Facebook Credits, the virtual cash associated with your Facebook account, has that frightening 3 m’s mix we see in the biggest technology hits:
- momentum, it’s hardly even out of R&D (still available only to beta partners) but companies like Rixty are building it into Coinstar machines for kids to gain virtual credit with real pocket money.
- monopoly, you can’t compete with it – it’s an easy extension of Facebook’s 500 million user near monopoly of the social graph. No other payment platform could build that many users so quickly.
- meliority, it’s better than the rest. The smooth payment system (a few clicks) contrasts sharply with the “leave the shop, pay at the bank, return to the shop” payment experience we’ve come to expect. Some early adopters like Crowdstar have seen an ARPU jump of 50% despite the 30% transaction fee Facebook charge.
So what should we do to be ready you cry? Well you might want to start by requesting a copy of Nudge’s white paper on “the next online payment revolution – how Facebook credits will affect your business and how you can be prepared”.