Research Shows Facebook Credits Offer Best Payment Option for Media Content Vendors
Research by Global Intelligence Alliance (GIA), a strategic market intelligence and advisory group, suggests that Facebook Credits offer the best social payment solution for media content vendors to date. Social media and game developers do not find alternative payment options very attractive - even though some third-party developers have been reported as being “underwhelmed” by lower than expected conversion rates to Facebook Credits. [Inside Social Apps 2012 conference]
In late 2011, GIA interviewed 10 large social media and game developers in the US, Europe and Asia. The developers involved in the research cater to global subscriber bases ranging in size from 3.5 million to over US$200 million.
The social media and games developers said that most payment options available are unsatisfactory in handling microtransactions on social media or games.
They said that mobile phone operators take too long to process payments, sometimes with a delay of up to two months. In spite of their proven reliability, credit card payments were not always practical for customers with privacy concerns or those without credit card accounts. Global banks, they said, offer the experience in data security, risk management and customer data mining as well as large pools of customers that they would find attractive. However, they also said that they hesitate to work solely with banks because they are perceived as slow, lacking in understanding of online user behavior and trends, too local and lacking in solutions. Social media and game developers said that banks simply haven’t taken the time to understand the market.
Overall, the research showed that social network payment systems should be global and easy to integrate into game or social media platforms. These solutions should provide a low threshold of entry for new end-users, offer chargeback capabilities, and be generic enough so that future services are easy to implement. They must have the ability to handle micro-transactions in large numbers, payments that bypass the need to set up credit card or bank accounts, and simpler one-click payment on mobile devices.
Facebook Credits addresses these concerns by offering a universal platform where virtual and digital goods can be purchased through a variety of channels; including PayPal, mobile phones, banks, credit cards, cash cards and convenience stores in some countries. Such diverse and more locally relevant payment options make them very attractive to adopt. Plus, Facebook offers social networking capabilities that one may not find on traditional e-commerce sites.
For other information, visit the www.globalintelligence.com or send an email to media(a)globalintelligence.com.
Global Intelligence Alliance (GIA) is a strategic market intelligence and advisory group. GIA was formed in 1995 when a team of market intelligence specialists, management consultants, industry analysts and technology experts came together to build a powerful suite of customized solutions ranging from outsourced market monitoring services and software, to strategic analysis and advisory.
Today, we are the preferred partner for organizations seeking to understand, compete and grow in international markets. Our industry expertise and coverage of over 100 countries enables our customers to make better informed decisions worldwide.www.globalintelligence.com