Facebook anounces Facebook Payments to challenge Google, PayPal, and others


It was a very silent announcement by Facebook when they dropped the Facebook Credit service. This was dropped for promotion of local currency based pricing.  The official notice, as mentioned on their official developer blog, says that Facebook is ready for taking on all other payments providers inckuding PayPal, Google Wallet, and,even Apple’s iTunes.
The co-founder of  Plink, Peter Vogel has argued about it on an editorial on Techcrunch last week. And, he also mentioned that Facebook can become a super dominant player in the online payments arena, much similar to a PayPal.
I clearly remember that Dave McClure on his Typepad blog predicted about this way back in 2010.
In fact, it was around september last year, that I saw many a  rumors that Facebook is coming with a “wallet” like payment service. It was much before the launch of Facebook Credits platform which will now be a fully localized standard-currency based payments platform.
Here is the official Text from Facebook:

We really hope to simplify the purchase experience with it, and give you more flexibility in all manner, and also make it easier to reach yet more global audience of Facebook users who want a way to pay for your apps and games in their local currency.
With local pricing, you will be able to set more granular and consistent prices for non-US users and price the same item differently on a market-by-market basis.

I liked the reason because earlier 10 facebook credits costed around $1 for US residents and it was around 55 bucks for Indian. So now, such costs will be equalised and this introduction of local currency pricing will surely reduce this difference and discrepancy.

I hope this goes well for Facebook and they gain a big time with it.