Action AllStars Membership Plans

PG likes this professional sports themed concept kiddie virtual world Action AllStars http://www.actionallstars.com/reg/membership.jsp But if the point is to drive kids nd famillies to watch and even attend major league sports games, why can't I use my Red Sox Season's pass or redeemed Laker's ticket as a way to get a membership? So if PG and family go to a ball game or we have seasons tickets, why can't we use our proof of pass or even the tickets we used to go to 1 game (normally $50 usd for cheap seats anywhere) as payment for Action AllStars?

Get it MLB.COM? Here is a review of the site http://www.commonsensemedia.org/website-reviews/action-allstars

Disnery Puts $100,000,000 in Kiddie Virtual Worlds

Disney is creating up to 10 different virtual worlds at a cost ranging between $5 and $10 million a piece according to the New York Times. The article is an otherwise solid round up of existing children's worlds and plans, including Nickelodeon's plans to invest $100 million to create virtual worlds and casual games. In a recent keynote, Disney's Bob Iger pointed out that the upcoming Cars virtual world would cost millions, not hundreds of millions to develop, because it is built on an existing infrastructure. That builds on Disney's plans to work with children's changing habits to keep the company's virtual worlds from becoming a fad. “Are features like creating an avatar a long-term advantage for anyone? Probably not,” Paul Yanover told the Times. “The viability and sustainability of this business comes from the shifting behavior of kids and how they spend their leisure time.” [via New York Times http://www.nytimes.com/2007/12/31/business/31virtual.html?em&ex=1199336400&en=068e5e1dad982be3&ei=5087%0A

How Many Kiddie / Teen Virtual Worlds Are there?

Over 200+ http://www.engagedigitalmedia.com/research/2009/youth-01-26-2009.html
which doubles http://www.massively.com/2008/04/14/kiddie-virtual-worlds-top-the-century-mark/

Vector City Racers Family Subscription Plans Are Very Smart

Cityracers Vector Entertainment just launched its online car racing world Vector City Racers (VCR). In beta for almost a year, and with launch delayed by litigation from Ganz Interactive (Webkinz World) http://paymentguy.blogspot.com/2009/02/webkinz-sues-webcars.html there are now 290,000 player registrations and typically draws 15,000 daily unique visitors http://www.virtualworldsnews.com/2009/10/vector-city-racers-launches.html. PG LOVES their subscription pricing model of 4 membership plans, especially the Family Monthly and Annual: Monthly ($4.95), Annual ($49.95), Family Monthly: ($9.95), and Family Annual ($99.00). Very smart! But their payment pages need a lot of work http://www.vectorcityracers.com/pages/parent/ParentsPricingMembershipPage
They also have a Facebook App that is pretty cool. Check this other review; http://www.familygameronline.com/2009/10/vector-city-racers-now-available-new.html
If I were these guys, I would try and do a deal with NASCAR or F1 even so every family / kid that shows proof of a NASCAR ticket gets a free membership.

The concept can be copied to other virtual worlds with advertising or co-marketing deals where a kid shows proof of purchase of a real life item (ie a receipt) and then uses this as a way to gain a membership, credits or other virual good from the participating virtual world publisher (eg stardoll users show H&M merchandise purchases as a way to get virtual items or memberships ...).

Giveaway Intro Subscriptions ...

To hook new users. PG has always wondered why he has never seen a virtual world operator or mmo's place free intro memberships in freebee newspapers like METRO as a way to boost registrations ... anyone ever seen this done?

Forget Micropayments - Get Them to Subscribe!!!

Same applies with Virtual Worlds; "Convince someone to take a subscription, and the revenue flows in for months to come. “It is amazing how inertia takes over,” says Peter S. Fader, a marketing professor at the University of Pennsylvania. Anyone who has signed up for a gym membership that is paid for but not used understands the genius behind subscriptions." http://www.nytimes.com/2009/10/11/business/11every.html?hpw

Card Fraud Up 40% in Finland

Can't blame it all on the Estonians ... http://www.hs.fi/english/article/Credit+card+and+debit+card+frauds+a+growing+problem+/1135249892004
Interestingly, PG finds that these days the Estonians are more Finnish than the Finns being a)often more honest and trust-worthy, b) often more hardworking, c) often more reliable, d) often more sober, and e) often blonder ;)

(Woot Carmen!)

