Credits, the official virtual currency on Facebook, enables the purchase of gifts and virtual goods for games and applications on Facebook platform. Popular games like Farmville, Millionaire City, Hotel City, Petville, Bejeweled Blitz, Hotel City, Barn Buddy, Likeness and hundreds other games and applications are already accepting Facebook Credits (up-to-date list of games here). There are over 200 million unique Facebook users playing games each month. Soon, these social gamers can buy Credits using MOLPoints. And they can reload the MOLPoints through MOL’s network of over 500,000 physical (e.g. 7-Eleven, cybercafes, bookstores), online banking and mobile payment channels, in over 80 countries.

“The relationship with Facebook demonstrates MOL’s growing role as a leading payment provider for social networking sites in Asia, especially in our core countries of Malaysia, Singapore, Indonesia, Philippines, Thailand and India,” said Ganesh Kumar Bangah, group chief executive officer for MOL Global.

He added, “Over the last few quarters, we have seen a double-digit increase in payment transactions and payment volume. This partnership continues MOL’s momentum to build the largest end-to-end content, distribution and commerce network in Asia.”

According to Vaughan Smith, director of business and corporate development at Facebook, “working with MOL means we can offer the benefits of Facebook Credits to millions of people in Asia using a payment system that is already widely used and trusted. We’re investing in the long-term future of Facebook Credits and we view this agreement as a major opportunity to broaden the availability of a simple, unified currency that can be used in games and applications across Facebook.”

Currently, Facebook users can purchase Facebook Credits using credit cards and Paypal. However, they can also earn Credits via other means, such as drinking a Slurpee.

In Asia, the availability of physical channels to pay for Credits can further spur the virtual goods economy on Facebook. The 18-to-24 is the largest age group in most Asian countries – Indonesia, Philippines, India, Malaysia, Thailand, Vietnam among others. Many in the age group don’t own a credit card. Also, Asian gamers are spending big money and today, the virtual goods market in Asia is worth $7 billion!

UPDATES
(1) Signing of strategic partnership between MOL Global and Facebook

(2) Official press release

Coming soon: Facebook Credits available at retail stores in Asia originally appeared on GreyReview on July 8, 2010.

Why buy Friendster? According to the new MOL/Friendster Group CEO Ganesh Kumar Bangah, it’s because of its “strong South East Asia base… very focus, has a very strong following in Malaysia.” He believed “right localization,” in terms of features, contents and applications, is Friendster’s competitive strategy. Ultimately, he envisioned Friendster as South East Asia-centric community, a platform for Asian-ized contents and applications.

He also mentioned about his intention to purchase Friendster way back in 2007 but was not taken seriously by some of shareholders of the social network. When Richard Kimber became the CEO of Friendster, MOL started to establish commercial relationships with Friendster. “After a while, when we look into how we can have a deeper relationships, and that culminated into today’s MOL buying Friendster,” said CEO Bangah.

To remain competitive, Friendster already launched (or going to launch) these features on its social network:

• Microtransactions or sales of virtual goods, are particularly popular and widely adopted by the Korean (Cyworld) and Chinese (QQ.com) social networks. Friendster already launched its Wallet and Gift Shop. With microtransactions, is Friendster is merely trying to milk an aging cow?
• Social gaming: Facebook and MySpace are already the two popular social gaming platforms. Electronic Arts recent purchase of social gaming company, Playfish, in a deal worth US$400 million, underscored the upside of this segment. Friendster will soon join the party.
• Music: MySpace is still the king of the hill, when it comes to music. It is still THE preferred social network for music bands. Friendster too is eyeing to enter this space. (This is no surprise, considering Friendster’s Head of Asia, Ian Stewart is formerly from MTV).

Friendster (and other social networks) can no longer compete with Faceboook, on scale and scope. So, MySpace is carving its niche along area of interest, which is music; whereas Friendster along regional lines. The new Friendster’s goal is to be the favorite social network for youth in South East Asia through fun, simplicity and local knowledge.

Below is the full speech made by Group CEO Ganesh Kumar Bangah at a Friendster’s event last night.

To Revitalize Friendster, Just Blend Together Microtransactions, Social Games, Music and a Fair Dose of Luck originally appeared on GreyReview on December 11, 2009.