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Facebook ( FB ) is in position to make its widely popular Messenger platform an all-in-one tool that could include a partnership or a battle with Apple ( AAPL ) and its Apple Pay system. An investigation by The Information found software codes inside Facebook Messenger that could enable the messaging service to handle in-store purchases, among other features. Messenger currently allows people to send cash between users. But data from Apple iOS code examined by The Information suggest Facebook could provide users the ability to pay for goods in person. Facebook has gradually increased the features in Messenger, such as live video calling or the ability to request a ride from Uber. During Facebook’s quarterly earnings conference call in January, CEO Mark Zuckerberg said newer services would include the ability to book airline tickets, as well as new payment features. But rather than proving its own payment service, Zuckerberg suggested a partnership. “We don’t view ourselves as a payments business, that’s not the type of company that we are,” Zuckerberg said on the call. “We’ll partner with everyone who does payment. We look at the stuff that Apple is doing with Apple Pay for example as a really neat innovation in the space that takes a lot of friction out of transactions as well.” He noted that small tests began about one year ago with some e-commerce services, so that people who bought goods could follow up with customer service or purchase more goods. “We started off pretty slowly, but that’s going to be some of the basis for how we look to make Messenger a business going forward,” Zuckerberg said. “And we’re happy with the initial results.” Facebook Messenger As Payments Vehicle Unclear By entering the mobile payments fray, Facebook could either partner or compete with Apple, Android Pay by Alphabet ( GOOGL ) and other services. “There is clearly the potential for Messenger to be used as a payment mechanism,” wrote Richard Windsor, an analyst at Edison Investment Research, in a research note. “This is all well and good, but the real secret to payments is not the app but the back-end and fulfillment, and how this will work is unclear.” Facebook rivals in Asia, such as WeChat from Tencent Holdings ( TCEHY ) and Alipay from Alibaba ( BABA ), already provide the ability to pay for goods through the app platform. “Although this is virgin territory for Facebook, its Asian rivals have been on this path for quite some time,” Windsor wrote. He said Facebook will face some challenging obstacles in expanding its Messenger features to new areas, but said it’s on the right track. “We see Facebook expanding into media consumption, shopping, gaming and search which will give it over 80% coverage of the Digital Life pie and market leadership,” Windsor wrote. “However, it is one thing to cover the pie and quite another to monetize it. Assuming that Facebook gets it right, it is on the way to create a thriving ecosystem that according to Edison estimates could allow it to double its revenues over the next five years or so.” Facebook stock was up 2%, near 116, in afternoon trading in the stock market today . Facebook is trading comfortably above its 50-day moving average as it works on a new base with a 117.69 buy point. Scalper1 News
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