The Right Payment Method Mix

PG gets asked this question a lot: "What payment methods do I need?" So Dear Readers, be advised any and every successful payment network requires at least 3 payment methods from the following categories;

1. Online - e.g. credit cards;

2. Offline - e.g. prepaid cards; and

3. Telco - e.g. premium sms.

The Facebook Payment Guy - Part Deux

So what has Gareth Davis (or is it Davies?) been up to tapping into this massive payment opportunity since PG last outed him http://images.google.com/imgres?imgurl=http://1.bp.blogspot.com/_1FRY654d-9w/Slmk4D2tB-I/AAAAAAAAB-I/xUWX_xB-hGI/s320/gareth-davis-february-09.jpg&imgrefurl=http://paymentguy.blogspot.com/&usg=__31c5FMWMo_OyVffvOA0yIpDre1Q=&h=303&w=320&sz=11&hl=en&start=7&sig2=KHhX2F-PgGzPsB5C9BWmrA&um=1&tbnid=I8H3cbsPEHN-zM:&tbnh=112&tbnw=118&prev=/images%3Fq%3Dgareth%2Bdavies%2Bfacebook%26hl%3Den%26um%3D1&ei=sAPPSq3FKovu-QbtkemMAw and since http://www.americanbanker.com/issues/174_133/-384263-1.html and since http://www.javelinstrategy.com/2009/07/07/facebook-payments-system-facing-uncertain-demand/
and since http://games.venturebeat.com/2009/02/13/gamesbeat-09-preview-an-interview-with-facebooks-top-gaming-dude/
Not a whole lot that PG can tell. Anyone know anything?

Wither Twitter Pay?

We all know, well at least those 5% of the population able to take care of themselves as Governator opines http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x317064, Twitter makes you stupid http://www.psychologytoday.com/blog/the-playing-field/200905/how-twitter-makes-you-stupid Not only that, but PG has noticed the massive popularity of Twitter has dramatically reduced the number, scope and amount of blogs, blog posts and all things blogging. This is a good thing. Most of those who used to blog about all and any thing mundane, trivial or specifically captivating to their own lives are now Twittering.
Famous Twits like Peter and Jordon, or Ashton and Demi now no longer have to blog from their PC with their agents - they can now Twit away anywhere and about anything via their mobile (this is Bruce's boat by the way ... believe it - he always seems to be straining himself with some macho man physical exertions while Ashton seems chill contented and totally relaxed, wonder why??? ;) Truly HOLLYWEIRD!).

PG for one would love it if Oprah herself and her Cult would move exclusively from TV to Twitter. Only true visionary experts should blog, like PG. The rest should Twitter. So what does Twitter have to do with payments? That is the point of this post. Twitter could have the worlds largest mobile commerce infrastructure within days All it needs is X.Y.Z. Farber is onto something here http://news.cnet.com/8301-13953_3-9946150-80.html But Twitter itself does not seem to realize the enormous potential it has to become the largest micropayment network on EARTH. All it needs are 3 things;

1. A virtual currency (let's call them TWIT's shall we?)
;

2. A virtual currency exchange system (where the users can trade, cash in, exchange or convert) Twitter's virtual currency; and

3. A mobile payment application to do this via secure text sms.

VOILA! Now why has some smart Twitter/Hi5/MySpace/Facebook/Payment application provider not done this yet? Why has OBOPAY not partnered with Twitter ? Or why has Twitter not copied OBOPAY?

