Facebook Testing Credits on Third Party Sites -- Big Move to Become the Internet's Main Virtual Currency

Facebook is now testing the use of its virtual currency, Facebook Credits, on third party sites outside of Facebook. This is a huge move but not an unexpected one: When I wrote an analysis paper on Credits back in May, this was among the top forecasts. Since then, I'd roughly estimate about 25-40 million people regularly using Facebook Credits now, just to play games within Facebook. Since then, there's also a lot of non-gaming content you can buy with Facebook Credits, such as music and TV shows, making this install base much more likely to grow. And if this trial launch of third party sites is successful (as is very likely), I bet we'll see more content being offered for Facebook Credits, even physical products and services. That's right: Facebook Credits are on track to become the Internet's official virtual currency.

Speaking of which: Hey, Linden Lab, I hope you're applying to become a third party site that sells your own Second Life virtual currency for Facebook Credits. I really think the nearly 200,000 people in your Facebook group will be excited by that offer. As will the hundreds of thousands more who would be, after it went online.

Comments

[Patchouli Woollahra]

What you might not be aware of is the fact that Facebook takes a 30% cut of all Facebook credits used. If I used 10 FBCs (1USD) to buy Lindens from LL through the currency exchange, LL would be obliged to supply me with barely more than 67 US cents' worth of L$ after deducting the cost of that Facebook commission (30 cents on the dollar) and the per-transaction fee levied on buyers (3 cents on the dollar)

Having said that, it would still be cheaper for me. I currently tend to get my L$ off First Meta Exchange.

Assuming I bought 2500 L$ at current rates of exchange:

For a direct L$ buy off LL's currency exchange, I would need to pay $10.09. To maintain the same level of profit, LL would need to bill me for 1309 FBOCs (about USD$13.09).

Via First Meta Xchange, using MOLpoints as a alternative virtual currency - I would need to pay US$14.47. As MOL levies a 15% commission at the time the points are purchased (rather than when they are spent), I would have had to buy about US$17.02 worth of MOLpoints.

That's almost four dollars worth of savings. There probably would be even more if more L$ were purchased, and for purchases of L$ exceeding US$200+ in value, it would become impossible to use MOLpoints because of limits imposed (and because if you can afford to spend more than US$200 in one shot regularly, you surely must have access to a more direct form of payment like bank cheques or Paypal!)

Just a quick analysis. I could be wrong of course, as First Meta is currently reducing its infrastructural requirements in order to reduce the cost of servicing its traders, including the removal of convenience-at-great-cost payment services like Zong Mobile payments. If I check in six months' time, it might be conceivable there might be a plunge in the price offered by FMX attributable to these changes.

But that is later, and this now.

/Just my L$5 worth to open discussion.

[shockwave yareach]

I will never use EITHER Facebook nor LL credit/moonrocks/beans/clams/pepsipoints outside of their systems. The day I would trust either company with a realworld business application will be the day I suffer a stroke. Both companies have shown themselves to be utterly untrustworthy and unbusinesslike -- LL has gone so far as to be criminal with bait and switch tactics. So neither will become a universal currency for the internet for anyone with more than a split second to research the companies wanting their money.