Facebook to Ramp up Payments Ahead of Diem Launch

Facebook, the social media behemoth, is pushing forward with further Facebook Pay innovations ahead of the debut of its stablecoin project Diem (formerly Libra).

According to The Verge, the new Facebook Pay solution will be spread beyond Facebook’s ecosystem, which includes apps such as WhatsApp, and into third-party platforms. Shopify merchants will be “first in line to integrate the system on their sites, with others to follow,” according to the announcement.

The launch will occur in August.

After many of its big partners dropped out of the project, Facebook was forced to radically rethink its Diem plans, and the corporation itself faced considerable scrutiny from regulators and politicians throughout the world. However, the company’s response has been to expand more into the payments area.

As previously reported, the social media behemoth has established Facebook Financial, which is led by David Marcus, the company’s blockchain lead.

Initially, the company hoped to create the payment solution in order to keep users on its platform, as well as those of its affiliates Instagram, Messenger, and WhatsApp, for extended periods of time. It also hopes to prioritize the deployment of WhatsApp payment systems in India and Brazil.

In addition, the company has been exploring QR code-powered pay connections for use with Facebook Pay. These would allow American users to send and receive money from one another, as well as share Facebook Pay addresses when using apps outside the Facebook ecosystem.

Back in May, the Diem project announced a deal with the US-based crypto player and chartered bank Silvergate as part of a “strategic pivot to the US” — a significant step back from its grandiose previous objectives of effectively producing the first-ever fully global, tech giant-affiliated stablecoin.

Silvergate intends to issue Diem’s token and manage the USD reserves of the Diem group of companies. Diem has stated that it is still working on plans to build a worldwide payment network — and it appears that Facebook Pay may someday become a part of this ecosystem.

The firm also stated that a “Diem USD pilot” was in the works, though no approximate launch dates have been specified.

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