Facebook Credits to become required

Facebook Credits are a transaction program linked to your Facebook account. First rolled out at the end of 2009, Facebook credits are ordered with "real" currency. On July 1, 2011, Facebook Credits will become the mandatory currency for all Facebook developers. People will now only be taking out a payday advance for one form of credits with Facebook rather than multiple forms with all the uses there are currently on Facebook. Article source – Facebook credits to become a mandatory payment system by MoneyBlogNewz.

The system of Facebook Credits

Facebook Credits are a transaction program for use in games and programs built into Facebook. Facebook Credits are used to buy things from Farmville plants to Castle Wars medallions. There is an exchange rate right now of 10 to 1. That means for every United States dollar paid you can get 10 Facebook credits. Facebook Credits could be purchased using PayPal, credit cards and mobile payment systems. You will find several different currency standards that Facebook Credits will do exchange rates with.

Making Facebook Credits necessary

Today, Facebook announced that it would require all game developers to use Facebook Credits as of July 1. Game developers are nevertheless allowed to create and use their own in-game currency, but they can only be purchased with credits. Facebook says that it is putting this program in place to remove the barrier for entry that setting up payment systems can create. Facebook takes a 30 percent cut of all Facebook Credits transactions. Zynga was one developer to pay $30 million to Facebook to actually pay the 30 percent tax in 2010. Facebook Credits will mostly go to game developers though. This is 70 percent going to them.

How micropayments will start to impact the near future

"Micropayments," generally less than $5 in small payments and purchases, are what the Facebook Credits program is based off of. Millions, possibly billions, will be made by Facebook with Facebook Credits. Facebook hopes to be like PayPal or the Starbucks Card system in that it will be a Credit program that is expanded into a complete transaction system. There will, more than likely, be failure with this system. It probably would not work. There was a banking crisis for the online game Second Life in 2008. Users ended up losing millions of dollars because of this. Several wonder if this can be the exact same thing to occur to Facebook. It is a possibility. 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/