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There has been speculation for well over a year now about Facebook’s “soon to launch” virtual currency, but up until now, no services had been rolled out. As of last night, Facebook began testing the ability to let users send credits to each via comments according to Venturebeat’s Eric Eldon. Facebook has previously reached out to developers via the developer forum for testing out a virtual currency system but since then very little has been mentioned.
If you haven’t interacted with Facebook’s credit system yet, it’s an easy way to purchase virtual gifts that you send to your friends … at least that’s how it works currently. While it’s early to speculate that this is may be part of Facebook’s micro-payments platform, this is the first person to person credit exchange. Right now it’s not clear if there is a maximum number of credits you can send to an individual.
Why you would send your friends any substantial amount of credits is beyond me since you can currently only use those credits to purchase Facebook gifts. My guess is Facebook wants to make sure they have a scalable transaction system and starting with user-to-user credits is a great way to get started. Right now 100 credits is equal to $1 USD although other currencies have different conversion rates as far as I know.
Right now the system is extremely limited but I’d expect this to expand into other directions. Ultimately Facebook could become the social currency that eventually lets other applications integrate into the system on the platform and through Facebook Connect. For now the system will be limited to sending credits via comments.
Do you think this is an effective way for Facebook to generate more revenue? Will you be sending credits to your friends for posting good content?
IMHO that is terrible placement. I dunno why people would send credits for a status message, other than “Please send me credits”
>_<
I agree. The “like” system is more than adequate to give reward to people. I’m sure Facebook has something in the works to really make use of this product in a valuable and meaningful way.
Ha ha ha. I think there is potential in a system like that. Especially if users eventually get a way to cash credits back out for cash.
However, the penalty for having your account shanghai’d just became huge. Now there’s money on the line as well, with this system.
It might turn out to be a profitable business channel like second life. I cannot wait to see what kind of business models will it spring.
I would like to see this asap done, and give some competition to Paypal
right now there is no point they put Like link for status because it will not digg to highlights section. using virtual currency will make ppl addict to update status and facebook developer happy.
I won’t be paying my friends for good status updates, but I definitely see potential in making Facebook the new Paypal.
Facebook can’t manage a developer verification much less an entire virtual currency platform. Doomed from the start.
Why would I want to give credits to my friends for their status updates? It’s an odd place to put the feature, for sure.
Currency really only makes sense inside an application, where there’s some point to it. Unless FB offers something cool to do with the credits once you’ve earned them, this is going to flop. Hard.
Useless gimmick for now, but might eventually turn out to be a new revolution in e-commerce, who knows!
This could turn out to be successful if and I repeat ONLY IF - the money isn’t tied to some credit card, bank account, or other electronic-only monetary system. Let me explain - there are still many, many people who distrust, or just don’t have a preference for putting their money online. However, here in Italy for example almost everybody uses prepaid ‘cards’ that you can buy almost anywhere (cafe’s, shops, supermarkets etc.) that are in small denominations like 10, 25 euros etc. You use these to charge up your prepaid phone, which is what everyone uses here. If they made some sort of ‘facebook money’ that you can just easily buy and then just type in the code on the facebook website, and you instantly have the ‘credits’ - then it can work. However if they make it like a PayPal system where you have to have your full identity details, social security numbers, verification, etc. then it it doomed to fail since most people in the world won’t be willing to go through all that, both for security/trust issues but also due to the hassle. I say, make it like digital ‘cash’ and it will work… and the ‘credits’ would have to be easily exchangeable back into real cash (with no ID/verification/documentation drama), at any cafe’, shop, 7-11 etc. Make it like PayPal.. and it’s doomed to fail, most people won’t use it.