Facebook needs payments – but where are they?

first_imgFor Facebook, it would seem that ramping up its Buy button and Messenger Payments can’t come soon enough. As the social network’s user base continues to shift to mobile and expand into the rest of the world, advertising is no longer keeping pace with revenue expectations — and the logical answer would be payments.But as in previous earnings calls, Facebook executives didn’t say much directly about their payments projects that are slowly making their way into regular use.And they do appear to be needed. In Q1, Facebook’s ad revenue rose to $3.32 billion, up 42 percent from a year ago (and it reportedly would have been up 55 percent, except for the soaring dollar and the staggering euro). But that growth rate dropped from Q4, which showed a 53 percent increase. A breathtaking 73 percent of advertising revenue was from mobile ads — even more impressive because mobile advertising rates are typically lower than for desktop Web users.But payments and other fees dropped to $226 million, down 5 percent from a year ago. (In Q4, it was up 7 percent year-over-year.) That was largely due to a decline in games played on PCs, said Facebook CFO Dave Wehner. continue reading » 9SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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