Venmo, PayPal, Cash App, Western Union, and so many other international money transfer systems are kicking the bucket – well, at least in opposition to Facebook’s upcoming release of Libra in 2020.
All of the applications named above are extremely popular, especially when it comes to transferring money internationally. However, they all come with associated fees – some are smaller than others, but there are still fees.
Facebook’s Libra aims to demolish those fees so that all users can purchase items, transfer money, and process transactions entirely free.
Are they there yet?
Developing a cryptocurrency program is challenging and time-consuming – hence why they’re still working out the kinks. But Mark Zuckerberg and David Marcus, the two men behind it all at Facebook’s Libra, are doing everything in their power to win over their users – including omitting all associated fees with transactions.
Currently, they aim to make Libra the go-to payment process for everyone, internationally, for all online and offline purchases. If you want to send money to family members or friends, that’s what they aim to do, too.
They just aren’t entirely there YET. Yes, conversions will be easy. And yes, transferring different currencies will be easy in due time. For now, they can proclaim that low conversion and transaction fees are in the works, but they’re aiming to get them lower and lower each day – hence why the release date has not been announced thus far.
So, why “low to no cost” right now?
Constructing a process that has absolutely no fees is difficult. Many companies have tried doing so, such as Venmo and PayPal, but you have to keep in mind that a transaction company cannot survive without any profit margin – and this is theirs.
That’s why Facebook’s Libra is allowing transactions to happen from any smartphone, anywhere on the planet, with little to no cost. The convenience of the anywhere anytime feature is an attempt to win most of the user market over, with the rest coming in later time when the fees are entirely omitted.
Mark Zuckerberg has enough money to omit all fees, doesn’t he?
Well, yes, that’s a question that most people in the media are currently asking.
Zuckerberg does have plenty of money, and that’s probably why he’s trying to construe a way to keep the money and get rid of the fees for his future clients.
If he does accomplish his goal of no fees at all, what does that mean?
The potential customers that will transition their business from all of these other transaction markets will grow tenfold for Facebook’s Libra – and Mark Zuckerberg will continue to be one of the richest men on the planet.
We can’t get too worried, considering nothing is officially set in stone just yet.
Keep your eye on the transaction fees, and you’ll soon find out how users will or will not succumb to Facebook’s Libra. It won’t necessarily be a bad thing, but a lot of other international transaction companies will lose their target market.