Facebook insiders have revealed that the Silicon Valley giant has launched an ‘internal working group’ titled F2 with the aim of developing and accelerating Fintech opportunities across its technology platforms.
F2 will be led by David Marcus, the lead engineer of ‘Novi’, Facebook’s recently beta launched cryptocurrency platform which will maintain and distribute the transactions for Facebook’s ‘Libra’ digital currency.
Despite announcing the launch of its ‘Libra Coin project’ last summer, Facebook’s cryptocurrency developments have been frustrated, as US and EU financial regulators detailed a raft of unanswered concerns as to how Facebook social media platforms could safely monitor financial transactions for their combined +2 billion active daily users.
Countering multiple regulatory concerns, tech observers detailed that Facebook may radically alter its crypto strategy to focus on aligning payment structures across its portfolio of flagship products Facebook, Instagram and Whatsapp.
Furthermore, Facebook’s executive leadership team is reported to want to overhaul the firm’s payment capacities as a means of boosting engagement with new Gen-Z consumers and to bolster the firm’s services for developing markets such as India and Brazil.
Mirroring messenger app rival WeChat’s (TenCent Holdings) dominance of the Asian payments market, Facebook is reported to want to replicate its competitor strategy for Brazil and India, boosting Whatsapp capabilities with instant payment functionalities.
Facebook has invested significantly in Whatsapp to transform the app into an e-commerce gateway for developing markets, but much like its Libra Project regulation has stalled any progress.
Meanwhile, Facebook’s growth strategy has come under regulatory scrutiny by Congress, who are currently reviewing Anti-Trust laws with regards to ‘Big Tech’s’ dominance of business competition and market conditions.
Facing political scrutiny alongside its counterparts of Amazon, Google, Microsoft and Apple, Facebook is expected to be precautious in how it proceeds to engage and grow its assets within a burgeoning Fintech marketplace.
In their review of Big Tech, several US senators have probed incumbents on whether their M&A strategies can be defined as ‘defensive moves’ to impede any market competition from arising.
Responding to press speculation on its upcoming Fintech projects, Facebook replied that it was ‘rationalising a strategy internally with regards to all things payments’.