Facebook to allow users to pay in local currencies soon

Facebook will soon allow users worldwide to pay in their local currencies for various paid applications and games on the popular social networking site, a move that would help it in diversifying revenue streams.

"...We are updating our payments product to support pricing in local currency (ex: US dollar, British pound and Japanese yen) instead of Credits," Facebook said on its website.

"By supporting pricing in local currency, we hope to simplify the purchase experience, give you more flexibility, and make it easier to reach a global audience of Facebook users who want a way to pay for your apps and games in their local currency," it added.

In 2009, Facebook, introduced a payment system 'Facebook Credits' or a virtual currency was mainly used to buy virtual goods in games like FarmVille. Last year, 15 million users bought virtual goods on the site using its payments service.

"We will release local currency support for in-app payments in the next few months. Any apps or games that sell virtual items will be required to use local currency by the end of the year," the company said.

Facebook, which generates most of its revenues from advertising operations, has been focusing to strengthen its non-advertising business.

In the first quarter of this year, Facebook saw revenue from 'Payments and other fees' rise 98 per cent to USD 186 million, while advertising revenue climbed 37 per cent to USD 872 million.

In addition to changing currency, developers would begin charging users on a subscription basis starting next month.

"Beginning in July, we are launching subscriptions as another way for you to build your businesses on Facebook. With subscriptions, you can establish a recurring revenue stream and offer updated content or premium experiences for a monthly fee," Facebook said.