„Novi is ready to come to market,” said David Marcus, chief of Facebook’s financial services division, in a blog post. „It’s regulated, and we’re confident in our operational ability to exceed the high standards of compliance that will be demanded of us.”
Facebook is already an actor in the payments industry, and has been for some time.
„We started Facebook Payments in 2009 and in the last four quarters we enabled more than $100 billion in payment volume. We have thriving person-to-person payments products at scale in the US and abroad, and we’re properly regulated to do a lot more. People and businesses in over 160 countries use our platform to make payments in 55 currencies. People can shop, make in-game purchases, donate, and purchase events across our family of apps,” David Marcus said.
The adoption of the Facebook’s digital wallet
David Marcus explains: „Given Facebook’s reach, some people think that Novi will immediately be used by hundreds of millions of people globally. As we know from our experience launching and scaling other payments experiences, this is not how it will play out. People will have to make an affirmative choice to open a Novi account, no matter how long they’ve been using Facebook. As part of creating a new account, Novi requires full customer due diligence, including identification through the uploading of a government issued ID, so onboarding new customers will take time. Novi also cannot operate in specific jurisdictions until it receives appropriate licensing and complies with local regulations and standards, so we will start in a small number of countries.”
Business model & monetization
David Marcus said: „A path to sustain the work through monetization is found. In this case, our business model is very clear. We’re a challenger in the payments industry, and we will offer free person-to-person payments domestically and internationally for people using the Novi wallet. We trust that people will prefer a service that is cost free and more convenient to ones that are significantly more expensive and not consumer-centric. Once we have a meaningful customer base, we can offer cheaper merchant payments to businesses around the world and still make a profit margin on merchant services. We can then branch out and offer a variety of other financial services in partnership with respected and well regulated partners, and expand from there.”
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Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
