Facebook looks to boost payments revenue through new app store

Facebook: new app store
Facebook: new app store

Facebook is launching its first app store in a bid to create additional revenue streams through payments, as it admits that migration of its users to mobile may negatively affect revenues.

The 'App Centre' aims to showcase 'the best social apps' from across the web, such as Pinterest, Spotify and Draw Something.

It will also allow developers to charge for Facebook apps for the first time.

Consumers will need to use Facebook Credits to purchase the apps, meaning Facebook takes a 30% cut of revenue, as it does with in-app purchases, according to reports.

Writing on the company's developers' blog Aaron Brady, a Facebook engineer, said: "Many developers have been successful with in-app purchases, but to support more types of apps on Facebook.com, we will give developers the option to offer paid apps."

The store will roll out in the next few weeks and will be accessible via Facebook.com and mobile devices. Facebook is encouraging developers to start building their apps and app pages, where their app is listed straightaway.

According to Reuters, 200 of the Facebook apps already available have more than one million users. Facebook has a total of 900m users.

Facebook makes the majority of its revenues from advertising - a business model which has caused uncertainty among investors in the lead up to its IPO, especially after the social network recently saw its first quarter-on-quarter revenue drop in two years.

The app store announcement comes at the same time that Facebook, in an amended prospectus, filed with the Securities and Exchange Commission yesterday, listed mobile as a risk factor.

"Growth in use of Facebook through our mobile products, where our ability to monetize is unproven, as a substitute for use on personal computers, may negatively affect our revenue and financial results," the filing said.

Facebook kicked off its investors’ roadshow this week ahead of the IPO, which is expected to value the company at between $77bn to $96bn.

Follow Sarah Shearman on Twitter @Shearmans


Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message