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Facebook Is Shrinking Its Payments Business

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Messenger payment discontinued in parts of Europe

Facebook (FB) is discontinuing its Messenger-based payment service in Britain and France. The company will stop providing the payment service, which allows people to send and receive money through its Messenger app in Britain and France, on June 15, according to a report from TechCrunch.

Messenger is one of Facebook’s mobile messaging apps. It’s used by more than 1.5 billion people worldwide. Facebook began providing its Messenger-based payment service in two countries in 2017. A company statement cited by TechCrunch implies that the payment service was not well received in the countries, which influenced the decision to shut it down. Last year, Snap (SNAP) shut down its Snapcash payment service after it failed to catch on.

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Payment part of Facebook’s nonadvertising business

Providing payment services is part of Facebook’s efforts to diversify outside the advertising market, which currently contributes the vast majority of its revenue. Facebook generated $165 million in revenue from its nonadvertising operations, including the provision of mobile payment services and the sale of hardware products through its Oculus unit, in the first quarter. Alphabet (GOOGL) generated $5.6 billion in revenue from its nonadvertising businesses in the first quarter. Twitter (TWTR) and Yandex (YNDX) generated revenues of $107 million and $153 million, respectively, from their nonadvertising businesses in the first quarter.

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