What is stopping Facebook users from buying much on Facebook? Security concerns.
The same type of concerns people had when online stores first came up. And even though social commerce is expected to reach $30 billion within five years, people are still hesitant.
Harris Interactive did a survey on behalf of Dititas last month, polling 2,630 U.S. adults aged 18 years and older, of which 2,247 were social media users.
Some highlights of the survey infographic include:
- 55 percent of social media users aren’t comfortable giving credit card information via social media, While the other 45 percent are at least somewhat comfortable doing so, especially men within the age group of 18-54 and having an income of $35,000 or more.
- 20 percent of social media users agree that they would purchase products or services from their favorite brands on a social media site.
- 34 percent of social media users agree that they’d be more likely to share info about a purchase they made on a social media site with friends than one made on a traditional e-commerce site.
- 75 percent of social media users agree that they would be more likely to purchase a product or service that a friend openly endorses via social media, than ones that were “liked” or “followed”
- 74 percent of social media users indicate that they would rather use an alternative payment method than use virtual currency, such as Bitcoin or Facebook Credits to pay for a purchase made on a social media site.
Facebook intends to make Facebook Credits as the de facto virtual currency on Facebook and the time is fast approaching.
Facebook has announced long time back that starting July 1, 2011, all game developers on Facebook are required to use Facebook Credits as a payment option.
Nowadays, Facebook Credits are not only be used to buy virtual game items or goods, but also digital goods like movies, music etc.
So, using a single currency on Facebook will provide users an easy way to buy virtual goods, and to transfer Credits between games and applications. It also takes away the hassle of making transactions through various payments options available on various games and applications.
As the social network giant pockets 30 per cent of all transaction that takes place using Facebook credits, game developers have raise their disapproval, but Facebook justified the move saying the single currency will make it easier for players to pay for things on Facebook. Moreover, Facebook will take over the headache of storing players’ credit card information and the various task associated with protecting and preventing frauds.
Facebook have added more payment options for Facebook Credits in 13 countries in Asia and Latin America. Click here for a complete list of the countries and the payment methods through which you can buy Facebook Credits.
A hacker in Devonshire, England pled guilty to stealing an alleged $12 million worth of poker chips from Zynga’s Texas Hold ‘Em on Facebook.
29-year-old Ashley Mitchell stole 400 billion virtual poker chips which is estimated at $12 million if purchased in the game.
The accused turned to eBay and attempted to sell his chips for about $600 per billion, and netted $85,870 before he was arrested.
While there is an infinite supply of virtual currency and Zynga Poker was actually not deprived of any cash or goods, Prosecutor Gareth Evans stated that it still deserves protection and although Mitchell’s crime was, truly, a victimless one, he will still face time in jail.
Facebook plans to make Facebook Credit as the sole virtual currency on Facebook.
According to Deborah Liu, Platform Marketing Manager at Facebook, all social game developers have to move over to Facebook credits for processing all virtual goods transactions w.e.f July 1.
In her blog post Monday, she said that more than 350 applications from 150 game developers already use Credits, and that accounts for more than 70 percent of all virtual goods transactions on the site.
As we all know, Facebook charge a flat 30% of all transactions that take place through Facebook Credits. So, needless to say, many game developers are unhappy about it, but Facebook (sensing it I guess) revealed two new incentives the company will be offering:
Frictionless payments – For small payments developers can charge through the API and you don’t need a confirmation page.
‘Buy with friends’ – Developers can set up this feature through which users can share a purchase they made with their friends. More than 50 percent of users actually elected to share those purchases. “We’re innovating on social purchasing.”
Gift cards for Facebook Credits, the de facto virtual currency of Facebook, go on sale in the U.K.
They are now available in Tesco and Game stores, in denominations between £5 and £25.
Facebook credits can be bought with credit cards using various payment options on Facebook. However, Facebook says purchasing credits through game cards were a better option for young users of the site.
“By using Facebook Credits as an alternative payment option, they [parents] can control the budget their teen has to play with games online and also avoid fees or overpayment on their credit card. It’s a real plus in terms of security and peace of mind,” explains a Facebook spokesperson.
These gift cards will also provide an alternative for those who don’t want to share their credit card information on the social network site. Moreover, with the festive season just around the corner, gift cards will also make an ideal Christmas present for many users.
