Facebook to Standardize Payment System

NEW YORK ( TheStreet) -- Facebook announced Monday that it is making Facebook Credits the standard payment system for all games across the platform beginning on July 1. The credits allow users to purchase virtual goods within games and apps on the social networking site.

With Credits, Facebook takes a 30% cut of each transaction from developers.

While some game developers have their own currency payment methods, most large app companies already use Facebook Credits. Zynga, the maker of the ubiquitous Farmville game, had its own system and fought with Facebook in May over the percentage demanded by the social networking giant. The two parties ended up signing a five-year agreement to promote Facebook Credits, although Zynga reportedly received a discount in the amount it has to pay.

During the Facebook Credits test period, more than 150 developers used Credits in 350 applications, representing 70% of all virtual goods transactions on the platform, according to a company spokesperson.

The virtual goods market is expected to reach $2.1 billion this year, according to Inside Network.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to http://twitter.com/Ozoran.

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