Facebook IPO Filing Shows Details of Its Payments Business

Print
Email
Reprints
Comment
Twitter
LinkedIn
Facebook
Google+

Facebook Inc. generated about $557 million in revenue from its payments business last year, according to its S-1 filing.

The social networking giant filed its Initial Public Offering this week. In its filing, the company finally made clear to outsiders how relevant its payment business is to its overall 2011 revenue of $3.7 billion. The remainder of its revenue comes from advertising.

Its revenue from payments and fees dramatically increased to $106 million in 2010 from $13 million in 2009. The company's digital currency, Facebook Credits, became mandatory in July, 2011, for nearly all game developers accepting payments at the social networking site, according to the filing.

Facebook also gave potential investors details on its partnership with Zynga Inc., the social game developer behind the hit Facebook game FarmVille. Zynga has entered its own pacts with financial services companies, such as Discover Financial Services.

In an agreement that ends May 2015, Facebook retains "up to 30% of the face value of user purchases in Zynga's games on the Facebook Platform," Facebook said in its filing.

JOIN THE DISCUSSION

SEE MORE IN

RELATED TAGS

'We Don't Want to Wage this Proxy Contest in the Gutter': Week's Best Quotes

The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.

(Image: Fotolia)

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

The FinTech 100

FIS and Tata once again top the annual FinTech 100 list of vendors, ranked by revenue; IBM and Hewlett-Packard lead the pack of tech companies serving multiple industries; and Bionym and Silver Tail are among the 10 Tech Companies to Watch.
DAILY ENEWSLETTER UPDATE

A Newsletter featuring Bank Technology News' top stories plus special reports and data

This feature displays payments industry news and analysis from American Banker sibling brand PaymentsSource. Registration is required; for more information contact customer service.

TWITTER
FACEBOOK
LINKEDIN
Already a subscriber? Log in here
Please note you must now log in with your email address and password.