Photo: Chesnot/Getty Images
Why Facebook is still playing catch-up in payments

Hello and welcome to Protocol | Fintech! This Tuesday: Facebook plays catch-up, Stripe checks IDs and Elon Musk makes up with bitcoiners.
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Here's Facebook's problem in payments: No one raps about Facebook Pay.
Hundreds of rap songs have mentioned Square's Cash App, and the pandemic only solidified Venmo's place in popular culture.
So it's understandable that Facebook is looking to catch up with its rivals in mobile payments. But the introduction of new QR code and direct-link features only highlights how far behind Facebook has fallen.
Facebook thought payment services were about friends. But it turned out paying strangers — rappers, entertainers, people in need — was the killer app.
Better late than never. The QR code feature may not be a full-fledged Venmo killer, but it speaks to larger ambitions Facebook has in payments.
The person to watch here is David Marcus. The former leader of PayPal joined Facebook to run Messenger in 2014.
The crucial question for Facebook is trust. People still upload their party photos. But will they hand over financial details? The same trust questions that dogged Diem will likely haunt Facebook's expansion into payments.
But consumers love convenience, and if it means being able to buy that cute hat on Instagram a little faster, Facebook Pay may still score. That's why little details like QR codes and payment links matter — as does letting go of Facebook blue-app dogma, like making everything run through your friends list.
— Tomio Geron
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Stripe now has an ID verification tool. The payments software company introduced Stripe Identity, which it says will help businesses battle fraud and assist with regulatory compliance by verifying customer identities.
What fintech trend are you most excited about?
I'm most excited about all of the innovation that's happening across proptech right now, specifically when it comes to improving real estate transactions and the home-buying process. Buying or refinancing a home is one of life's biggest financial decisions, but the process has traditionally been horrible: complicated, lengthy and overly expensive.
What fintech trend is most troubling for you?
I don't love mobile applications that gamify investing and encourage people to gamble away their life's savings. Gambling disguised as investing has the power to do incredible damage when people invest money that they can't afford to lose, and then do it again and again to fuel a casino-like rush.
What's been your biggest professional blunder, and how did it help you?
At past companies, there were times when I've fallen into the trap of believing that success is autobiographical, and found myself surrounded by others who thought too similarly to me. Over the years, I've come to realize how important it is to build a team with people who have diverse experiences, opinions and perspectives. It makes me a better leader and Doma a better company.
What fintech company — besides your own — have you been most impressed with this past year?
I'm very impressed with Hippo, and how the company is revolutionizing home insurance — something that's known for being extremely complicated, yet is clearly very important. Similarly to what we are doing at Doma, Hippo is leveraging AI and data-enabled technology to make something easier for homeowners, and I'm excited to see them continue to grow as we all work toward improving the industry as a whole.
Fundrise is a low-cost, tech-driven way to diversify your portfolio with private market real estate, an investment that has historically driven superior income streams and stability, without sacrificing return potential. They make investing in real estate simpler, smarter, and more effective than ever. Sign up for free today.
That's the projected total spending on "buy now, pay later" services by 2026, according to Juniper Research, which expects BNPL payments to reach $266 billion this year.
Thanks for reading — see you Friday!
Photo by Chesnot/Getty Images.
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