27 June 2017
Visit cib.db.com

Facebook begins testing virtual payments system

01 June 2009  |  12609 views  |  1 Dot COM

Social networking site Facebook has begun testing its much-anticipated virtual currency payments system with third party application GroupCard.

Users who want to buy a GroupCard e-card through the company's app are now offered the option of clicking on a "Pay with Facebook" button.

They then pay with their credits, worth 10 cents each. The currency can be bought - with a credit card - from the Facebook gift shop.

The testing comes after Facebook updated its payments terms and conditions on Wednesday to pave the way for the platform.

Facebook will take a cut of every transaction, potentially providing it with a significant revenue stream. The site currently has around 200 million users and more than 52,000 applications in its directory.

Letting customers make purchases with credits enables merchants to sell content for small amounts without being hit by prohibitive credit card transaction fees.

The currency could also break out of Facebook, being used for micropayments on a range of Web sites such as magazines and newspapers.

Earlier this month it emerged that the Wall Street Journal is planning to introduce micropayments for access to articles on its Web site later this year.

Comments: (1)

A Finextra member
A Finextra member | 12 June, 2009, 10:13

In order for this payment system to be truly effective, Facebook must ensure that it is suitably equipped to deal with outbound as well as inbound payments. Much like the system utilised by Second Life, Facebook will need to guarantee that developers are able to access their share of the application revenues and similarly users are able to cash out their credits. Alongside this, the payments system will need to be highly sophisticated if it is to support Facebook's truly global community. While the Internet - which allowed Facebook to grow so rapidly - knows no borders, financial systems are much more border-bound. Yet, social networking sites, such as Facebook, which recognise and address the issues surrounding both inbound and outbound payments will put themselves in a strong position to finally make a profit from their endeavors by leveraging the collective power of their application developers and interactive users.

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Facebook hit by phishers again

Facebook hit by phishers again

15 May 2009  |  5823 views  |  0 comments
Entropia Universe gets real world banking licence

Entropia Universe gets real world banking licence

18 March 2009  |  13606 views  |  0 comments
Zuora introduces subscription billing for Facebook apps

Zuora introduces subscription billing for Facebook apps

03 March 2009  |  5101 views  |  0 comments
Payments start-up Noca takes aim at interchange Achilles heel

Payments start-up Noca takes aim at interchange Achilles heel

10 February 2009  |  12927 views  |  3 comments
Virtual world assets are 'soft target' for cybercriminals - ENSIA

Virtual world assets are 'soft target' for cybercriminals - ENSIA

20 November 2008  |  8976 views  |  0 comments
Second Life introduces euro currency exchange for virtual residents

Second Life introduces euro currency exchange for virtual residents

17 November 2008  |  8999 views  |  0 comments
Fraudsters hijacking Facebook accounts

Fraudsters hijacking Facebook accounts

11 November 2008  |  13921 views  |  0 comments
Pre-paid outfit Mint targets Facebook gamers

Pre-paid outfit Mint targets Facebook gamers

03 September 2008  |  5639 views  |  0 comments
Facebook users want Web 2.0 banking

Facebook users want Web 2.0 banking

04 June 2008  |  19112 views  |  0 comments
Moneybookers launches online payments application on Facebook

Moneybookers launches online payments application on Facebook

16 May 2008  |  12648 views  |  0 comments
PayPal set to roll out virtual card payments system

PayPal set to roll out virtual card payments system

19 November 2007  |  7580 views  |  0 comments
Virtual credit card launched in Second Life

Virtual credit card launched in Second Life

05 September 2007  |  12644 views  |  0 comments
Facebook users warned of ID theft risk

Facebook users warned of ID theft risk

31 August 2007  |  6349 views  |  0 comments
Entropia Universe to auction virtual banking licences

Entropia Universe to auction virtual banking licences

09 January 2007  |  9895 views  |  0 comments
Pre-paid card launched for gamers' virtual funds

Pre-paid card launched for gamers' virtual funds

25 August 2006  |  8868 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.events.sap.comvisit wavestone-advisors.co.ukvisit www.www.fisglobal.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
11161 views comments | 4 tweets | 5 linkedin
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
8799 views comments | 19 tweets | 34 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8194 views 0 | 4 tweets | 2 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8112 views comments | 9 tweets | 6 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job