Mandatory payment system implemented with Facebook Credits

Facebook Credits are a virtual currency usable on and through Facebook. Facebook credits are purchased. They could be bought like any digital product. The company turns “real” money into Credits. Any developer who wishes to create a game or program on Facebook can use Facebook Credits. As of July 1, 2011, the credits become mandatory. Individuals will now only be taking out a payday cash loan for one form of credits with Facebook rather than multiple forms with all the uses there are currently on Facebook.

The system of Facebook Credits

In games and programs in Facebook, Facebook Credits is a way to pay for them. Everything from Farmville plants to Castle Wars medallions could be purchased using Facebook Credits. Currently, the exchange rate is 10-to-1 – 10 Facebook credits for each United States dollar. There are different ways you are able to pay for Facebook credits. You can use mobile payments systems, charge cards or even PayPal. You are able to get Facebook Credits no matter where you are from. You will find several currency standards that it’s done in.

Requiring Facebook credits

There was an announcement from Facebook about these Facebook Credits. Starting July 1, all games could be required to use them. Credits will be the only way the buy in-game currency. Nevertheless, game designers can create this in-game currency still. There is a claim from Facebook that this will help things a lot. The barrier that payment systems have could be lifted with this transaction program supposedly. Of all Facebook Credit transactions, Facebook will get 30 percent. In 2010, just one developer – Zynga – paid $30 million to Facebook to fulfill this 30 percent tax. The game developer will get 70 percent of the Facebook Credits.

How micropayments will start to impact the future

Facebook Credits, much like other online transaction systems, are based on the idea of "micropayments" – small payments and purchases, generally less than $5. Facebook Credits means the business stands to make millions, if not billions of dollars. Facebook has also stated that it hopes to expand the Credits program into a full-blown payment system, much like PayPal or the new Starbucks Card program. These secondary currency systems, however, are prone to failure. Users ended up losing millions of dollars in 2008 when the game Second Life had its own banking crisis. Will Facebook Credits face the exact same fate? Time could be the only thing to tell this.

Information from

E Money

emoney.allthingsd.com/20110124/facebook-credits-will-be-mandatory-payment-platform-starting-july-1/?mod=twitter&utm_source=twitterfeed&utm_medium=twitter

TechCrunch

techcrunch.com/2011/01/24/facebook-to-make-facebook-credits-mandatory-for-game-developers/