27 February 2017
visit dh.com

Facebook performs virtual currency about-turn; abandons Credits

20 June 2012  |  7987 views  |  2 cash

Facebook is to abandon its Credits virtual currency platform in favour of a system which allows developers to be paid in a local currency of their choosing.

The move to phase out Credits was posted on Facebook's developers blog, catching social media watchers by surprise. The mandatory introduction of Credits as a universal currency across the social network last year was viewed as a significant plank in the company's plans to extend its remit into the payments business.

In practice, however, the roll-out of Credits has slowed uptake of gaming applications, requiring users to switch in and out of multiple currency options - from US dollars, to Credits and back again to in-game currencies - and adding new layers of friction to the monetisation of developer applications. Removing Credits from the mix streamlines the payments process and provides more stable options for developer pricing, with Facebook continuing to rake in a 30% cut on all sales.

Beginning next month, developers will be able to accept local currencies for in-app payments - as well as take subscriptions - with Facebook Credits being phased out completely by the end of the year.

In its message to developers, the company says: "Since we introduced Credits in 2009, most games on Facebook have implemented their own virtual currencies, reducing the need for a platform-wide virtual currency. By supporting pricing in local currency, we hope to simplify the purchase experience, give you more flexibility, and make it easier to reach a global audience of Facebook users who want a way to pay for your apps and games in their local currency. With local pricing, you will be able to set more granular and consistent prices for non-US users and price the same item differently on a market-by-market basis."
KeywordsSOCIAL MEDIA

Comments: (2)

Masha Cilliers
Masha Cilliers - Payment Options Ltd - London | 20 June, 2012, 13:09

Indeed an interesting turnaround, which is proving that even with as much brand presence as Facebook has, cusotmers and merchants may still chose to use the payment instruments which they prefer over the ones that are being mandated on them.  I think it's a good move, meaning facebook can focus on its core strenghts and let the retailers choose what they prefer locally.  Emoney regulation and licencing might have had something to do with this decision also..

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Keith Appleyard
Keith Appleyard - available for hire - Bromley | 20 June, 2012, 19:39

Not only that but it attracted fraudsters.

One of my over-60 employees who swears she has never used Facebook in her life found that her Business Mastercard had been used 5 times in 1 month to purchase Facebook Credits in USA & Ireland.

But by the time the Card Statement arrived, Facebook must have detected them or been forewarned, because 4 of the 5 transactions had been reversed out, and when I contacted Facebook about the 5th (Facebook insists you have to have a Facebook Account in order to complain about rogue card transactions - how illogical of them) they reversed it out within 24 hours - but it must have been a right pain for them.

Be the first to give this comment the thumbs up 0 thumb ups! (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 rolls out mobile billing system

Facebook rolls out mobile billing system

07 June 2012  |  7997 views  |  1 comments
Facebook inks deal with mobile billing outfit Bango

Facebook inks deal with mobile billing outfit Bango

08 February 2012  |  6858 views  |  0 comments
Garanti gives cardholders Facebook Credits

Garanti gives cardholders Facebook Credits

03 February 2012  |  6287 views  |  0 comments
Facebook IPO: Payments biz 2011 revenues hit $557m

Facebook IPO: Payments biz 2011 revenues hit $557m

02 February 2012  |  6672 views  |  1 comments
Facebook to extend Credits currency across the Web

Facebook to extend Credits currency across the Web

25 October 2011  |  7163 views  |  1 comments
Microsoft presses RBA on virtual currencies

Microsoft presses RBA on virtual currencies

06 September 2011  |  16233 views  |  1 comments | 1 linkedin
Facebook revises virtual money terms in wake of anti-trust complaint

Facebook revises virtual money terms in wake of anti-trust complaint

07 July 2011  |  7962 views  |  0 comments
Antitrust suit filed over Facebook Credits

Antitrust suit filed over Facebook Credits

30 June 2011  |  7995 views  |  0 comments
Facebook creates payments unit

Facebook creates payments unit

22 March 2011  |  13847 views  |  0 comments
Birth of a new currency: Facebook Credits to be mandatory for on-site games

Birth of a new currency: Facebook Credits to be mandatory for on-site games

25 January 2011  |  11801 views  |  0 comments
Facebook to sell virtual currency gift cards at US retail stores

Facebook to sell virtual currency gift cards at US retail stores

01 September 2010  |  11031 views  |  0 comments
Facebook moves virtual currency offline

Facebook moves virtual currency offline

09 July 2010  |  11854 views  |  0 comments
Could Facebook wipe out the banking industry?

Could Facebook wipe out the banking industry?

15 March 2010  |  22887 views  |  5 comments
Facebook begins testing virtual payments system

Facebook begins testing virtual payments system

01 June 2009  |  12432 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit Yelloco.co.uk

Who is commenting?

A Finextra member Finextra Member Commented on: In wake of Cloudflare...
A Finextra member Finextra Member Commented on: Bank consultancy Zeb o...
A Finextra member Finextra Member Commented on: In wake of Cloudflare...

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
13333 views comments | 52 tweets | 74 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8759 views comments | 40 tweets | 34 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
7463 views comments | 7 tweets | 4 linkedin
hands typing furiouslyBlockchain Technology
7238 views 1 | 18 tweets | 7 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
7088 views comments | 19 tweets | 13 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job