Facebook, Spotify Eye Cryptocurrency as Way to Level Financial Playing Field for Members

Facebook and Spotify announced participation in the Libra Association Tuesday, enabling users to pay for services using cryptocurrency. Libra was founded to create a “simple, global currency and financial infrastructure,” and it will enable Spotify users to directly access audio they want anytime, anywhere and “at the right price,” blogged the streaming music company. Libra offers “massive opportunity for simple, convenient, and safe payment over the internet," particularly for the 1.7 billion adults worldwide without access to mobile money, a bank account or a payment card, Spotify said, citing developing markets. A challenge for Spotify and its global users has been the lack of easily accessible payment systems, creating a barrier between creators and fans, especially in financially underserved markets, said Alex Norstrom, chief premium business officer. It's an opportunity to “better reach Spotify’s total addressable market, eliminate friction and enable payments in mass scale,” said Norstrom. Facebook, meanwhile, plans to launch a digital wallet, scheduled for 2020, that will be available in Messenger, WhatsApp and as a stand-alone app. "If you have an internet connection today, you can access all kinds of useful services for little to no cost -- whether you’re trying to keep in touch with family and friends, learn new things or even start a business,” blogged the company. For many people, even basic financial services are “out of reach,” Facebook said, saying nearly half of adults in the world don’t have an active bank account, mostly women and people in developing countries. Some 70 percent of small businesses in developing countries lack access to credit, Facebook said, and $25 billion is lost annually by migrants due to remittance fees.