Facebook Inc (NASDAQ: FB) has formed a new group, led by Libra cryptocurrency co-creator David Marcus, to streamline its payment offerings across app offerings, Bloomberg reported Monday.
What happened
The group, called “Facebook Financial”, and internally known as “F2”, will see the ventures of the social media giant as well as their universal payment project Facebook Pay, according to Bloomberg.
In all likelihood, Marcus will lead Novi, the division of Mark Zuckerberg-led company that develops a digital wallet for Libra digital currency. The social media company has also hired Stephane Kasriel, former CEO of Upwork Inc. (NASDAQ: UPWK), as Vice President of Payments, who will report to Marcus.
A priority for Marcus would be the integration of payments into the WhatsApp company platform in India and Brazil. Zuckerberg said in a second-quarter Facebook call last month that he was “very excited” about the integration of commerce within messaging apps.
The financial rationalization would tie Facebook’s apps closer together, which Marcus said “was the right thing to do.”
Why it matters
Marcus is considered a payment specialist, and was once the president of PayPal Holdings Inc (NASDAQ: PYPL), before joining the social media behemoth in 2014. The payment company was one of the first to leave Facebook’s Marcus-led Libra Association in October 2019.
Other companies that have abandoned the cryptocurrency venture include Visa Inc (NYSE: V), Mastercard Inc (NYSE: MA), en eBay Inc (NASDAQ: EBAY).
Price action
Facebook shares closed nearly 2% lower at $ 263 on Monday and fell nearly 0.3% in the session after hours.
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