No surprise that Facebook is launching Facecoin, as the West Coast tech giant looks to attack the rich powerful East Coast financial services market.Barclays has based their analysis on Google who earn $6 per user on Google play, and with 3 billion Facebook users, Barclays thinks that $19 Billion of additional revenue is achievable.
Facebook is launching later this year after which no doubt they will roll out Facecoin in other jurisdictions very quickly, and with it, global reach to customers that could be anywhere.
Facebook generated 89% of its $40Billion revenue in 2017 from digital advertising. It has over 6 million business users, so it may be it will be corporate accounts that Facecoin will be targeting, cutting out the banks especially for any overseas payments from their clients.
If Facebook becomes a major provider of payments, as it is in messaging and social media, then it is likely to attract even more pressure for mega tech companies to be broken up!
In this lengthy post last week Facebook’s CEO Mark Zuckerberg didn’t mention Cryptocurrencies but did talk about payments and encryption on a number of occasions.
This announcement will not have been lost on other FANGs members – Apple, Netflix, and Google let alone Amazon, Alibaba, Tencent so watch this space for more branded digital assets dressed up as payment methods for their loyal customers…
