In your face (book), time to pay
Facebook, perhaps still stinging from reports that it isn't worth nearly as much as the investment stake made by Microsoft, might be developing an online payment system. The idea is to have a "universal currency" linked with everyone's Facebook account, so that you can conduct transactions on Facebook, its apps, and third party sites you reach via Facebook Connect.
But why? Social gaming companies have been adept at getting people to pay for the experience, something that Facebook and other social networking sites haven't quite figured out how to do. And when you have 250 million people playing social games online alone this year instead of socialising, there is money to be made.
How profitable could this be? The heaviest users of social gaming sites only spend about £35 ($50) a month on premium games and buying virtual goods. Yes. Virtual goods. Zynga and Playdom are the two big winners in the market. And when you have 250 million potential customers, 2% to 10% quickly adds up.
However, the potential of fraud is always a possibility. People paying real money for virtual things... what could possibly go wrong?
TOPICS: Social Media