Facebook Credits Virtual Currency on Track to Be Larger Than Most Nations' Real Currency

Social Times Pro just published my report on the future of Facebook Credits (if you want to check it out, use my special reader discount code "NWNM"), and my research for it brought up a number of compelling forecasts on the official virtual currency for the social network, such as:

• Facebook Credits will likely have nearly 25 million users in the next 12 months.
• By 2016, Facebook Credits will probably have 100 million users.

With those numbers, Facebook Credits will soon be used by more people than most real world national currencies. (There are only eleven countries with populations over 100 million.) These are probably conservative forecasts, considering Facebook just launched a new Groupon-style offering called Deals, discounts at restaurants, hotels, etc. which can be purchased with Facebook Credits via a coupon. This probably makes Facebook Credits the largest virtual currency that can be used for over-the-table purchases of real world physical goods (at least in the West). In my book The Making of Second Life, I predicted that Linden Dollars could by 2013 become the first virtual currency to be officially recognized by G20 governing bodies. That was then. Now, it seems much more likely that Facebook Credits will earn that distinction.

Comments

[Niko Donburi]

I'd love to read your report on Social Times Pro, but even with your promo discount it is a bit too steep for this virtual wallet...

At any rate, I think that you are right on the mark with your observation that FB Credits will become the de facto virtual currency. Facebook has been working on getting an internal currency exchange for some time, which provides it with a monetary stream that can be tapped and taxed at will.

Once third-party purchases can be run through FB, it will be the demise of PayPal as the market leader. Keep in mind that Zynga (the FB game maker) is the #2 user of Paypal behind Ebay (see http://www.businessweek.com/magazine/content/10_18/b4176047938855.htm). That's a lot of business to lose. Of course, if FB can get Amazon to sign on to the option of using their Facebook Credits....

As far as how this affects SL, I wouldn't be surprised to see some more Lindens jump ship and hop over to FB, particularly if they have experience with dealing with the intricacies and issues of virtual currency--that, thus far, has been limited mostly to SL.

[Ryan]

Facebook Credits could be the currency of the new world order! I kid.. or maybe I don't..

Let's be honest, it's just Facebook trying to make a ton of extra money. They keep 30% off the top of everything. That's better than any government makes on businesses as far as tax. They are basically running a racket.