Facebook to Handle Application Payments

JCBarry

Facebook was reluctant to setup a payment platform in the past due to security, resources, and third-party competitors.  However, that’s all out the window and they have got their sights set on the big bucks now that they’ve teamed up with Zynga, makers of Farmville and Mafia Wars.

Zynga’s games have hooked over 75 million monthly active users, with a third of those people online harvesting or “pulling jobs” on a daily basis. Facebook’s plan is to pull a 30% fee off every transaction made using the Facebook payment structure. The virtual goods market in the US alone is forecasted to reach $1.6 billion dollars in 2010. $835 million of that comes from social gaming products, such as those developed by Zynga.

It is unlikely Facebook needed another revenue stream, but they aren’t going to ignore the low hanging fruit dangling from the social gaming money tree.

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