Facebook has its own payment system for games and apps on its social network, called Facebook Credits, and now it would appear that the new Facebook iPad app won’t use Facebook Credits for purchases. Instead, it will use Apple’s in-app purchases.
Users of the Facebook iPad app who want to purchase Facebook games and apps will have to make their purchases via Apple’s in-app purchasing, just like any other app.
Impact on Revenue Sharing
This means that Apple will take a 30 percent cut of all in-app purchases made by the Facebook App, unless the two companies have come to some sort of different deal behind the scenes. Facebook currently pays developers 70% of the revenue for apps and games that are purchased through the Facebook credit system. This shift to Apple’s in-app purchase system could potentially impact the revenue distribution for developers who rely on Facebook’s platform.
For instance, if a game developer earns $10,000 through in-app purchases on the Facebook iPad app, Apple would take $3,000 as its cut, leaving $7,000 for the developer. This is a significant change from the Facebook Credits system, where developers would have received the full $7,000 without any additional cuts from Apple.
Strategic Implications
The decision to use Apple’s in-app purchasing system could be seen as a strategic move by Facebook to align more closely with Apple’s ecosystem. By integrating with Apple’s payment system, Facebook may be aiming to provide a more seamless user experience for iPad users, who are already accustomed to making in-app purchases through Apple’s platform.
However, this move could also be seen as a concession to Apple’s dominance in the app marketplace. Apple has strict guidelines and a well-established payment system that many app developers are required to follow. By adopting Apple’s in-app purchases, Facebook is essentially acknowledging Apple’s control over the iOS ecosystem.
Moreover, this decision could have broader implications for other social media platforms and app developers. If Facebook, one of the largest social networks in the world, is willing to adopt Apple’s payment system, it could set a precedent for other companies to follow suit. This could further solidify Apple’s position as a gatekeeper in the app marketplace.
Additionally, this change might influence user behavior. Users who are already familiar with Apple’s in-app purchase system may find it more convenient to make purchases within the Facebook iPad app. This could potentially lead to an increase in in-app purchases, benefiting both Facebook and Apple in the long run.
Source Geek Wire
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