Facebook Credits
File:Facebook Credits in Target.jpg store in Colorado Springs, September 2010]]
Facebook Credits was a virtual currency that enabled people to purchase items in games and non-gaming applications on the Facebook Platform. One U.S. dollar was the equivalent of 10 Facebook Credits.[https://www.theregister.co.uk/2009/06/03/facebook_payments/ "How will sir pay? Facebook credits, that'll do nicely"]. The Register. Retrieved July 13, 2010. Facebook Credits were available in 15 currencies including U.S. dollars, pound sterling, euros, and Danish kroner.[http://developers.facebook.com/blog/post/416 "Expanding Facebook Credits"]. Facebook Developer Blog. Retrieved January 5, 2011. [https://archive.today/20120711224358/http://developers.facebook.com/blog/post/416/ Archive.] Facebook was hoping eventually to expand Credits into a micropayment system open to any Facebook application, whether a game or a media company application.[https://www.nytimes.com/2010/09/23/technology/23facebook.html?_r=2/ "Facebook Hopes Credits Make Dollars."] The New York Times. Retrieved January 5, 2011. Facebook deprecated Credits in favour of users' local currencies.{{cite web|last=Lafferty|first=Justin|title=Facebook Explains Local Currency For Games|url=http://allfacebook.com/facebook-explains-local-currency-for-games_b113957|publisher=Mediabistro Inc.|access-date=28 May 2014|date=March 27, 2013}}{{cite web|last=Lafferty|first=Justin|title=Facebook Swapping Out Credits, Adding Subscription Billing|url=http://allfacebook.com/facebook-credits-gone-subscription-billing_b92274|access-date=28 May 2014|date=June 19, 2012}}
Facebook Credits went into its alpha stage in May 2009 and progressed into the beta stage in February 2010,[http://developers.facebook.com/blog/post/364 "Expanding Our Commitment to Facebook Credits"]. Facebook. Retrieved July 13, 2010. [https://web.archive.org/web/20101205121208/http://developers.facebook.com/blog/post/364 Archive.] which ended in January 2011.[https://venturebeat.com/2011/01/24/facebook-credits-mandatory/ "Facebook confirms plans to make Credits the mandatory “universal currency.”] VentureBeat. Retrieved January 24, 2011. At that time, Facebook announced all Facebook game developers would be required to process payments only through Facebook Credits from July 1, 2011.[http://www.insidefacebook.com/2011/01/24/facebook-sets-july-1-2011-deadline-to-make-credits-sole-canvas-game-payment-option/ "Facebook Sets July, 1, 2011 Deadline to Make Credits Sole Canvas Game Payment Option.”] {{Webarchive|url=https://web.archive.org/web/20140429162314/http://www.insidefacebook.com/2011/01/24/facebook-sets-july-1-2011-deadline-to-make-credits-sole-canvas-game-payment-option/ |date=2014-04-29 }} Inside Facebook. Retrieved January 24, 2011.
Facebook retains 30% and developers get 70% of all revenue earned through Credits.[http://news.cnet.com/8301-13577_3-10460201-36.html "Facebook to developers: Get ready for Credits"] {{Webarchive|url=https://web.archive.org/web/20130823074115/http://news.cnet.com/8301-13577_3-10460201-36.html |date=2013-08-23 }}. CNET. Retrieved July 13, 2010. Credits is a single currency that can be used in multiple games and applications, and its introduction led former PayPal executives to comment on whether or not Credits could soon replace PayPal as the leader in virtual payments.[http://www.insidefacebook.com/2010/06/11/former-paypal-leaders-debate-can-facebook-credits-replace-paypal/ "Former PayPal Leaders Debate: Can Facebook Credits Replace PayPal?"] {{Webarchive|url=https://web.archive.org/web/20131105012117/http://www.insidefacebook.com/2010/06/11/former-paypal-leaders-debate-can-facebook-credits-replace-paypal/ |date=2013-11-05 }}. Inside Facebook. Retrieved July 13, 2010. By the end of 2010, it was expected that Facebook users would purchase Credits to pay for the majority of virtual goods sold on the social network.
In March 2011, Facebook created an official subsidiary to handle payments: Facebook Payments Inc.[http://www.allfacebook.com/facebook-creates-payments-subsidiary-2011-03? Facebook Creates Payments Subsidiary] ([https://web.archive.org/web/20110323042329/http://www.allfacebook.com/facebook-creates-payments-subsidiary-2011-03 archive])
In June 2012, Facebook announced it would no longer use its own money system, Facebook Credits. Users with credits will see them converted into their own currencies.[https://www.bbc.co.uk/news/technology-18519921 "Facebook scraps its own Credits currency for apps"]. BBC News. Retrieved June 20, 2012. Facebook Credits was officially removed from Facebook in September 2013.[http://www.adweek.com/socialtimes/farewell-facebook-credits/428240 Farewell, Facebook Credits] Adweek, David Cohen. September 13, 2013.