PG: PS TWITTERPAY.COM is already take by a shrewd Dutch guy who may or may not have Twitter Micropayment Platform plans or who may or may not be just a good domain hunter and squatter http://who.godaddy.com/WhoIs.aspx?domain=twitterpay.com&prog_id=godaddy
Registrant:
Guardio
Johannes Verhulstraat 60
Amsterdam, NH 1053HJ
NL


Registrar: 000DOM
Domain Name: TWITTERPAY.COM
Created on: 02-JUL-08
Expires on: 02-JUL-10
Last Updated on: 02-JUL-08

Why Sulake Loses Money

Since Sulake, publishers of HABBO and developers of IRC Galleria announced its modest profit of approx 1 million euro http://www.arcticstartup.com/2009/10/05/sulake-enjoys-a-slight-profit-for-2008/ followed by its dramatic layoffs of 20% of its workforce http://www.arcticstartup.com/2009/10/06/sulake-to-lay-off-20-of-helsinki-employees/, many pundits have speculated where all the cash and VC funds are going http://ramine.net/2009/03/31/sulake-has-a-problem/
So what the hell is up with this seemingly booming virtual world success story?

Well, to cut to the chase, Sulake, with HABBO alone or its brand extensions (mobile, merchandise, TV, animation etc...) and new products (IRC Galleria) has never made money in its history. This is old news to PG http://paymentguy.blogspot.com/2008/07/100-million-habbos-still-losing-money.html So it should come as no surprise to my Dear Readers Sulake has always, ALWAYS lost money.


Here is why:

1. Fat Operations - HABBO launches most of its hotels in foreign countries the old fashioned way meaning it actually rents offices and hires expensive teams of people to run the local "Hotel". This results in large and excessive operational costs which could be avoided through regional or HQ operational consolidation;

2. Expensive Marketing - Sulake normally partners with a local media concern in international markets (e.g.; Sulake and TTG Group JV in The Netherlands http://www.sulake.com/contact/local_offices and failed partnerships in Russia, Japan and South Korea for example). This means the "local partner" takes about 50% of the revenue generated from the local Habbo Hotel. Some of these deals were so lopsided they actually share revenue (not profits / EBITA based) without deducting expenses so the local partner turns a profit while Sulake Group eats a loss;

3. Failed Advertising - Sulake has for many many years believed in the money making power of online advertising but through inept Advertising deals http://www.allbusiness.com/marketing-advertising/4151158-1.html and "partnerships", despite innovative campaigns (there are many http://www.ebrc.fi/kuvat/hynynen.pdf) has not realized the advertising power of such a large community of Teens, Tweens and young kiddies world wide;

4. Freemium HABBO is a Loser - Despite what its long-term CEO says, HABBO's freemium model bites and loses money year after year http://www.arcticstartup.com/2009/03/30/sulake-corporation-reports-e-48m-profit/ Sulake has never been able to boost its member buying % through a compelling subscription based membership / premium membership plan ala Club Penguin etc... They even know this http://www.pafis.shh.fi/~henjan06/v17.pdf The % of HABBOs that actually spend money in HABBO Hotel is less than 3% globally according to inside sources. It needs a subscription model asap http://paymentguy.blogspot.com/2008/09/sulake-must-offer-monthly-subscriptions.html;

5. Payment Commissions - Sulake with HABBO and IRC suffers crushing payment commissions. Sulake has to eat huge losses from its over reliance on micro-billing / telco (i.e. premium SMS) billing fees. Despite generating 75 million+ micro payment transactions, its average profit margin is less than 60% Sulake's inability to move to card, prepaid and other is FATAL (think interactive toys ala Webkinz) http://paymentguy.blogspot.com/2008/09/virtual-world-payment-trends-2008.html


6. Mediocre Management - Sulake has an insular "veteran team" of homogeneous managers (read "all Finns") running the business which has grown and expanded http://www.sulake.com/company/management?navi=1.3. But after a decade of losing money and delayed IPO's http://paymentguy.blogspot.com/2007/04/sulake-eyes-ipo-in-2008.html they need new blood. HABBO was and still is a Golden Goose. But it needs new leadership and better faster execution of an adaptive strategy if it will ever realize its potential. Why fire all these employees without a management change?

