Facebook Doesn’t Bank on Mobile, Settles for 9% Decline on Payments Revenue

Facebook Doesn’t Bank on Mobile, Settles for 9% Decline on Payments Revenue

Facebook’s Payments Revenue Feels Some Heat, Declines 9% From Last Quarter

The payments and fees revenues of Facebook have declined from $192 million to $176 million over a quarter, which is about 9%, due to the shift of the social gaming industry to mobile devices.

Facebook’s Payments Revenue Feels Some Heat, Declines 9% From Last QuarterAlthough the company may have increased 13% year after year in payment revenues, it cannot be denied that the company has suffered over the first half of the year.

Facebook claims that a rebound is possible this quarter due to the changes how the company analyzes revenues from payments. Before, consumers had a month-long period in order for them to dispute charges before being recorded. The company will now record payments revenue immediately starting this quarter, making an artificial bump.

Since gamers are now transitioning towards mobile devices, Facebook does not earn as much as Google and Apple for the Android and iOS platforms. Thus, they make use of mobile app install ads to earn an indirect share of revenue.

Also, third party developers have limited growth due to Facebook’s reduction of spammer game types on the platform. Facebook has also helped out mid-core developers by favouring long-term games.

Because of this, the payment revenues of Facebook have been constantly sluggish for a number of quarters and the decline is not surprising.

Key Stats

  • Facebook’s payments revenue declined from $192 million to $176 million
  • In percentage, that equates to a 9% decline
  • Overall payment revenues year on year increased by 13%

Sourcetechcrunch.com

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