Facebook abandons Credits, allows app developers to charge monthly fees

Facebook recently made some significant changes to the way it approaches in-app payments, as it has killed off Facebook Credits and has enabled apps to charge recurring monthly fees. Facebook first introduced Facebook Credits in early 2011 as a universal currency across all of its apps and games. According to the company, many apps have instead implemented their own forms of virtual currency, so it has chosen to abandon Credits in favor of supporting local currencies like the U.S. dollar, the British pound, and the Japanese yen. Facebook claims that the transition will remain seamless for existing users, as all Credits and unredeemed gift cards will automatically convert to the appropriate currency. In addition, Facebook also announced that in July, it will enable developers to charge monthly fees on their Facebook apps, allowing them to gain an additional revenue stream on top of the existing in-app purchase model. The subscription functionality is planned to debut in full next month, though Facebook noted that game developers like Zynga and Kixeye are already testing the new feature. For more information on these new monetization changes, check out Facebook's official developer blog. Gamasutra contacted Zynga to get its thoughts on the decision to abandon Facebook Credits, and a company spokesperson told us, "Zynga supports any improvement to the Facebook platform and player experience that makes it easier to play and pay. We’re proud of the long term partnership we have with Facebook and today’s announcement doesn't change the economic relationship between the two companies."