Virtual Worlds News Sucks - Since Joey Seiler Left

Once great, VWN now does suck terribly since off-to-law school Chief Seiler anointed Replacement Feldman http://www.virtualworldsnews.com/

Free vs Fee - The Debate Continues

The saying "there ain't no such thing as a free lunch" was popularised by science fiction writer Robert A Heinlein. But the science fact is that most of the online services and content we use today are a free ride. It is a growing trend. Despite pulling in 5% less traffic than transaction-based websites three years ago, free content sites are now 73% more popular, according to data from Hitwise. http://www.guardian.co.uk/tech-media-invest-100/free-or-fee

Introducing the HABBO Euro Ad Sales Guy

How many Ad sales guys has Sulake hired and fired for Habbo? Countless it seems ... here is another one. Good luck Mate! "Hussain Chowdhury is currently European Sales Director for Habbo UK, France, Holland and Germany. Habbo is a virtual world / social networking site aimed at teenagers. Hussain's media career spans across online, magazines, outdoor as well as cross media. Hussain began his media career at CBS Outdoor's (then known as TDI) Special Projects Division; CBS Impact where he worked on various outdoor innovations and ambient media projects. Hussain then moved to the award winning Bauer Creative Solutions Team (formerly Emap) where he held several posts across FHM, Arena, The Face magazines and different disciplines across a variety of integrated cross media campaigns spanning across magazines and online as well as utilising other areas of the portfolio that included events, radio and TV. Hussain worked with clients as diverse as Audi, Adidas, Electronic Arts, Scottish & Newcastle, Blackberry, Nintendo, Apple and many more.

Hussain¹s most recent role is at Sulake, Finnish virtual world/social networking experts and creators of Habbo. Sulake are specialists in building successful online communities in the youth space. Habbo features clients as diverse as Coty, 20th Century Fox, Sega, COI, Warner Bros and the NSPCC. Hussain heads up Habbo's advertising teams across Europe. http://www.guardian.co.uk/megas/judge-hussain-chowdhury

WonderRotunda Is Pretty Cool

PG likes WonderRotunda https://www.wonderrotunda.com/. Very cool and educational. Aaccording to Founder Garfinkel interviewed in The Washington Post; "he didn't do a lot of market research as he was developing Wonder Rotunda; he mostly came to this space as a concerned father. "My daughter was spending time on Webkinz and Club Penguin," he said. "They weren't as constructive as I thought they could be." http://www.washingtonpost.com/wp-dyn/content/story/2009/09/26/ST2009092600907.html
PG loves the Park Pass payment concept - https://www.wonderrotunda.com/checkout.php billing by Cybersource's Authorize.Net http://www.authorize.net/

WebKinz Trading Cards ...

... should also come with secret codes so they serve as payment methods ;)

Club Penguin Membership Cards Are Great But ...

CP has been a huge success. But it's payment network could also use some work. It is conspicuously absent of proven offline payment methods e.g. prepaid cards like Wallie, UGC, etc.... Check the CP Payment Method Mix https://secure.clubpenguin.com/membership/faq.htm#method-accept With its owner's huge retail distribution network (for those of you ignoramouses out there CP is owned by Disney and is part of the very successful and pioneering Disney Interactive Group) they do cover the US nicely with its own branded prepaid cards or "Membership Cards" https://secure.clubpenguin.com/membership/membership_cards.htm And they do offer them in the UK at Sainsbury's. But why not extend their payment network reach by adding other prepaid methods? Bet they would sell a lot of memberships through Wallie Card in The Netherlands or Ukash in UK for example. And why are they not selling their gift certificates in Euros and other currencies and only making them available in USD? Strange ... So comment here if you want CP to add more prepaid cards http://support.clubpenguin.com/help/contact/billing.php

