CEO Mark Zuckerberg is set to breathe rarefied air when Facebook gets Irish regulatory approval to become a “payment and remittance processor,” i.e., a bank.
The Central Bank of Ireland — where Facebook’s non-US businesses are headquartered — is ready to OK the site becoming an electronic money institution, which will allow users to send money to each other or to online retailers.
There’s no word how broad the rollout will be; Facebook declined to comment on the matter.
Zuckerberg’s first foray into online payments was Facebook Credits, a now-defunct payment system the company shuttered in 2012 after deciding it was an unmitigated flop. But while Facebook users could spend credits only on apps and virtual items, this new system will let users send cash to one another.
This allows Facebook to become more than a social-media site for much of the developing world, which has limited access to traditional banking.
Facebook will also be able to develop richer profiles on its users, which it can sell to marketers looking for brand-buying data.
Zuckerberg almost certainly will look to get a piece of the action for online purchases, just as Facebook takes a 10 percent cut on all apps bought through the site.
The banking move — if approved for all of Europe — along with the $19 billion Facebook acquisition of WhatsApp, gives Zuckerberg a strong toehold overseas.