Facebook Credits is a virtual currency that enables people to purchase items in games and non-gaming applications on the Facebook Platform. One U.S. dollar is the equivalent of 10 Facebook Credits.[1] Facebook Credits are currently available in 15 currencies including U.S. dollars, pound sterling, euros, and Danish kroner.[2] Eventually, it's expected Facebook will expand Credits into a micropayment system open to any Facebook application, whether a game or a media company application.[3]
Facebook Credits went into its alpha stage in May 2009 and progressed into the beta stage in February 2010[4], which ended in January 2011.[5] At that time, Facebook announced all Facebook game developers would be required to process payments only through Facebook Credits from July 1, 2011.[6]
Facebook retains 30% and developers get 70% of all revenue earned through Credits.[7] Credits is a single currency that can be used in multiple games and applications, and its introduction led former PayPal executives to comment on whether or not Credits could soon replace PayPal as the leader in virtual payments.[8] By the end of 2010, it was expected that Facebook users would purchase Credits to pay for the majority of virtual goods sold on the social network.[3]
In March 2011, Facebook has created an official subsidiary to handle payments: Facebook Payments Inc.[9]
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