Interview Question: PM for Meta Pay

You are the first PM for a new product. Why would we build this?

How would we set goals for this product?

What would be our success metrics?

1. Assumptions

Add bank info and credit card

P2P and online merchants - similar to paypal, venmo

Build for meta

Biz transaction - fraud protection

P2P - no fraud protection

2. Product Rationale

Company Mission: Build the future of human connection and the technology that makes it possible

Strengths and opp of meta

• Shopping - IG/Meta/Reels - link out
• WhatsApp / FB groups / IG - P2P
• Talking to celebs or influencers - pay them, subs, tips
• Data privacy and value
• Could expand market and usage
• Biz opp - Ads - events - concerts, movie tickets, comedy, restaurants

Product rationale: super app

Product mission: Help users complete financial transactions seamlessly in one place with P2P or merchants

3. Entities

Users

• Businesses (online, offline)
• Individuals (p2p, b2c)
• Bad actors

Financial institutions and companies

Regulators

4. Objectives

Getting people to use it for first time

Payments actually made by friends

Continue using

Make it easy to transact

Help connect more through group with financial transactions

View and engage with others transactions

Meta

• Build user base to eventually be able to go to Merchant transactions so we can collect TPV based transaction fees

5. Potential Metrics

MAUs transacting

• % of people that start it and then turn into MAU
• Active = made a successful transaction
• MAU retention of transaction
• Pros of MAUs
• Ecosytem
• Breadth of users → everyone uses
• Gets over initial hurdle of setting up
• People many not have need to send money every single week
• Gets ride of power users bias

Total # of transactions

• Group size of transactions
• Transactions per group
• pros
• Engagement per users
• cons
• Power users overweight this

$ TPV (transaction processing volume)

• $ TPV / transaction
• Transactions / MAU
• Cons of $TPV
• Anti-Money laundering
• Power user problem
• Regulation with bigger transaction

Other potential metrics

• # of users have seen product or requested from friends
• CTR % when user shown a nudge
• # of people who try to sign up → successful → add bank → add credit
• % conversion funnel
• # of people with 1 FI, 2+
• # of users that have used it once
• Max $TPV / transaction for AML and regulation
• Fraud rate
• Transaction failure rate
• # of calls to customer service

6. North Star Metric

MAUs transacting

7. Leading indicators / Secondary Success Metrics

Total # of transactions

$ TPV (transaction processing volume)

# of users have seen product or requested from friends

# of people who try to sign up

# of users that have used it once

8. Health / Guardrail Metrics

CTR % when user shown a nudge

% conversion funnel

Retention rate of users

Fraud rate

9. Tradeoff questions

Should we build or partner?

• Partner cons
• App to app experience are very clunky
• Redirect aren't great
• Reco: build

Should we target P2P first or Merchants?

• P2P pros
• Lots of p2p engagement
• Reinforce relationships
• Merchants pros
• Can charge transactions fees vs can't for P2P since Venmo and Paypal don't
• Would get much higher TPV
• reco: P2P - more aligned with Meta's mission and could more seamlessly fit into Meta's product portfolio

What would be best first use cases?

• FB groups / whatsapp - charge groups of friends
• Pro - No app does this well today so biggest problem
• Con - Might require some user education to figure out how to use if not obvious; # of use cases might be smaller so users might not sign up just do this; problem also not that big since users could just use venmo
• Direct message platform conversational - $ @
• Con - Venmo/Paypal already do this well;
• Pro - Could be pretty seamless and used by everyone so could get lots of adoption
• Patreon - tips and subs
• Pro - users wouldn't have to go on another platform to post and view content; Could create better CX
• Con - There might limited number of people that use it; could be used for illicit or risqué interactions