Second Life Hires New VP to Help SL Residents Get A Real Life

Second Life, today announced the appointment of a Vice President of Web Development. New in the role is Robin Ducot, previously at Adobe Systems where she held a post with the same title. The hire falls syncs squarely with Linden's expressed goal of "extending the value of Second Life beyond the virtual world and helping Residents more closely integrate Second Life with their daily lives." To that end, the company points to the recent acquisition of Xstreet SL which added an ecommerce component to the virtual world and the launch of AvaLine, a service that lets SL residents receive cell, landline or VoIP calls inworld from people outside Second Life. http://www.virtualworldsnews.com/2009/08/second-life-accelerates-mainstreaming-with-hire.html#more

BOKU Gets "Bigger" By Expanding to Teeny Finland and Tiny Taiwan

Via VWN "Mobile Pay Provider Boku Expands Reach" http://www.virtualworldsnews.com/2009/09/mobile-pay-provider-boku-announces-partners-expansion.html
Boku-logo Monetizing the virtual world experience is one of the significant legs a virtual world and avatar-centric business model stands on. Among the fastest developing trends is the leveraging of mobile numbers and the billing relationship users have with their service provider as a means to facilitate inworld purchases, among other transactions. Mobile payment start-up Boku today announced a number of partnerships in the sector, including deals with Hi5, Meez, Offerpal and WeeWorld, and expansion into a number of far-reaching markets, including Finland and Taiwan. VirtualGoodsNews.com has the full story.

In a Sale, Skype Wins a Chance to Prosper - But Only If It Beefs Up It's Payment Network

Skype must immediately focus on beefing up its international payments infrastructure to start cashing in on its user base. What if every major prepaid card could offer skype credits for example? Anyway, here is a good look at Skype's future options since its sale by BRAD STONE; "SAN FRANCISCO — With its sale to private investors, the online calling service Skype has thrown off the last of the shackles that limited its growth and potential as a unit of eBay. Now its challenge is to turn its global popularity into bigger profits. EBay announced on Tuesday that it was selling Skype to a group led by Silver Lake Partners, a private equity firm in Silicon Valley. As part of the deal, which values Skype at $2.75 billion, the buyers agreed to pay $1.9 billion in cash, which includes a loan from eBay of $125 million, for 65 percent of the company. EBay, which is based in San Jose, Calif., will retain a 35 percent stake. http://www.nytimes.com/2009/09/02/technology/companies/02ebay.html?_r=1&hpw

SmartyCard Sets New Price Points

SmartyCard is adding subscription-based rates to its pricing options, the company said today. The idea behind the move is to help parents take the guess work out of topping off a child's SmartyCard account (and for parents who might forget to fund a child's account). SmartyCard responded to its summertime surveys and has made a basic subscription available at $6.95 per month for 5,000 points. A three-month subscription plan provides 5,000 points per month and the six-month subscription plan provides 6,000 points per month. Virtual worlds that use SmartyCard include Zwinky Cuties, Bella Sara, Club Penguin, and Stardoll.

PCI Compliance ...

Reports that companies involved in some of the latest data breaches were PCI-compliant continues to spark discussion of whether PCI is a solid measuring stick for overall security. Industry observers say yes, but businesses need to change their check-list approach. http://www.eweek.com/prestitial.php?type=rest&url=http%3A%2F%2Fwww.eweek.com%2Fc%2Fa%2FSecurity%2FPCI-Compliance-Only-the-Start-of-Security-365170%2F&ref=.

Linden Lab Family Tree

Stumbled upon this ... quite illustrative of Linden Lab's recent Management restructuring.
http://farm4.static.flickr.com/3618/3421940266_3c75901860.jpg?v=0

PayPal Opens Door to Developers

PayPal on Thursday opened its online payments system to third-party developers so they can embed a variety of PayPal payment mechanisms into Internet-based services.
The widely used payment provider, a division of eBay, formally announced the Adaptive Payments System at its Platform Preview Event in San Jose, California, after confirming some details about it earlier this month. PayPal began making APIs (application programming interfaces) available to developers and will add "dozens more" later this year, said Osama Bedier, vice president of platform and emerging technology. "PayPal will be the first and only global payment service open to third-party developers," PayPal President Scott Thompson said at the launch event, which was webcast. The company intends to help developers implement payment tools that go beyond traditional e-commerce purchases to support a wider variety of services.

