Social Currencies to Disrupt Payments – Part 3 of 3

This is the third and final installment of the 3-part blog series on social currencies and its impact on payments. In part 1, I provided background on Google and Facebook’s social media intentions. In part 2, we took a look at the different payments business models of Google and Facebook, and here we examine some potential barriers as well as the opportunities in social currency adoption.

One hurdle (though minor, in my perspective) is that Facebook Credits charges 30% of earned revenue, which is relatively large in comparison to credit card processors and other options that are typically in the single digits. In the context of other online providers, the rate is in-line with Apple, Google, and Amazon that take 30 percent of all purchases made through iTunes, app stores, or Amazon’s eBooks store. For social game providers the benefits can outweigh the costs, which may be the reason why they are willing to adopt a more expensive, but secure, reliable, and frictionless payment system.

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