“FaaH” — Facebook as a Hub

So I was signing up for Munchery the other day. Very convenient — I linked it with my FB account without hesitation. Then it made me thinking: what about all the other apps that I used FB to sign up — what do they do besides obtaining my social network info and sometimes try to post and do marketing on my behalf? Or rather — what could they do?

Startups like Munchery that are giving out credits to acquire customers. If you invite a friend (via FB, T, or email), you and your friend will each get $20 credits once your friend places an order. This sounds great because $20 is more than enough to cover one meal on Munchery. But what if I don’t need the $20 right away and would rather use it on something else (like Uber or Leap)? It would be awesome if I can transfer the credit, via the FB hub, to another app in the network.

Even more, FB itself can offer ClassPass-like credits — once you buy $100 FB credits, you can use it anywhere on its network, be it a game, or an app that it connects to. And the credits can be fully transferable within the network — now we literally have a new currency (although it may only be created/printed once you purchase with fiat or cryptocurrency).

FB gets more apps to join its network AND more users using the network and transacting money. The apps get more traffic (just like the gyms that sign up for ClassPass). Users like me get more flexibility and convenience. It’s a win-win-win situation.

P.S. You might also imagine a similar “TaaH” — Twitter as a Hub, but Twitter is not a closed social network so the network effect is not comparable to FaaH. Although apps could use TaaH as a marketing tool to complement the FaaH. Google could build a similar network upon the gmail user population, or a GaaH because most people use Gmail to open Facebook accounts anyways.

Global Fintech Founder & Investor | ex-Adyen, ex-Franklin Templeton

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