If Facebook gets its way, there may soon be only one payment option available for the purchase of virtual goods.
You guessed it – Facebook credits.
Since early last year, Facebook has been funneling app developers like AvenueSocial away from credit card payments, game cards and offer walls – all in the name of promoting Facebook credits as the payment method of choice.
Or force, as it were.
In fact, Facebook openly announced its intention to phase out alternate payment methods in favor of credits before the end of 2010. That didn’t pan out entirely, but major app developers have been quietly required to sign five-year agreements that offer credits – and no other payment option at all.
The reason that Facebook holds credits in such high esteem is clear. The social media juggernaut gets a 30% cut of all credit transactions. That’s a pretty hefty piece of the pie, no doubt fueled in part by Apple’s success with pushing a 70-30 split between app developers and Apple itself.
Initially, Facebook credits were billed at the currency of choice for purchase of virtual goods, most notably for social gaming applications on the site. Of course, resistance to the credits program seemed to be an inevitable outcome, since app developers are keenly aware that most buyers (of any product, not just apps) demand flexibility when it comes to payment options.
Some game developers (Zynga, most notably) have successfully resisted the Facebook credit funnel. Two of the most popular Facebook games, CityVille and FarmVille both continue to enjoy a variety of virtual goods payment options, including not only Facebook credits, but also game cards and offer walls.
Of course, not every developer carries the kind of clout that big players like Zynga do. Which means that before too long, Facebook credits might be the only option for more than just virtual goods. Indeed, we could see things like online news stories, music files and event tickets sold digitally requiring Facebook credits for purchase.
So what’s a small app developer to do? Grin and bear it, we say. After all, Facebook has become a platform that offers a wealth of opportunity for all kinds of businesses today. And taking advantage of any great opportunity usually means there’s a piper to pay someplace.
In this case, the piper is Facebook – and the fee is 30%.

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