In order to guarantee alternate revenue sources, Meta is supposedly considering a push into financing business via smaller business loans, in-app virtual currency, and social tokens.
Meta, the renamed parent company of social networking sites Facebook and Instagram, is reportedly thinking about joining the financing business by establishing a virtual currency, social tokens, and smaller business loans. After abandoning its plans to create a worldwide stablecoin, Meta is apparently changing its focus to in-app Metaverse currencies.
Meta’s plan to enter financing business
According to a report, the social media company is considering expanding into the financing business to secure an alternate revenue source to its present ad-based business model, as interest in its social networking sites continues to decline. The firm is considering numerous possibilities, including issuing low-interest small business loans, introducing a virtual currency for its Metaverse, and incorporating social tokens & creator currencies into Facebook and Instagram.
As per the reports, Meta’s potential virtual currency “Zuck Bucks” would not be a blockchain-based cryptocurrency but rather be an in-app currency issued and controlled by the company.
Why is Meta considering financing business?
Meta’s current attempt to seek alternative income sources derives from declining year-over-year user interest in its social network platforms, as well as an expected $10 billion impact on its 2022 revenues as a result of Apple’s privacy policy changes. Apple’s move to require third-party applications such as Facebook and Instagram to obtain permission before monitoring users across multiple websites and platforms has drastically reduced the accuracy of their adverts, badly impacting Meta’s bottom line.
Meta appears to be diversifying its largely ad-revenue driven business strategy by offering both traditional and digital banking solutions.
