Ripple Says Facebook Should Tap Into Blockchain for Payments: More to It or Just Wishful Thinking?
Recently we reported how a privacy-focused future is Facebook’s plan as shared by Mark Zuckerberg, the CEO of FB in its quarter first report. While Facebook manages to meet the user growth expectations, in the US and Canada, it has reached saturation. Though it is seeing growth in developing countries, they aren’t as profitable.
So, how can Facebook scale in emerging markets and shift its monetization strategy? Well, Ripple has the answer as it says,
“by tapping blockchain payments.”
This got the XRP community started as one enthusiast said, “Smells like XRP + FB.”
You just teasing now ☻ pic.twitter.com/dWDv13aKTH
— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) April 25, 2019
However, for now, there seem to be no hidden messages as Ripple’s SVP of Product, Asheesh Birla tries to answer “Can Blockchain and Privacy Save Facebook?” in his latest blog.
Birla says in order to succeed with its new business model where FB is going big with private communication the company needs to rethink the way it monetized content. As a solution he said, a third-party app ecosystem around content can be built.
Privacy & Security Are The Answers
Earlier this month, Zuckerberg unveiled his big pivot in the formal a revised vision that will be centered around private and secure communication in smaller communities as he had said,
“I believe the future of communication will increasingly shift to private, encrypted services.”
Birla says the secure messaging of Facebook could be the “next ‘super app.’” A secure messaging platform could enable third-party apps to plug their services into the chat application that would make services like blockchain-enabled payments available across the app ecosystem.
Facebook could also leverage blockchain for financial services directly in the platform to help facilitate online payments, says Birla. This according to him would work well in emerging markets that are rapidly turning from cash to digital payments.
For instance, Birla shares mobile super apps like Alipay are solving the payment problems by enabling the customer with an easy way to deposit money into their apps via bank transfers and cash.
“Facebook could also shift monetization from ads to ecommerce via blockchain-based payments and services.”
Birla now moves on to next usage of these super apps that could be used for e-commerce payments where leveraging blockchain infrastructure and crypto exchanges have an
Facebook already has a massive user base, now it can be activated to solve the last-mile payments problems by partnering with regional crypto exchanges as
“on and off ramps to the Facebook super app.”
Birla says by tapping into blockchain and crypto technology, Facebook can scale in emerging markets and take
“market share away from incumbent providers.”