2Q EARNINGS: Facebook Is a Payments Partner, Not a Competitor

FacebookPaymentsBanner650Facebook Co-Founder and CEO Mark Zuckerberg said during the company’s second-quarter earnings call Wednesday that when it comes to payments, the social network considers itself a partner to existing players, and not a competitor.

In response to a question from JPMorgan Analyst Douglas Anmuth, Zuckerberg said:

We will clearly do work in payments, to accept payments for advertising and on platform and other things that we do. But just because we will do that, it doesn’t — we still basically view ourselves as a partner to other companies in the payment space, rather than trying to compete directly for that. Our main business is advertising, and I think we’re mostly, to the extent that we do payments, it’s going to be supportive to that. I wanted to make one more point, just related to that because I think some of the questions around payments are connected to what we’re planning on doing in the other applications outside of Facebook. So things like Messenger and WhatsApp over time, when that closes, and Instagram, I really do just want to emphasize that there is a lot of work to set up the foundation for having a good business community and ecosystem, and in those, we think it’s going to be years of work before those are huge businesses for us. And I’m liking where we are now on something like Messenger, to where we were on Facebook in like 2006 or 2007, where it was primarily consumer product at that time, and where you really only communicated with friends.

Readers: Is this a wise strategy for Facebook?

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