Facebook has announced it will be phasing out its virtual payment system, Facebook Credits. The Social Networking company is now allowing app and game developers to accept local currency. The company has also introduced subscription plans, especially for media and entertainment companies.
The move to phase out Facebook Credits is considered to be an attempt to attract more investors after its widely discussed IPO debacle. Facebook had launched its Credits system in 2009, which has been extensively used to purchase virtual goods on social games such as FarmVille. It's claimed that about 15 million users purchased virtual goods via Facebook Credits.
“We are updating our payments product to support pricing in local currency (ex: US dollar, British pound and Japanese yen) instead of Credits,” said Facebook on its website.
“By supporting pricing in local currency, we hope to simplify the purchase experience, give you more flexibility, and make it easier to reach a global audience of Facebook users who want a way to pay for your apps and games in their local currency.”
Facebook believes the transition to local currencies will provide “seamless” opportunities for Facebook users. "Already, most people see items priced in their local currency in the payments flow," Facebook added.
The remaining Credits and gift card balances will be converted into local currency, which users can use for buy in-app items. Local currency support for in-app purchase is likely to be rolled out in the next few months, and by this year end, all the apps or games selling virtual systems will switch to the new local currency system.
For more and the latest information about local currency format, visit Facebook's FAQ section.
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