We’ve always assumed this rollout will be a death blow to other payments providers on the platforms, such as Zong and Social Gold.
Naturally, Social Gold CEO Vikas Gupta thinks we’re dead wrong.
He gave us three reasons why:
There’s no intermediate currency with Social Gold. When gamers use “Pay With Facebook” to buy virtual goods their money goes from cash to Facebook Credits to the game’s virtual currency. With Social Gold (and other independent providers), gamers’ money goes from cash to the game’s virtual currency. For developers, this keeps more of the money inside the game’s own economy.
Social Gold has a white label offering. Small developers who don’t have the resources to build a currency platform on top of their games, can licence one. This group will probably find it easier to accept payments via Social Gold.
Social Gold has an entirely in-Flash payments solution. Flash games lose a lot of paying customers — about 50% of them — when gamers have leave the game to go to an HTML page to put money into the system. Only 50% of them come back. Vikas says in-Flash payments provide a 30% to 50% revenue lift.
Here’s another reason Vikas didn’t mention: Facebook will charge 30%. Social Gold and its rivals charge <10%.