Friday, July 9, 2010
Facebook Looks To Alternative Payments for Selling Credits
Realizing that the Southeast Asian market (including the Philippines) has severely low penetration of credit cards and has higher incidence of fraud, social networking giant Facebook resorted to alternative payments to make its online currency, Facebook Credits, available in this part of the world. This validates the rationale behind the business model of Dragonpay Online Payment System.
While the MOL model described in the Facebook article from Mashable mainly resorted to prepaid cards, over-the-counter bank deposits are just as convenient. They will most likely be more affordable to the merchant also because the prepaid card distribution industry in the Philippines, in particular, demands a large piece of the pie in terms of commissions.
Dragonpay aims to pursue both over-the-counter bank payment and over-the-counter non-traditional brick-and-mortar outlets (convenience stores, pawnshops, business centers) as payment channels to give the widest and most affordable payment options to the mass market.