Facebook Credits: The Real Deal
The Virtual Is Real(TVIR) has been a recurring theme here on the MJ for years. Earlier this month, Forbes Contributor Venessa Miemis made a strong case for TVIR in The Bank of Facebook. Today, as the web is abuzz with the launch of Facebook Deals more and more people are seeing how significant a role virtual currency has begun to play:
Facebook Credits: Tonight's reports say you'll be able to buy Deals with Facebook Credits! They will be the first real-world, non-virtual goods that will be available for purchase with this new currency. Kids are going to burn through this stuff like there's no tomorrow. Load up with Credits with the intention of giving it to Zynga for Cityville crap and end up spending it at The Gap instead. Or vice-versa. When beloved national retailers start offering goods and lower prices to customers who pay with a new, virtual currency - that's when said virtual currency becomes a force to reckon with. Somebody call Congress and the Federal Reserve - it's time to start having some serious conversations. Update: Facebook PR contacted us and said that at launch, you will not be able to buy physical goods with Facebook Credits. Rather you will be able to get things like vouchers that you can redeem at events.
Perhaps most importantly, users will be able to buy Deals using Facebook Credits, paving a smooth path between a virtual currency and real-world goods and services.
Deals also puts Facebook on a collision path with Groupon and Living Social, in social commerce space, and with Google in advertisement space and income. Although it will be very hard for Facebook to compete with market leader Groupon, but when it comes to social network, it has one huge advantage: 600 million+ users.
Important: Facebook/Social commerce has the potential to shift several business models. For example, Retail banking with augmented realty- How about a bank branch inside FACEBOOK? This is not a remote possibility, especially when we already have bank branches inside Wal-Mart’s and TESCO's. Any Peer2Peer or Mobile Service provider can offer all these banking services at the place and time of customers preference. It is important to understand that the definition of banking is changing. In an interesting way, you do not need a bank license to participate in the banking industry
