How Facebook Credits could replace traditional banking

http://thefinanser.co.uk/fsclub/2011/07/why-zynga-means-we-dont-need-tomorrows-bank.html

This article, that defines Facebook’s 30% fee base as a restrictive practice from a monopolistic firm, is an interesting summary of what’s going on in the virtual currency world of Facebook.

According to its author, what makes Facebook credits big news is not the fact that FB takes a 30% cut of the credits used, or that earlier this month FB made mandatory to use their credits for any games or apps on Facebook; but that they could help Facebook become an ecosystem where people will go to stay, even threatening banks existence. “If Facebook gets its act together for using Credits for Commerce, then they could be bigger than PayPal and Google.” and “by 2020, Facebook – or it could be Google Circles or something else – will be the internet.”

Considering the increasing popularity of Facebook Credits, there is even a company that helps other companies to use Facebook credit to reward costumers (ifeelgood), and that Facebook has Payvment “the mall of the future” in its hands, to me it sounds reasonable to think that Facebook could become the future of e-commerce and Facebook Credits the universal currency.

What do you think? Do you agree with the statement that Facebook or any other social platform will be the place where people go and stay- that is it will become the Internet? Could this help FB stay leader in social media or do you see other platform dominating the e-commerce environment?

Valentina

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5 thoughts on “How Facebook Credits could replace traditional banking

  1. One universal currency is a cool concept to think about and facebook is certainly making a good move by opening up their own currency. Your mind can run wild with all the opportunities facebook has in front of them.
    I don’t think its realistic to think Facebook will be the internet in the future, but there certainly will be a social media influence on the internet that will only grow. I think major players will emerge from places like Asia and Europe in the global market and we’ll see positioning by the major players through mergers, acquisition, and joint ventures.
    I do think facebook will have a huge impact on e-commerce and it will be interesting to see what happens to the ebays and amazons of the world and how there busines might be affected by facebook.

  2. Personally, I’m reluctant to use Facebook credits for the security reasons stated in the blog before this one. Too much information about myself is revealed for marketing purposes. Replacing Facebook as a universal currency can lead to so many security issues. Plus, what about those who don’t have a Facebook account? There are many reasons not to use Facebook and creating a universal currency would force these individuals to sign up for Facebook. I think using a Facebook currency would make Facebook “too big too fail”, so using the lessons from the Banks, I don’t think Facebook will be able to acheive a single currency on its platform.

  3. In the traditional sense, I think it is safe to say that FB will never be able to replace traditional banking. I do not see any form of social media replacing traditional banking simply because the risk is too great. I also think that most, if not all people, who use social media would not think to use an online internet site to do their personal banking (i.e. internet sites such as facebook etc). The traditional approach to banking contradicts everything that social media professes and that is “connectedness.” All of us who use traditional banks (i.e. for privacy and security) will not compromise safety as well as confidentiality. Moreover, given the current state of the economy, this seems like the ultimate high risk move, of which the downside is irreversible. I also think that the idea of FB credits is intended for a niche market like gaming and I would find it very odd and almost unthinkable that the executive team at a company such as FB would even want to invite that sort of responsibility and scrutiny from third parties to be even more profitable.

  4. Personally, I don’t think Facebook Credits will be the next PayPal due to its track record with privacy. Facebook always seems to be changing its privacy policy which makes me hesitant to take over as my “banker”. My finances and what I choose to spend my money on are very personal. I want my financial transactions to go through a third-party that I trust won’t abuse that data or mysteriously change its privacy policy.

  5. Facebook credits are a disaster waiting to happen. While the firewall protection on Facebook is vast, it is still possible for hackers (like the pro’s at Anonymous) to gain a lot of valuable information on a user, including their credit card numbers. With one online currency, the idea of a mass credit scandal is very alarming.
    Facebook will certainly stay the most widely used social network on earth (especially with their impending introduction to China) however, they will not be the entire internet. Of note- Facebook has lost a great number of active users in the US in the past few months- http://www.seroundtable.com/facebook-marketshare-13554.html largely in part to the perceived personal security threat of the site.
    Hopefully it will also not become a global currency.. look at how well the Euro has been working out…

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