As most people will have probably read, the social network platform Facebook is aiming for a full launch of its virtual currency Facebook Credits in September. It’s a move that could lead to it becoming the default online currency rivalling leaders such as PayPal.
All of this comes on the heels of the debate about whether the site should stay true to it’s purpose, resisting the temptation to carry too much external advertising, however attractive the proposition might be to an audience of over 400 million active users. So maybe the step into virtual currency isn’t such a leap of faith after all. When you look at the statistics, it’s not difficult to see why - 50% of active users log on to Facebook in any given day. Each Facebook user has, on average, 130 friends and users spend over 500 billion minutes per month on the site. Where do they find the time?
So, here’s the skinny – credits will be aimed at virtual goods like games but will eventually let consumers buy anything, including physical goods. Accounts will be topped up with any credit card and charge a merchant 30% commission.
A Facebook spokeswoman has commented “We are continuing to look at ways to extend our virtual currency via a test with several developers. The test started in May 2009 and is exploring ways for people to use their Facebook Credits with third-party applications and games on Facebook.”
Other industry observers have commented, “The real opportunity is within Facebook Connect. If it can integrate with that, it will mean a much broader network of sites can implement the currency. Another opportunity is for advertisers to incentivise people to engage by offering Credits in return for interacting with branded content or ‘liking’ the brand within Facebook”.
Since Facebook first announced that it would be implementing Facebook Credits last year, many app developers have been unhappy about the proposed 30% that it plans to charge for each transaction. So, the concerns are very much part of the Reputation Management challenge.
Facebook needs to be very clear about it’s focus. Its responsibility (and it is just that) is to provide 100’s of millions of disconnected people around the world a safe, secure and intuitive environment for them to connect and share. Now, arguably the largest online community anywhere is being asked to believe in that environment becoming a commercial melting pot.
Sounds a little too hot to dip the social networking toe into. Or is Facebook about to become an anti-social network? Watch this space…
Posted by Simon Johnson
Credit to NMA for comments used.
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