Using Credits
Over 150 developers used Facebook Credits in more than 650 Facebook games and applications, which represented over 70% of virtual goods purchased on Facebook. Developers who offered Facebook Credits include Zynga (FarmVille, FrontierVille), CrowdStar (Happy Aquarium, HelloCity), and PopCap Games (Bejeweled Blitz)[https://www.usatoday.com/money/industries/retail/2010-09-01-target01_ST_N.htm "Target to sell Facebook Credits gift cards."] USA Today. Retrieved January 5, 2011. as well as Playdom, Playfish, RockYou, and 6waves.
In September 2010, it was announced that Facebook Credits would become the exclusive payment method for all games developed by Zynga and hosted on Facebook.[http://www.allfacebook.com/zynga-facebook-credit-2010-09 "Zynga Readies Switch to Facebook Credits"] AllFacebook.com. Retrieved January 5, 2011.{{cite book|author=Face Dominator|title=Facebook Friend adder|url=http://facedominator.com/index.php#FEATURES|year=2013|access-date=2013-11-17|archive-url=https://web.archive.org/web/20131113024641/http://www.facedominator.com/index.php#FEATURES|archive-date=2013-11-13|url-status=dead}} Zynga is the number one Facebook application developer and was expected to earn $500 million in 2010 from virtual goods.
It was announced in April 2011 that Facebook users would be able to use Credits to purchase vouchers that can be redeemed for real goods and services by using the "Deals" offering.{{cite news | first = Miguel | last = Helft | title = Facebook Is Latest Rival to Groupon and LivingSocial | date = April 25, 2011 | work = The New York Times | url = http://bits.blogs.nytimes.com/2011/04/25/facebook-is-latest-rival-to-groupon-livingsocial-facebook/ | access-date = 2011-04-26}}{{cite news | first = Tom | last = Cheredar | title = Facebook launches Deals against Groupon and LivingSocial in five major cities | date = April 25, 2011 | url = https://venturebeat.com/2011/04/25/facebook-launches-deals/ | work = VentureBeat | access-date = 2011-04-26}}
Obtaining Credits
In addition to purchasing Credits within Facebook, there were a number of online and offline channels for earning or buying Facebook Credits. These included the following.
- Gift cards — In the U.S., Target, Walmart, Best Buy, Radio Shack, GameStop, and Safeway sold Facebook credit gift cards in their stores. Facebook Credits gift cards were sold in Tesco and Game shops in the U.K.[https://www.telegraph.co.uk/technology/facebook/8139538/Facebook-Credits-go-on-sale-in-the-UK.html "Facebook Credits go on sale in the UK."] The Telegraph. Retrieved January 5, 2011. Facebook Credits gift cards were also sold in over 500,000 outlets in five Southeast Asian countries, India, Australia, and New Zealand.[https://www.usatoday.com/tech/news/2010-07-12-facebook-credits_N.htm?loc=interstitialskip "Facebook Hopes Credits Make Dollars."] USA Today. Retrieved January 5, 2011.
- Rixty let users get Facebook Credits by buying a prepaid Rixty giftcard with coins or cash at stores and then converting it to Facebook Credits.
- shopkick allowed users to earn Facebook Credits by checking into stores with an iPhone or Android application.
- ifeelgoods enabled online retailers to offer Facebook Credits as incentives for making purchases, signing up for e-mail newsletters, and other actions.[http://mashable.com/2010/09/27/facebook-credits-for-online-shopping/ "Online Retailers to Offer Facebook Credits as Shopping Incentives."] Mashable. Retrieved January 5, 2011.
- AppDog awarded users with an Apple or Android mobile device with free Facebook Credits in exchange for downloading apps. Downloaded apps can be free or paid.
- (TrialPay) issued Facebook Credits as an incentive for users to sign up for advertiser services (i.e. sign-up for a Netflix account), complete market research surveys or interact with brand-sponsored videos/engagements. Users could access TrialPay on the Facebook platform through a variety of ways including in-game icons DealSpot or an 'Earn Credits' tab within the game environment.{{Cite web|url=https://techcrunch.com/2010/10/06/trialpays-dealspot-brings-in-game-deals-to-virtual-currency-offers/|title=TrialPay's DealSpot Brings In-Game Deals to Virtual Currency Offers|date=6 October 2010 }}
US Regulation of Facebook Credits and other Virtual Currencies
In March 2013, FinCen announced new guidance relating to the regulation of virtual currencies such as Facebook Credits and bitcoin{{cite web|title=FinCEN Takes Note of Bitcoin, Facebook Credits, and the Rest|url=http://www.paymentsjournal.com/Content/Featured_Stories/15669/|access-date=28 May 2014|date=March 19, 2013|publisher=Mercator Advisory Group.|archive-url=https://web.archive.org/web/20140529084329/http://www.paymentsjournal.com/Content/Featured_Stories/15669/|archive-date=29 May 2014|url-status=dead}} These regulations will have an impact of those who deal in virtual currencies and is seen as FinCen's first step towards regulating virtual currency (as opposed to Fiat money.) As regulation of such currencies expands, there is a possibility that individual U.S. Citizens may be required to report substantial holdings of these currencies on their tax returns.
See also
References
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External links
- [https://web.archive.org/web/20120104022851/http://www.facebook.com/credits/ Official website] (archive of 4 January 2012)
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