Why Is Facebook Giving You Credits?

16 Years Ago CatRambo 0 522 Views

This week players of Facebook games found themselves unexpectedly rewarded for their playtime. The frequent messages that Facebook has awarded the gamer with credits signals Facebook's push to implement Facebook Credits , a virtual currency intended to standardize payments across the multitude of Facebook applications. The push of the credits program has also signaled

The credits can be used for virtual items, gifts, and power-ups in games such as Bejeweled Blitz, Farmville, Mafia Wars and Treasure Madness. Facebook is using a "first taste is free" approach to hook users on credits. Users are seeing popups appear to inform them that they've won Facebook credits. (Users should be careful when claiming their prizes.)

The company's prepared for the push. It's made it as easy as possible for users can buy Facebook credits for 10 cents each --pay with credit card, Paypal or mobile phone. They can also earn credits by filling out surveys or through winning them in promotions .

Facebook's pushing credits through the MyTown application as well as others. Plans to sell Facebook credits in cyber-cafes and 7-11 stores are in the works. Leading game development company Playdom has signed a five year contract with Facebook to exclusively use its credits in its games. Playdom is the largest game producer on MySpace and the third largest on the Facebook platform.

This marks Facebook finally moving to an effective financial model, with an estimated $1 billion in revenue this year, leading blogger Chris Birk to speculate Facebook credits might become the first global currency . This makes , which puzzled analysts, more understandable.

Benefits to developers for using the standardized system include increasing the market and making it easier for consumers to buy items. But Facebook Credits aren't free to use. Facebook charges a fee of 30 percent per transaction and moreover, spells out other restrictions on developers, such as restrictions on selling credits or accepting credits for tangible goods.Shawn Foust on VentureBeat offers a list of strategies for developers who want the advantages that Facebook credits provide , while minimizing their cost.

Dani AI

Generated 9 Months Ago

A quick retrospective and practical update tied to ’s 2010 summary: Facebook’s “Credits” experiment was real but short-lived. In June 2012 Facebook told developers it would phase out the Credits brand and move to local‑currency pricing; the platform converted users’ Credit balances and the Credits system was removed as the company completed the transition in 2013. (en.wikipedia.org)

Answering ’s question about whether Facebook benefited: yes — enabling on‑platform payments became a material revenue stream and gave Facebook leverage over how social apps sell virtual goods. Public filings and industry coverage show the platform migrated away from a single “Credits” currency while keeping a platform payment share and switching to local‑currency settlement for developers. That shift reduced friction for international buyers and matched how developers were already pricing items. (sec.gov)

Practical user safety notes (still relevant today): any unsolicited “you won credits” popup or email should be treated as suspicious. Don’t click unexpected offers, don’t enter credentials on third‑party pages, enable two‑factor authentication, review your payment history, and report suspected fraud to consumer protection bodies. These are standard, high‑impact steps to avoid phishing and payment scams. (consumer.ftc.gov)

Practical guidance for developers and marketers maintaining older apps: don’t design future features around Facebook Credits — migrate to local‑currency payments or vetted external processors, test callbacks/refunds/chargebacks thoroughly, and confirm your fulfillment and logging flows after any platform migration. If you maintain legacy integrations, audit stored balances and receipts to ensure users received promised items during the Credits→local currency conversion. See platform transition notes and corporate filings for timeline and compliance context. (sec.gov)

netvani -3 Junior Poster in Training

15 Years Ago

Now I understand why there are emails sent to me regarding games credits. Facebook really wants to make good social relationship to their members especially those who are playing games. But then, did they really gain benefits from it? Quite curious in that part. Thanks.

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