Raising funds online has been available for a while now. GoFundMe is among the sites allowing for money raising. But, new competition is on the block, CNN reports. And this competitor is formidable. It is Facebook, which is not so unexpected since the company is branching out into other businesses.
Facebook just announced that it’s expanding its charitable tools to personal fundraising. It will go beyond nonprofit organizations into personal fund raising. The donations made will net Facebook 6.9 percent plus 30 cents. Meanwhile, nonprofits will continue to be charged 5 percent.
At the beginning, there will be six categories of personal fundraising. These will include education, medical, medical for pets, crisis relief, personal emergencies, and funeral expenses. Before funds can be raised, 24-hour review process will take place in order to avoid fraud. To donate, users will need to log into Facebook. The processing of payments will take from 7 to 13 days.
Meanwhile, Facebook is taking on Snapchat. It has just released features intended to mirror what Snapchat offers. These include short visual stories, disappearing messages, and camera filters. Its subsidiary, Instagram, already has these features. Facebook tried to buy Snapchat before for $3 billion, but Snapchat decided to go on its own and made a public offering of its shares. After that, its market cap reached $30 billion. So now, Facebook is competing directly against its former acquisition target.
In return, Snapchat is coming up with a new feature known as “Our Story.” It relies on collections of photos and videos related to specific events, and then makes stories out of them. There’s also a new search function allowing for searching events.
Snapchat is experiencing slowing growth, so analysts begin to worry about sustainability of its stock price. It looks that Facebook appeals to various age groups, while Snapchat is mostly used by younger generations. If Snapchat can’t grow quickly and monetize its user base more, it will follow the path of Twitter and have its share price decline substantially. Facebook is a tough competitor after all.