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Photo: BloombergPremium
Photo: Bloomberg

Facebook allowing users to transfer money through its messenger service is further proof that boundaries between banking and tech products are fast dissolving

Facebook recently said that it will allow users to transfer money through its messenger service. This is further proof that boundaries between banking and technology products are fast dissolving. Payment providers such as PayPal and Square have already made a mark abroad. The more popular payment firms in India reportedly have more users than the entire market of active credit card users.

The marriage of technology with financial services can be seen in recent joint ventures between telecom companies and Indian banks to pitch for payments banks.

Indian banking regulators have been partial to traditional banks that they can control with reasonable ease. And they have been suspicious of other financial intermediaries because of fears that these shadow banks could threaten the stability of the financial system.

It is in this context that the list of those who get the nod to set up payments banks will be closely watched.

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