Social media giant Facebook is set to make a foray into the digital wallet space with the launch of Novi, its first digital wallet.
The digital wallet, which is tied to Diem's blockchain-based payment system, will be integrated into the Facebook app. According to a memo released on Wednesday, Novi is “ready to come to market.”
Chief of Facebook's financial services division David Marcus in the memo described the Novi wallet as “an interoperable digital wallet that will enable people, and eventually small businesses, to move money around domestically and internationally in a quick and affordable way.”
He further revealed that the platform would offer free person-to-person payments both domestically and internationally. Facebook is looking to implement cost-free payments, and Marcus suggests that it will begin to offer cheaper merchant payments to global businesses. He views the social media giant as underdogs in the digital assets industry and feels offering free payments will ease their venture into the industry.
According to Marcus, Novi has been granted regulatory approval in almost every US state. This is coming as a surprise considering the saga that trailed Facebook’s Diem cryptocurrency.
The plan for the wallet is to branch out and offer other financial services through partnerships with established firms in the sector.