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Facebook launches Payments, after Deals and Credits

Posted by in Social Media Marketing

Facebook has been rolling out different facets of its own e-commerce system, starting with Credits just over a year ago. Facebook Credits is the system that enables users to transfer real world cash, into credits that will allow them to ‘purchase’ items for online games played on Facebook. Beyond generating another revenue stream, the major benefit of Credits to Facebook is that it gathers data in terms of user spending (as opposed to losing this information when games offered their own payment systems). The biggest push was seen when Zygna, the developers of the most popular Facebook game Farmville, decided to go with Facebook Credits over its own payment system.

The rationale from Mr. Facebook Mark Zuckerberg himself was that having a universal currency would provide other start-ups a level playing field, in that users could spend their credits anywhere, and not be restricted to simply the game that they originally purchased for. Not to mention that Facebook collects a 30% fee.

Next in line we have Facebook Deals. Facebook Deals started in November 2010, and is aimed at targeting users who want access to special deals in their nearby vicinity. The deals are provided by merchants registered with Facebook. How does this benefit Facebook? We all know that group discount is on the rise and is getting popular. Right now a lot of group discounts deals are being promoted through social networking sites such as Facebook – what would the impact be for Facebook if they were to take a cut of this growing market? Another revenue stream that’s for sure…

Facebook Deals
Facebook Deals

Not long after the introduction of Deals, Facebook Payments Inc. was created as a wholly owned subsidiary whose plans are described as ‘organized for the purpose of transacting any or all lawful business’ as well as to help ‘handle payments to developers related to our Facebook Credits program.’

So what is Facebook doing with all these different payment systems and structures? It is hard to tell at this stage because it is still relatively new. Especially as Facebook Deals and Payments aren’t available here in Australia yet. When we get more information, then we will definitely share it with you.

How will this affect your business? Did you know about Credits and Deals? Would you be interested in having Deals for your business as it rolls out to Australia and do you see value in it? Let us know what you think Facebook’s plans are below in our comments.

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's role as a Campaign Manager is to coordinate multi channel online marketing campaigns and strategies to increase traffic, enquiries, sales or revenue, depending on what the campaign goals and objectives are. Kevin has a passion for mobile and technology which has helped him become a leader in mobile marketing strategies, tools and news.

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