2019, the Apple Pay division generated revenue of $ 1.7 billion (10.8 billion euros).