Digital Currency is always a risk for some merchants and retailers which do businesses online and some of them are really afraid to use digital currency in buying and selling. As we know Facebook is also offering its digital currency as named Facebook Credits for buying and selling on Facebook online and some merchants and retailer are also offering products and services through Facebook Credits. Facebook's digital currency is new for many of Facebook users and they don’t even know how to perfectly utilize Facebook Credits for purchasing and selling on Facebook. So today we are going to discuss some Advantages and Disadvantages of Facebook Credits for Merchants and Retailers who use Facebook Credits for buying and selling.
According to Milyoni a commerce vendor said that there are several Goods and Bads of Facebook Credits and Digital Currencies and he has also mentioned the Pros and Cons of Digital Currency here.
Advantages of Facebook Credits for Merchants:
- Access to a marketplace of nearly one billion users;
- Simplified approach to purchasing virtual and digital goods;
- Consolidation of virtual currencies across multiple providers;
- Secure payment and billing environment;
- Available in 47 currencies;
- Ability to purchase and gift Facebook Credits in many ways (credit card, PayPal, mobile, retail stores);
- Growing base of merchants that reward customer loyalty and buying with credits;
- Effective mechanism to convert fans into paying customers of premium or exclusive services; and
- Facebook Credit distribution can be a low cost promotional effort to increase brand awareness or customer conversions.
Disadvantages of Facebook Credits for Merchants:
- The 30 percent transaction rate is more than many merchants and content providers are willing to accept until the market demonstrates a return on investment;
- Facebook is introducing several changes, such as timeline and newsfeed advertising, which some users are finding too invasive, possibly causing them to exit the platform;
- Charging 50 Facebook Credits for digital goods is prohibitive in some countries;
- Any breach in privacy or security, given the media’s willingness to hyper-cover these issues involving Facebook, could create major resistance to using the social network for commerce; and
- The novelty and enjoyment of Facebook may diminish as users turn to other social networks, like Pinterest or Twitter, to satisfy their needs.