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27/10/2011 by

Facebook: Big Bang Or Big Bank For Your Buck?

Brands do like to get a big bang for their buck, that’s why most CMOs have embraced Facebook. But with Facebook Credits, the blue monster might become the world’s biggest bank soon? Will Facebook offer consumers a big bang for their buck too?

While the whole world’s financial system is shaking, banks are falling and existing currencies like the US Dollar are dropping, Facebook is leveraging its own currency: Facebook Credits.

Already 800 Million Facebook users can pay games in Facebook with Facebook Credits. But Facebook is testing payments with Facebook Credits outside Facebook, on other digital platforms.

Facebook users can now logon to the GameHouse website and spend their Facebook Credits here as well. This way gamers will not have to use other currencies and they do not need PayPal or other payment methods either (Credit card, iDeal, Mobile etc).

Facebook is also planning to extend its Credits to mobile platforms like iOS systems by Apple. The commercial idea behind Facebook Credits? Simple! Earn extra money.

30% of Facebook’s revenues are already generated by Credits. Developers, game houses and other content owners get the other 70%, which is similar to Apple’s iTunes Store.

Well if you extrapolate a few of Facebook’s opportunities for a second or two, Houston we might have a problem. Facebook Credits might become a very powerful currency if you realize that 800 Million have access to it.

Facebook might threaten existing payment systems like PayPal or the Credit Card. But Facebook might also use its Credits as gift vouchers, which can be used to buy virtual goods.

Check in my 2009 article how much we globally spend on virtual goods (that story was read over 128,000 times already).

But what if Facebook also launched its Credits in a Gift Voucher that could be redeemed in the physical world, like retail stores?

If we go for an even deeper dive, I will have to refer you to an article I wrote in 2007: Will Social Lending Communities Cut Out Banks? At that specific moment, Facebook was just a small player. Light years away from becoming a player that could achieve world domination.

Well, what if Facebook would offer peer2peer payments and social lending? For small amounts, social lending could be smarter, fairer and more human way of getting money temporary?

Will social lending be Facebook’s next step in leveraging its Credits? If so, Facebook might be cutting out the middleman called Banks. And consumers would be able to loan each other Facebook Credits at a very low interest rate.

If you take a look at social lending company Zopa, might just be an old but still relevant thought?

Zopa is claiming the following: Zopa is a marketplace for money. Lenders get lovely returns, borrowers get low-cost loans and money becomes human again.

What About You?

Please share us your thoughts on Facebook Credits or social lending.


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Igor Beuker
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