Tag Archives: Paypal

Facebook Credits poised for a massive 2011.

The following are articles that discuss the explosive growth of Facebook Credits virtual currency.

SFGate discusses the growing momentum of Facebook’s virtual currency, “Facebook Credits”. From the article:

” Facebook members use a regular credit card, PayPal account or mobile phone account to buy a certain value of Facebook Credits, starting with 15 credits for $1.50. Facebook Credits accepts payments using 15 currencies, including dollars, euros and yen.”

Inside Social Games has an excellent article about Facebook making a serious push to get social game players to purchase Facebook Credits virtual currency in 2011. From the article:

” Facebook, then, seems to have prioritized moving all direct payments over to Credits before messing with the variety of alternative payment options. That progression allows it to get Credits in front of the bulk of paying users while giving developers more flexibility around the switch. “

The Independent offers additional prespective on Facebook Credits.

” But some analysts believe the growth of this could become far wider if Facebook created more of its own games. Some predict that eventually Facebook credits could become currency to buy actual real-world products via the Facebook network. ”

SFGate discusses Facebook’s recent 50 Billion valuation within the context of Facebook Credits “tax”.

” Unlike Google or Microsoft, Facebook won’t have to figure out how to diversify its revenue. It just has to sit back and wait for the next Zynga or Groupon, design a way to tax that business (the way it suddenly sprouted Facebook Credits when Zynga got huge), and profit from the tax. ”

AllFacebook discusses forecast that project Facebook Credits eventually(potentially) generating $8 Billion a year.

” That’s exactly what Albert Babayev over at Seeking Alpha has concluded, after developing a model based on the future projections of Facebook revenue, with him expecting Facebook Credits to eventually become an $8 billion a year business. :

Reuters discusses TapJoy’s alternative ads for virtual currency model and the potential impact of Facebook Credits.

” Facebook plans to migrate its entire system over to Facebook Credits, an official virtual currency for all the applications running on the social network. But that hasn’t happened just yet, leading Tapjoy to bring in its best month of virtual currency transactions yet in December, Jessup said. Tapjoy is already prepared for the upcoming switch over to Facebook Credits, and is used on a number of other social networking sites like MySpace and Yahoo. “

 

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The Fight against Facebook Credits

Wired reports that the battle for leadership in the virtual currency market is turning one sided, with Google, Paypal and Apple scrambling to catch behemouth Facebook.

” Because they are accepted by a number of companies, Facebook Credits are are more liquid than those credits within iOS and Android apps can be.”

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Filed under Facebook, Facebook Credits, Google, Paypal, social games, virtual currency, virtual goods, Zynga

Marvelous Team Up: Pay Pal meets Facebook

Facebook has struck a deal with Pay Pal to make it easier to purchase Facebook’s virtual currency called “Credits”. The floodgates for the virtual goods market have been opened. More developers of social games, virtual gifts, advertisers, etc will be able to more easily monetize on the Facebook platform.  Articles and analysis by:

BusinessWeek

Wall Street Journal

Reuters

Economic Times

PC Magazine

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The Race to Monetize on Facebook

Numerous companies ranging from Kwedit to Visa are racing to offer consumers the best virtual currency solution for playing social games and buying virtual goods on Facebook. Articles and analysis by:

BusinessWeek

CBC News

Blogging Stocks

TechCrunch analyzes Kwedit for social games

Geek With Laptop breaks down Kwedit

VentureBeat – Even more Kwedit analysis

PR NewsWire (Kwedit Press Release)

GamesBeat discusses new reports by Inside Network concerning social games and digital goods on social networks including Facebook. From the article:

” The report details how social game developers organize their teams and publish on a frequent update schedule, with numerous iterations aimed at getting more users to play and share the games. It also describes the mechanics and designs of social games and what makes them unique, as well as monetization trends.”

ReadWriteWeb discusses Facebook’s progression into a massive advertising platform

Mashable discusses three potential massive revenue streams for Facebook

Reuters discusses Facebook achieving “Technological Lock – In” status.

UPDATE: 03/02/2010 ReadWriteWeb discusses report about estimates of Facebook earning 1 Billion in 2010.

UPDATE: 03/06/2010 Silicon Republic has an article where Colm Long from Facebook says that virtual currency monetization on Facebook can eventually eclipse revenue from ads on the the network.

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