Facebook Messenger debuts ‘split payments’ feature

Launched yesterday, the feature lets users split bills evenly or in customized amounts through Facebook Pay. Facebook had publicly tested the feature for two months.

Why should we care?
In the wake of Meta’s catastrophic market cap crash, the decision to double down on payments-related features highlights the company’s urgent search for new revenue streams. It’s jettisoned crypto-related strategies (namely its now-defunct Diem project) in favor of more “traditional” fintech à la Venmo or Cash App. Introducing a ‘split payments’ feature is clearly an effort to woo younger, fintech-fluent demographics toward its platform; Gen Z is much more likely to divvy up the cost of a pizza than it is to yearn for wealthtech-adjacent features. The existing array of Meta-owned social networks also facilitates peer-to-peer payments through profile integration and user verification. This both smoothens the onboarding process—a significant advantage for Facebook over Venmo, for example—and can help Facebook retain younger users. Meta saw its base shrink for the first time ever in Q4 2021; through payments, the tech giant may hope to make itself more useful to users who see Facebook as an antiquated platform.