Facebook IPO Reveals Skyrocketing Payments Revenue
In the social media giant’s IPO filing this week, Facebook has booked a rapid increase in revenues derived from payment activity, according to a report by Finextra.
In 2010, payments contributed only $106 million to Facebook’s overall revenues of $1.97 billion. However in 2011 Facebook, through its relationship with Zynga, revved up payments revenue to $557 million.
“Payments integration is currently required in apps on Facebook that are categorized as games, and we may seek to extend the use of payments to other types of apps in the future,” the company stated in its filing notes.
Facebook further noted: “Our future revenue from payments will depend on many factors, including our success in enabling platform developers to build experiences that engage users and create user demand for their products, and the fee arrangements we are able to negotiate in the future.”
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To think that Facebook is not planning to have its own payments system might be the equivalent of thinking that non-banks would never take a share of the payments business back when PayPal and Boku, etc. first appeared. The evidence is pretty clear - from Facebook's taking out state money transfer agent licenses to it's recent acquisition of Dwolla. Dwolla's founder will be speaking at BAI Payments Connect in March in Las Vegas and should be interesting to hear on this subject.
Posted by george warfel, 06/02/2012 1:02pm (3 months ago)
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