Facebook (FB) announced on Tuesday that it will allow global users on the social networking site to pay in local currency, which means that the Facebook has partially abandoned the payment system Credits which was announced last year.
Facebook said on its Web site on Tuesday, local monetary payments will be more conducive to the developers, which are affected in the regions without US dollar payment system.
Starting from next month, developers will charge fees from the users monthly. Facebook says this will create a circular source of incomes for developers and users can update content or gain senior experience through the monthly fees. Facebook’s action is to enhance relatively small but important payment business. Facebook is currently ruled by the online advertising business.
Monthly fee model also provides recycled sources of revenues for Facebook, because the company will get 30% of the revenues generated from games and applications.
Facebook said 5 million users bought virtual products through its online payment service last year. For the first quarter of this year, Facebook grew revenues from payments and other expenses by 98% to $186 million,and advertising revenues by $37% to $872 million.
Since the Facebook IPO last month, the outlook for Facebook’s financial situation has been closely watched by investors. Facebook stock price has risen for the fourth consecutive day, with a gain of 1.60%, or $0.50, to close at $31.91 per share on Tuesday, but still far below the Facebook IPO price of $38 per share.