Facebook Inc FB has formed a new group, led by the co-creator of the company's Libra cryptocurrency project, David Marcus, to streamline its payments operations across app offerings, Bloomberg reported Monday.
What Happened
The group, dubbed "Facebook Financial," and known internally as "F2," will look over the social media giant's ventures like its universal payments project Facebook Pay, according to Bloomberg.
Marcus will reportedly continue to lead Novi, the Mark Zuckerberg-led company’s division that is developing a digital wallet for Libra digital currencies. The social media firm has also hired Stephane Kasriel, former CEO of Upwork Inc. UPWK, as payments vice president, who will report to Marcus.
A priority for Marcus would be integrating payments into the company's subsidiary WhatsApp's platform in India and Brazil. Zuckerberg said at Facebook’s second-quarter earnings call last month that he was “quite excited” by the integration of commerce inside of messaging apps.
The financial rationalization would bind Facebook’s apps closer together, which Marcus said was “the right thing to do.”
Why It Matters
Marcus is considered to be a payments specialist, and was formerly the president of PayPal Holdings Inc PYPL, before joining the social media behemoth in 2014. The payments company was one of the first to exit Facebook’s Marcus-led Libra Association in October 2019.
Other companies that have exited the cryptocurrency venture include Visa Inc V, Mastercard Inc MA, and eBay Inc EBAY.
Price action
Facebook shares closed nearly 2% lower at $263 on Monday and fell almost 0.3% in the after-hours session.
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