Facebook to launch e-money services according to reports

Facebook is reportedly planning to give financial services to its users in the form of electronic money and remittances.

Facebook is reportedly planning to give financial services to its users in the form of electronic money and remittances.

The social network is seeking regulatory approval from Ireland’s central bank to provide a service that would allow its users to store money on Facebook and use it to pay and exchange money with others.

This ‘e-money’ service will mean Facebook will be able to issue units of stored monetary value that represent a claim against the company.

The ‘e-money’ can then be used throughout Europe in a process known as "passporting".

Facebook is reported to have held talks regarding potential partnerships with three London start-ups offering international money transfer services online and via mobile.

The rumoured start-ups include TransferWise, Moni Technologies and Azimo.

A Facebook spokesperson said the company did not comment on "rumour and speculation".

According to legal experts, Facebook are required to hold capital of €350,000 ($484,042) and segregate funds equivalent to the amount of money it has issued in order to obtain e-money authorisation in Ireland.

In 2013, the company facilitated $2.1bn worth of transactions, largely originating from games, according to documents filed with the SEC.

 

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