Ka-ching
Facebook has begun a closed beta pilot of its payment system for app developers.
The program would create a universal currency for all Facebook apps, making it easier for users to purchase across vendors — and ideally enabling both developers and Facebook to monetize their entertainment offerings with greater ease. It is being tested on three applications so far, but more apps will be added in the weeks to come.
Presently, developers either use virtual currencies or filter users through third parties like Paypal; a proprietary Facebook payment platform would make purchasing more intuitive few-click process, much like purchasing music on iTunes.
Facebook does not make money directly from application use — a travesty, given what popular apps have managed to make on its platform. Zynga, a major app developer on Facebook, boasting 42 million users in toto, is nearing annual sales of $100 million as the result of virtual goods and credits, says the Financial Times. Developers in total are expected to generate $500 million in revenue this year.
Even when developers support their apps with ads, they are able to keep 100% of ad revenue generated, according to Inside Facebook. But the popular socnet — which grew 700% year-over-year as of April '09 — could charge a small commission for the convenience of using its payment platform.
"Control equals revenue," stated Director-Payments Research/Consulting Bruce Cundiff at Javelin Strategy and Research (via FT.com). Facebook has a "[captive] user base, and they're going to make it as easy as possible to buy Facebook credits and use them."
Developers interested in joining the beta can visit Developer Forums and email Facebook's Platform team. They will need to sign a non-disclosure agreement (NDA) to participate.
At present, Facebook boasts over 300 million registered active users, of which it claims 50% log in daily and spend an average of over 20 minutes on the site. Last week, Digital Sky Technologies invested $200 million in the socnet, valuing its stock at $10 billion.
Image credit: flickr user skpy via Creative Commons. Views expressed in this article do not represent those of the photographer.
