Facebook has decided to ween itself off of funny money, in exchange for real value pricing using local currency for each territory. The company promises that over the next few months, it will be transitioning from "Credits" to local currency payments. All apps and games that sell virtual items will be required to use real currency pricing by the end of the year.
The note on the developer blog says this is to "simplify the purchase experience" and "give developers more flexibility." It also points out that this will allow developers to set more granular prices and set prices differently in different territories.
Facebook is also offering a new subscription model, with plans to launch across Facebook.com and mobile apps in July. As you could probably guess, this will let developers use recurring monthly payments for "updated content or premium experiences." Currently Zynga and KIXEYE are testing the subscription model now.
A statement by analyst firm Robert W. Baird & Co. Incorporated calls the move "neutral to positive" for the company. "We believe upcoming changes to Facebook's payment platform reflect the company's adaptability, and recognition that Facebook Credits did not meet its goal of becoming the de facto virtual currency for in-app transactions," the statement read.
Steve Watts posted a new article, Facebook nixing credits for in-app purchases.
Facebook has announced that it is trading in its Credits for real local currency values, and expects all developers to follow suit by the end of the year. It also announced plans to launch a subscription model in July.