In June 2011, Facebook released Credits, a new payment system that was akin to the former virtual currency found on Xbox 360. However, on Thursday it was announced that the social media platform would be retiring its current system in favor of localized currency.
Facebook Credits could be purchased at $0.10 each and then used for on-site games, special offers, and virtual presents. Facebook took 30% of each credit (much like how Apple and Google earn income from iOS and Android apps).
The idea was novel since Facebook Credits could be used across platforms for different games.
However, due to the growth of Facebook on an international scale, the Credits to real currency conversion proved to be troublesome. While $0.10 in American currency per Credit was easy to convert, currency conversion in other countries was not as efficient.
The switch to real, local currency has its pros and cons. For instance, users no longer must jump through the extra hoop to purchase something on-site. On the other hand, this will cause a bit more work for Facebook app developers.
JackThreads, an online clothing company, sees the switch to local currency as a positive move. Last month, users were able to “pay through Facebook,” allowing the social media site to authenticate payments. Users with their card information or PayPal information were able to quickly process payment just by using their Facebook login.
Do you foresee the transition from Credits to real currency as a good thing? Will you trust Facebook as a way to pay for online goods and services?