Facebook’s experiment with Facebook Credits has not worked out the way it had wished and so it is going to remove the need of virtual currency as told in a blog post. In 2009, Facebook had launched Facebook credits as one of its ambitious projects, where people could do transaction with virtual currency. Facebook credits act as a virtual currency that allows you to buy virtual pets, premium game weaponry, etc. in all your favorite Facebook games to make the experience more exciting.
To make this concept work, Facebook had tied up with players such as MOL, the leader in virtual currency for online games in India too. But things have not worked the way as it was thought and virtual currencies have failed to replace real currencies. So Facebook is removing the need for a platform-wide virtual currency and introducing the support of pricing in local currency such as US dollar, Indian rupee, etc. The new move that has been thought of will benefit Facebook’s global audience who can now perform transactions in their local currencies. The local pricing payment option will allow more granular and consistent prices for non-US users and it would also allow pricing the same item differently on a market-by-market basis.
In addition, Facebook has also assured that the transition will be seamless and additionally users who have credit balances will receive the equivalent amount of value in their local currency. To know more, you can always read the FAQ and sign up for the latest information.
Can this move benefit the Indian ecommerce?
Facebook being the largest social network in India, it is a natural call for businesses to open a Facebook page first for interacting with fans. The Indian ecommerce industry has done the same and it has also invested a lot on Facebook in terms of driving engagement. One of the reasons why Facebook Stores (which was termed as a failure) was launched, was to support the ecommerce businesses. Facebook wanted businesses to build their own store on Facebook so that fans wouldn’t leave it and do all their activity on Facebook itself. But one of the major reasons why Facebook Stores didn’t work was that it had to deal with Facebook Credits. In a country where online transactions are still not trusted, acceptance of Facebook Credits was bit of an ask. Besides this, other businesses used to lead fans to different payment gateways, thereby leaving the network when they were asked to make a payment.
But by introducing support for pricing in local currency, Facebook has brought good news for Indian ecommerce businesses. Apart from having a website, businesses can now display their stores on Facebook without getting into the hassles of payment since fans can easily transact in their local currency if they wish to. And if you don’t want to display your entire website, may be you can create a store that displays the latest collection along with the ones that have good deals. This will help fans to do the transaction in Facebook itself without leaving the network. In a nutshell, Facebook local currency will be a welcome move by ecommerce businesses and fans for its sheer convenience.
So do you think that Facebook will kill the need of having a website when you can have the complete experience on Facebook itself along with interacting with fans daily?