More access to more clients
Since it will give access to a larger spectrum of clients, the idea behind Libra is to build a financial ecosystem that will ultimately empower more people.
For both major tech companies as well as financial institutions that are backing this project, this will mean that they will earn access to more clients and for those who are struggling to access capital, it will provide them with a new lifeline.
Backed by NGOs
A good number of NGOs have also been involved in the Libra Association including Mercy Corps and Women’s World Banking. In order to become a “Social Impact Partner” contributing NGOs must have a five-year track record of poverty lessening work, including digital financial inclusion and an operating budget of greater than $50 million.
Although Calibra will only target basic fund transfers at first, the main aim is to boost its services to let clients pay pills and to purchase goods or services eventually.
Rebuilding the New PayPal
Facebook saw both a golden opportunity as well as a risk to current transaction processes. Not only, will it dislocate the way transactions are administered by removing transaction fees most common with credit cards, but it will also heavily influence Facebook’s ad business model.
Since there are 1,7 billion people who don’t currently own a bank account and might opt for a financial services alternative, Facebook wants to transform Libra into a bigger and better version of PayPal. With fewer fees and bigger access to a wider range of clients, it also aims to become more resourceful and long-lasting.
Who can use Libra?
Anyone who has access to Libra’s iOS or Android mobile app, as well as Facebook’s Messenger and Whatsapp, will have access to it.
How will Libra work?
Since Libra hasn’t been released and details are only slowly emerging, we won’t know in full until it’s actually launched. Calibra promises that it will be as easy to send money as sending a message or a photo.
You will be able to send, add or withdraw money in a few clicks all by using the appropriate mobile apps, Messenger or Whatsapp.