The introduction of Facebook Credits is one of the most significant moves that Facebook has made to date. Many experts consider it a bold move. Since the launching, Facebook Credits has greatly changed its users’ purchasing behavior. Facebook’s decision to revert the use of real currencies in doing business with clients eventually cut short the existence of Facebook Credits. However, many users remain clueless as to what the discontinued virtual currency is all about. To answer some of these users’ questions, this article provides a brief but detailed discussion about Facebook Credits below.
What Is Facebook Credits?
Facebook Credits is a type of virtual currency that Facebook introduced in May 2009. During its launch, Facebook has hinted that the users will use Facebook Credits to purchase a range of Facebook virtual goods. These include the gaming and non-gaming applications that they can use or play within the Facebook Platform.
Many industry observers, revealed that the launch of Facebook Credits was the giant social media platform’s way to make money and prevent the need for users to pay a certain fee in exchange for using Facebook. Also, the intention of introducing Facebook Credits is to keep Facebook free from ads.
During its launch, Facebook Credits was available in 15 different currencies. These currencies include the U.S. dollar, Euro, Dutch Kroner, Sterling, and Pound. In its earliest phase, a U.S. dollar is equivalent to 10 Facebook Credits. Aside from purchasing Facebook virtual goods, many experts believed that the use of this virtual currency is going to expand. Besides, it will become a micropayment system for handling payments for all Facebook applications.
Historical Timeline
The introduction of Facebook Credits happened in May 2009. This was the first time that the social media platform opened the idea of having its virtual currency. Upon its introduction, Facebook implemented a series of upgrades. Besides, this helped the credit progress into its beta stage in February 2010. However, it ended on January 2011.
Upon launching the credits, Facebook also made an announcement. It said that all the developers of games on the platform need to make all the payments that they receive processed using Facebook Credits. It started on the first day of July 2011. Within this setup, the game developers get 70% of the entire revenues earned using the new credits system while Facebook gets the remaining 30%. Due to this announcement, it has become a common knowledge that it’s compulsory for Facebook users by the end of 2010 to buy Credits. This is for them to pay all the virtual goods purchased from social media. Also, Facebook released the needed information to help users learn how to earn Facebook Credits.
Due to the anticipated spike in the volume of purchases made using Facebook Credits, the social media giant established Facebook Payments Inc. This body was the official subsidiary of Facebook handling all the payments using the company’s virtual currency.
Surprisingly, there was an announcement in June 2012. It was said that Facebook credits can’t be used for purchasing virtual goods. Facebook also hinted that the remaining credits that users have will be converted to their selected currency. Moreover, they can still use their credits to make Facebook-related purchases and payments. Removing of Facebook Credits from the social media platform happened on September 2013.
Pros Of Using Facebook Credits
Despite its relatively short-lived existence, the introduction of Facebook Credits brought many advantages among users. The most significant of these are the following:
1. Provides A Stronger Identity As A Facebook User
The use of Facebook Credits is an effective way of providing Facebook users with a stronger identity as a recognized community. This is because, instead of using their respective currencies that go along with the ever-changing exchange rates, using the Credits can make them feel that they belong to a unified Facebook community. The Credits are valid for use in all payments and purchases made within Facebook. However, using this regularly gives them a strong sense of pride and loyalty to the social media platform.
2. Provides A More Convenient Purchasing Experience
Aside from providing a stronger identity as a user, Facebook Credits also made the purchases and payments more convenient. This is because the users only need to buy or earn the needed amount of credits to purchase apps and other virtual goods. The good thing is that the users will see the excess credits credited automatically to their accounts. Moreover, they can readily use these on their next transactions that require credit transfer.
Cons Of Using Facebook Credits
Just like the others, the use of Facebook Credits has its own set of disadvantages. Among the most notable of these are the following:
1. Easily Gets Stolen
Many of those who are against the use of Facebook Credits as the social media platform’s only valid currency pointed out that the credits can be easily stolen. They revealed that this could be done by hackers who are capable of hacking Facebook accounts. They can transfer the credits to either a dummy or their accounts. Since these hackers can gain access to more accounts, the number of users that will most likely fall to their scheme will be relatively higher.
Such claims are very much possible. However, Facebook implemented some security measures designed to boost the safety features of Facebook accounts. Also, there was a belief that Facebook placed several security checks. These could prevent hackers from transferring the other users’ credits to their accounts or other dummy accounts.
2. Has Limited Validity
There was criticism for the limited validity of the use of Facebook Credits. This is because the Credits is only valid for purchasing apps and other virtual goods. Also, this can’t be used to make payments just like other virtual currencies like that of PayPal.
However, many users countered that Facebook Credits most likely to become a widely-used object of exchange and virtual currency for more transactions. It is if it will remain available for a few more years.
