Spend Real Money on…Fake Money?

TakeAway: Starting September 5, Target will offer Facebook Credits gift cards. 

With 500 million members, Facebook expects many to purchase the cards and use them on their favorite social games, applications and virtual goods. 

Target jumped on board, expecting the markets for online gaming and digital music to continue to grow.  For some potential cross-promotion, Target also has more than 1.5 million fans on its Facebook page.

What ever happened to good old conversation or handwritten letters, anyway?

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Excerpted from USA Today, “Target to sell Facebook Credits gift cards” By Jon Swartz, September 2, 2010

The new Facebook gift cards will be available in values of $15, $25 and $50 at all of Target’s 1,750 retail stores and at Target.com. Two or three more national retailers will start selling the cards in coming months.

This will be the first time Facebook has had any presence in a retail store. Facebook already has an arrangement with online-payment services PayPal and MOL to purchase Facebook Credits.

More than 200 million people play free social games on Facebook each month, according to Facebook. And many of them are beginning to spend money on premium goods and services associated with those games.  By year’s end, Facebook expects to have gift card credits available for its thousands of games. At least 19 games on Facebook have more than 10 million active users a month.

 Facebook’s entry into the growing prepaid gift card market could prove lucrative. The domestic prepaid gift card market is expected to reach $86.2billion this year, compared with $80.6billion in 2009, according to Mercator Advisory Group.

Edit by AMW

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Full Article:
http://www.usatoday.com/tech/news/2010-09-01-target01_ST_N.htm

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