The Facebook and Money transfer

The migrant workers all over the world have to seek the services of money-transfer firms in regular

intervals to send money home. The fees of such money transfer are exorbitant and a chunk of the hard earned money goes to those firms which do the service.

On thinking about it, it may appear to be a welcome move on the part of the Facebook to start the money transfer business between account holders especially in a developing country like India. There are millions of migrant workers from India in various countries and they along with their spouses have Facebook accounts already. They must be willing and ready if with a few clicks here and there they can transfer money to the home along with their love and regards.

Now the cheapest method for a migrant worker to transfer money home is through the banks. But a majority of workers do not prefer the Bank- transfer as it is not only cumbersome but also practically difficult  to find time for the workers to go to Bank, stand in the queue, fill up forms and arrange the transfer. They, therefore, choose the informal route of Hawala payment for which the fee is almost four to five percent of the money transferred. The money transfer via the Indian Postal service is also both cumbersome and as much expensive

The Facebook platform is familiar and a meeting place for friends and relatives at the leisure time. If the Facebook makes the money transfer possible for a nominal fee the account holders would be happy to do business despite its shortcomings. But the scheme is in the infant stage in all places except in the U S. The Facebook has applied for permission at the Ireland office of the European Union to start the scheme at Europe and has not got the reply. Similarly it is in such an uncertain stage in  other parts of the world also.

In addition to the question of sanction from respective Governments it is also a big task for the company to start global business and carry it out without a hitch. The question is doing the money transfer safely and easily on a global basis  There is always the possibility of criminals roaming through the Facebook accounts for pilfering money.

Then it is also not possible for the Facebook to physically carry the money to the account holder’s home like the messages, even if the sender can avoid a journey to the Bank the recipient has invariably to reach the Bank to get the cash. In other words the Facebook cannot do business as the Hawala people do it who do not take a rest until the cash is handed over to the addressee in person wherever he is.

 The Facebook knows the enormity of the task and the world premiere of the scheme is waiting just on account of it.