Facebook Credits: The Next PayPal? 12/01/10

How long before Facebook Credits (FBCs) becomes a payment option across the web? With Facebook Connect continuing to spread quickly across the web, FBCs could become the micropayment system that opens up revenue opportunities for media owners wanting to make an income with their premium content. This is about making it easy for consumers to buy what you are selling.   We should pay attention to FBCs because:

1. Virtual Currency Monetisation is a trend that is becoming an industry unto itself.  In fact, South East Asia is at the forefront:

The QQ coin is challenging the status of the renminbi [yuan] as the only legitimate currency in China.

- Public prosecutor Yang Tao, AsiaTimes Online, December 5, 2006 / The Rise of Virtual Currency

2. Facebook, through the Open Graph, is becoming ubiquitousness across the global web.

In the coming digital sphere, without a ‘gold’ standard, consumers could vote with their thumbs.

- Brett King, FinExta, November 4, 2010

One opportunity could be for retail chains to accept FBCs as a payment method in-store.  This could work via a charge card or loyalty card. Now i’m not suggesting issuing another piece of plastic to your customers, rather i’m suggesting adding functionality to what they already have.

Facebook Credits  in your eCommerce Business

The best eCommerce companies offer a frictionless checkout process.  Multiple payment options that cater to individual preferences is an essential part of this. I have made a countless number of online purchases using PayPal because the process was just so easy.  Firstly, I did not have to waste time signing up for another website and secondly, I did not have to worry about the safety of my credit card details.

For eCommerce retailers, it’s also important to consider the positive effects of using FBCs to their ranking in the increasingly important social graph, i.e It’s another point of intersection between the retailer, the consumer and Facebook.

Facebook Credits for Airlines

Imagine something along the lines of “Where in the World is Carmen Sandiego” sponsored by an airline.  The player is rewarded for completing tasks that are favorable to the brand and in return, earn Facebook Credits, or even better, points in the airlines frequent flyer program.  Gamification.org breaks down the elements of the formula that make games like Farmville so successful.   The point is that there is a tried and tested formula for creating a success social game like Farmville or Mafia Wars, and it can be adapted to the tastes of any niche audience.  We can already earn miles through non-flight activities, at the places we shop, eat and sleep, so why not somewhere that we play online ?

Source

CityVille demonstrates the in-game advertising opportunity, where you enable any player to include your brand in their city and they can open up more branches in their friends’ cities.  That’s potentially putting your brand in-front of a prospect every time they log in to play, which tends to be everyday of the week.

With Internet access at 35,000 feet coming of age, another possibility is for an airline to accept Facebook Credits as payments for upgrades or other rewards.  Casual gamers on Facebook and other virtual environments are already used to spending credits to buy virtual goods and services. If these people also like to fly, then this could be an especially good fit.  Low cost carriers could even use FBCs to collect on-board payments for entertainment, food and beverages.  Already platforms are emerging that could facilitate the process.  For example: ifeelgoods.com allows eCommerce retailers to offer Facebook Credits as a purchase incentive.

Note that the opportunity is not limited to Facebook.  It extends to any social network or virtual world operating their own virtual currency.

First there was Facebook Connect and then the LIKE button proliferated across websites. Facebook Credits is a natural next step in the integration process.  Add mobile connectivity to the equation and consider how easy it becomes for Facebook Places and Deals to to leverage FBCs for payments.