Reportedly, Facebook (FB - Free Report) will stop offering its peer-to-peer (P2P) Messenger payments service in France and the U.K. from Jun 15, 2019. The service, which was introduced in 2017, allowed users to easily transfer money via Messenger using their debit/credit cards.
Although Facebook did not specify the reason, we believe that underutilization of the service in Europe might be the key reason. Per a Facebook spokesperson, the company will “focus on experiences people find most useful.”
However, Facebook stated that users can continue to make “charitable donations” through its platform.
Facebook, Inc. Revenue (TTM)
Moreover, Apple’s new credit card, supported by Goldman Sachs and Mastercard, can be used at locations where Apple Pay is not accepted. This is expected to boost Apple payment services adoption rate.
Google is expanding its footprint in the market on the back of partnerships with eBay and PayPal. This is likely to increase usage of Google Pay. Also, PayPal partnered with more than 20 top-tier global financial institutions in the United States in fourth-quarter 2018 and witnessed growth in payment transaction volume. Notably, the total number of payment transactions was 2.87 billion in fourth-quarter 2018, up 28% year over year.
This is expected to put pressure on Facebook’s performance. The company carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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