Forbes contributor Leo King reports in Forbes that the web-based money transfer market could be in for a large shakeup after it emerged. Facebook is planning a money transfer business in Europe, expanding its existing options beyond the U.S.
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Expert opinions are split as to whether a foray into the market by Facebook would cause a competitive danger for existing online money transfer providers such as eBayâ€™s PayPal division, Western Union WU +0.95% and Moneygram, or whether the social network would need a lot of time to establish a successful, trustworthy operation.
The social network, which already has money services licences in most US states but has not yet launched a money transfer business, is close to gaining regulatory approval in Ireland, its European base, for an online payment service â€“ according to a report in the Financial Times.
Such a business would draw on Facebookâ€™s extensive user base and existing mobile reach, but analysts are warning that success could depend on establishing a new level of user trust. It would also partner with existing technology startups to handle the transfers. The company has not commented on any potential launch, and the timing remains unclear.