Web Currencies: What Facebook Is Planning With Their Credits

 
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At the f8 Conference this week, the people at Facebook talked about their house currency, the Facebook Credit. The Credits have been in Beta phase since last August and should now be taken to the next level (“Facebook: Credits Will be the “One Currency” on All Apps”).

According to Facebook, the Credits will be implemented by over 50 application developers who have integrated the credits in over 100 applications. The majority of these are game builders. All Facebook has an overview of a selection of these.

To get users accustomed to applying the credits, Facebook will use apps now to start gifting credits to users who have never used them before, thereby encouraging their acceptance.

Furthermore, there is the new possibility to “earn” Credits (“Facebook Adding Offers to Payment Options for Credits”):

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Facebook’s interest in Facebook Credits lies naturally with their goal to establish a universal payment medium. Venturebeat quotes Facebook CEO Mark Zuckerberg:

“With credits, it becomes easier for people to buy things across apps. Rather than being locked into one app that has their credit card, they can buy in any app.

This is a canonical economics example where it makes sense to have a standard and have just one, or a few, and that ends up being better for everyone.”

The “Apps2User” is a program planned by Facebook to make it possible for App developers to transfer proprietary rewards points into Facebook Credits:

“Here’s how it would work: a rewards point system operator, like Chase, might offer their members a chance to convert their Chase points into Facebook Credits.

The motivation for Facebook is to pump more Credits into the system (and users with Credits), so that they can spend more in apps.

The motivation for potential partners would be to offer an attractive new option for users to spend their rewards points, in addition to existing options, like flights or flowers.”

Facebook will be cashing in 30% of all transactions using Facebook Credits.

Warren Knight thanks http://www.optaros.com

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