The end of Facebook Credits revisited: the effect on TrialPay
Earlier this month, Facebook announced that it would be officially ending Facebook Payments on September 12. Instead, Facebook will begin using the local currency payments application programming interface (API), making in-app purchases a simpler experience for users.
Though the social network has said that it would be depreciating Facebook-sponsored support for e-commerce payment system, TrialPay offers can still be a viable option for developers interested in utilizing offer walls. Developers must now make direct calls to TrialPay to access offers. Many developers already use this today, but the September deadline will force them to shift toward this option.
TrialPay Offers help brands and developers sell virtual goods in accompaniment with physical goods. For example, with TrialPay, one user purchased a trip to Disneyland Paris for a family vacation in exchange for Facebook Credits. So for social game players who may not be warm to the idea of making in-app purchases, they might be more likely to make a purchase if the offer is enticing enough.
Despite this depreciation, and Facebook no longer supporting Credits, revenue collected from offer completions was 5 to 10 percent of total game revenue. Of this, 55 percent use in game ads to promote transactions and 45 percent spend on offer wall placement. TrialPay has also shared that around 5 percent of players were motivated to spend money in a game by an offer and that it also helps to on-board 5 percent of new payers.
With 95 percent of purchases happening offline, TrialPay has also introduced in-store offers which can provide users with the chance to purchase something in store and then receive virtual goods in their application. This is particularly powerful to users because it helps encourage users to spend more, but with tangible goods. TrialPay co-founder Terry Angelos has provided some examples such as a user from New York purchasing a $1,100 new Mac for his wife to get credit for the World Golf Tour.
Some additional statistics on TrialPay’s in-store offers include:
- 80 percent planned to shop at that store in the future after completing the offer
- 50 percent said they would return within 3 months
- Customers spend an average of 1.5-2x the required minimum
Facebook offers done through TrialPay are still a valuable tool for Facebook apps and businesses that are familiar with the utility. These users behaviors speak on how offers can be used to reward users that are interested in games. While Facebook Credits may be dying, customers willing to spend money on virtual goods is not going anywhere.