Facebook virtual payments (aka Facebook credits) are a special type of online currency that allows users to purchase games and applications within the world’s most popular social networking platform.
After entering your credit card information once, you can easily buy, spend and even earn credits across more than 350 applications within Facebook.
The program has been so successful that more than 70 percent of all virtual transactions on Facebook use these credits. What’s more, less than 2 percent of Facebook subscribers have begun using this virtual currency, suggesting almost unlimited growth potential for the payment platform.
But what is driving this growth, and how are Facebook virtual payments helping to transform the world of online shopping?
The Main Benefits of Facebook Virtual Payments
There are numerous benefits of Facebook’s virtual payment system — both for the social network itself and for end users:
1. How Facebook Benefits
As with most virtual currencies, Facebook credits require that users enter their credit card information once. Thereafter, they can make purchases at any time in the future. There are two important advantages of this approach:
- More impulse purchases: Users are spending credits — not physical cash. It’s the same reason why casinos use gambling chips and arcades use gaming tokens.
- Better tracking and analytics: It becomes easier to study and manage user behavior when you have a centralized payment system. Facebook can track conversions, boost ROIs, and show targeted ads with much greater accuracy.
2. How Facebook Users Benefit
For Facebook users, the advantages of virtual credits are equally enticing. They benefit from more secure payment options by introducing an extra buffer in between their bank accounts and vendors.
In addition, users have access to a much broader range of currency options. Every game developer and vendor already accepts U.S. dollars. But thanks to Facebook virtual payments, users can also purchase new apps using more obscure, regional payment options such as:
- Webmoney Transfer
What Facebook Virtual Payments Mean for Your Business
With more than 1.3 billion users around the world, Facebook has the resources to create a trusted virtual payment network for its products and services.
But what about your business? Even if you can’t build your own virtual payment system from scratch, you can still glean important lessons from Facebook’s success:
- Reduce purchasing barriers by allowing users to save payment information for future transactions.
- Expand your payment options to include all major credit cards, foreign currencies and local payment platforms.
- Make online payment security a central pillar of your payment network.
Need help implementing these online payment strategies? Use the free links and resources down below: