Micro-payments across the gaming world is gaining serious traction, especially on social networks. PlaySpan, which powers micro-payments across over 1,000 video games and virtual worlds, is launching marketplace storefronts for Facebook and MySpace (which will be rolled out soon). The marketplace will which let users purchase online game items, virtual goods, and game currencies for online games and applications directly from their social networks.
What makes the marketplace interesting is that you can buy, trade, and sell goods within the marketplaces on Facebook and MySpace and then use the items in online game environments. And making a transaction on the marketplace becomes a whole lot more social, as your friends may be able to see it on your NewsFeed. PlaySpan, which recently acquired micro-transaction app developer Spare Change, has processed more than $50 million worth of micro-transactions through its PayByCash and Ultimate Game Card products. PlaySpan also raised $16.8 million in a series B funding last Fall from Easton Capital Group, Menlo Ventures, Novel TMT Ventures, and STIC. The startup was founded by a 12-year-old, Arjun Mehta, but it is actually run by his father, CEO and co-founder Karl Mehta.
The recent acquisition of Spare Change now makes sense. While PlaySpan’s focus so far has been within games and virtual worlds, it made a recent deal to power micropayments on hi5. Spare Change, on the other hand, powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo, and at the time of its acquisition was on its way to processing $30 million worth of transactions this year.
It seems like these days everyone is getting into micropayments, and the number of players are scaling quickly. With continued expansion on social networks, startup PlaySpan can become a serious player in a space where bigger players like PayPal, Facebook and MySpace are all considering making a move. The competition may be stiff but as micropayments start to integrate with consumers’ social graphs, but there seems to be the potential for more than enough opportunity for both startups like PlaySpan and Zuora, and the more established players.
This is a great idea. I think it would be much easier to spread this around if you connect to more markets, and not just focusing on the big names. You can find other great apps here: http://AppUseful.com
The one who finds a nice/cool way of presenting/introducing the products/a market to the social media / networking sites will find a gold mine. I haven’t noticed these guys yet though….
Micropayments are clearly gaining momentum, but let’s remember that Spare Change isn’t the only option available for monetizing Facebook applications.
OneTouch Online Purchasing is creating a full service alternative payment system for Facebook. Find out more from here: http://www.onet...om/facebook.php
Before the powerhouses fb and myspace realize the real potential and rewards of micro payment they have to get the traction.
the best thing about spare change is that its so much easier to use than the other ones…
especially for teens (who probably end up spending more time on fb than others) its really convenient since there is no restriction to having a spare change account. right now i think it is the only one that also allows free exchange of credits among users as well.
i’m glad to see they launched this, especially to see more of the major apps start using it.
In terms of security it’s one big hole, wide open to everybody who would be willing to start stealing money.
dont follow, what security issues are there? all i see is a way for children to have gaming account balances to spend as they please—like at an online arcade with tokens to spend on any game.
The best micropayment platform is mobileguard.org, period! suuuper easy to implement.
The future of how traditional publishers can monetize their content on the web?
i wonder when there will be a virtual currency exchange market for social gold, facebook credits, spare change, playspan, zong, etc…….
i would like to tap into this market as a trader, just wondering if it violates SEC rules and would catch the attention of wall street.
not sure if such a thing is legal… since you are ‘creating’ a currency without having an actual country or state.
but it would be neat to see exchange rates and trading markets.