Facebook Pay and wanting a slice of the payment action

ByAdemola Morebise

Facebook Pay and wanting a slice of the payment action

Facebook is expected to start a peer-to-peer money transfer service within the next few months. This is an interesting development.

When Internet companies started back in the day, everyone was convinced that advertising was the key. You worked hard to create a website resource or app that people used frequently and then charge companies to display adverts within your digital properties. This is how Google actually makes most of its money today.

Facebook also makes so much money on ads, $3.59 billion in Q4, 2014. BUT, there is a little challenge, there is a limit to where you can place adverts and as such they need new ideas on how to generate more money.

Facebook, Twitter and other social messaging platforms are adding on commerce features to their services, the intent is clear: they want a slice of the action. Advertising is no longer enough, they want to take it a step further.

I am not convinced that building a business around advertising is the way to go in these modern times, we need to get more creative. By adding money transfer to their messaging app, Facebook is taking a big leap towards (finally) monetising its other messaging app: Whatsapp.

In developing countries like Nigeria and the others, a lot of factors makes it difficult to make serious money from advertising business, but if we can creatively come up with cool alternatives, gold is ready to be mined. That is why you should forget about starting a gossip/music blog and monetise it by advertising, think differently! Even companies making a killing from advertising are looking for other income streams. (This is why Google is building cars and making smart eyeglasses – they are looking for an alternative income to their advertising business).

Gold is ready to be mined, but you need to think clearly about how you can get in the middle of the action.

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Watching The World

 

About the author

Ademola Morebise administrator

Ademola Morebise is an Inventor by Night, Business consultant by Day and a Teacher in between. He writes the #TMP daily devotionals for upwardly mobile professionals.

1 Comment so far

Tools and toys – The Morebise PostPosted on5:54 am - Mar 26, 2015

[…] announced that the popular Facebook Messenger was now going to become a platform that will help you not only send money as previously announced but also potentially help you buy things, and allow other developers to build things on top of […]

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