Post-IPO, Facebook is feeling the
pressure more than ever to demonstrate it has a sustainable revenue model. Currently,
a portion of Facebook’s revenue stream comes from selling virtual currency-
Facebook Credits – which allows its holders to buy online games. Now, the
company announced that it will be growing its payment platform, allowing users,
both on their computers and mobiles, to not only buy online games or use the
site to generate awareness, but also complete a sale in their local currency.
This is crucial given Facebook’s global footprint Facebook.
Company representatives said that "by
supporting pricing in local currency, we hope to simplify the purchase
experience, give you more flexibility, and make it easier to reach a global
audience of Facebook users who want a way to pay for your apps and games in
their local currency."
This will diversify Facebook’s
revenue base as well as keep visitors on the site longer, a valuable feature
since Facebook can then gain data on what type of products their users are
buying, thereby increasing the effectiveness of their advertising proposition. Visitors to the site can now also subscribe to
monthly services, such as a magazine subscription, and set up payment
schedules.
So in about a month the play money
of Facebook credits will be gone, in exchange for our stored credit card
information, allowing us to purchase anything on a whim. This will surely lead
to the propagation of many Facebook stores, giving people another reason to spend
too much time on the site, but also giving Wall Street analysts a reason to
smile...
-Danielle Cervelli
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