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Facebook introduces virtual currency to support local currency payments, launches new payments API

facebookcreditsAs announced by Facebook last year, that it will put an end to its credit support system for virtual currency and rather support a local currency payment to buy virtual goods on its platform – the social network has finally done so.

The idea behind the move was to simplify the purchase experience for the users and make it easier for developers to price their virtual goods dynamically for a global audience – and moreover, position itself as an international app platform.

Earlier in June, the company gave a 90 days notice period to all its developers by launching the local currency payments API and asked to integrate it into their current and future apps and migrate their apps to continue accepting payments.

Starting from today, what this new API means for developers and users?

  • This will offer “more control” to developers over the pricing of their in-game purchases by allowing them to set prices – as per international currency fluctuations. And a more clear price for users.

  • Developers can now set the prices as per the buying power of the population in a given country, and encourage people from around the globe to pay. This might reduce the price of some virtual goods available in Facebook apps in countries like India.

  • Rather than buying credits first to make further purchases, users can now buy goods directly. An easy fast process for users and chances of increasing the selling frequency for the developers.

  • Users will now be able to see the actual cost of virtual goods in their own currency – rather than doing calculations in mind for the actual money they’ve spent against the price of one Credit.

Well, the move isn’t just to make users and developers happy by offering them more freedom, clarity and speed in the buying process of virtual goods. As Facebook charges 30 percent from developers for each transaction – this will also help Facebook to increase its share in app purchases – if the change encourages more payments.

This would perhaps also help Facebook to tap those 5 billion people that the company is planning to introduce to the world of internet. As a more easy/direct process of app purchases will help them understand the whole phenomenon of online buying.

Is Facebook planning to enter the world of commerce ? Leave your comments.

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