"Innovators like you need (to) and should get paid for your great concepts," Thompson said. Without an easy way to sell online services around the world, only a few innovators will bother, he said. Adaptive Payments includes a variety of tools for creating new payment tools. For example, it allows one payee to take its cut of a customer's payment and then split the rest among partner companies. Developers can also separate transaction approval from payment so the payment can take place offline or in some other setting with another approval, Bedier said. Adaptive Payments could also support payments over set-top boxes or mobile gaming platforms.

The company waited this long to introduce the developer program because it needed to make sure PayPal's security was strong enough, Bedier said. Some observers say PayPal is catching up to Amazon.com, which already offers APIs that give developers many options for using its payments platform. PayPal claims it has about 75 million active accounts in 190 countries, making payments in 19 currencies. The expansion of Internet-based services beyond traditional online shopping represents a big opportunity, according to PayPal. Several companies joined PayPal with plans to use or support Adaptive Payments. Most notably, Microsoft said it will enable developers to embed PayPal payment systems in applications developed and delivered on Azure, its cloud computing infrastructure due later this year. TwitPay, a startup offering payments on Twitter via PayPal accounts, is a beta tester of Adaptive Payments. It used PayPal's APIs to create capabilities such as making a single payment that is split up among several recipients, said TwitPay CEO and cofounder Michael Ivey. Among other things, TwitPay allows users to settle debts, run up tabs and get paid for Twitter-based applications, he said.

LiveOps, another beta customer, uses cloud computing to bring together teams of call-center operators who work at home. LiveOps is expanding its offerings to include services such as transcription, translation and document review. The new service, called LiveWork, has been collecting payments with a system based on Adaptive Payments for several months, said Michael Neril, senior director of LiveWork business development. It was easy to integrate the payment system into the LiveWork service and took just a few days, Neril said. Developers can apply to get involved in the beta program for Adaptive Payments through x.com, PayPal's developer site. Through "code and build" sessions in the next few months, about 300 will be admitted by November, the company said. Beta users can use the platform for payment systems on live, commercial services. On Nov. 3-4, PayPal will hold its first developer conference, PayPal Innovate X, in San Francisco. The beta program will expand further after that, but PayPal won't give a date when Adaptive Payments will emerge from beta. http://www.pcworld.com/businesscenter/article/168978/paypal_opens_door_to_developers.html

The Economist Covers Kiddie Virtual Worlds

Virtual worlds for children
Online playgrounds

Jul 23rd 2009
From The Economist print edition
There is life in virtual reality after all

REMEMBER Second Life, the virtual world that was supposed to become almost as important as the first one? Now populated by no more than 84,000 avatars at a time, it has turned out to be a prime example of how short-lived internet fads can be. Yet if many adults seem to have given up on virtual worlds, those that cater to children and teenagers are thriving. Several have even found a way to make money.

In America, nearly 10m children and teenagers visit virtual worlds regularly, estimates eMarketer, a market researcher—a number the firm expects to increase to 15m by 2013. As of January, there were 112 virtual worlds designed for under-18s with another 81 in development, according to Engage Digital Media, a market research firm.

All cater to different age. http://www.economist.com/businessfinance/displaystory.cfm?story_id=14098380

Gaia Hires Zong for Mobile Payments

Teen virtual world Gaia Online and mobile payment service provider Zong today announced a deal that introduces the option for Gaia users to purchase the site's virtual currency, Gaia Gold, with their mobile phone number. The agreement will make it significantly easier for the eight million people who visit Gaia monthly to buy virtual currency, and then digital goods, on the site. "We’re confident that Gaia Online's teen-based membership community will find Zong to be even easier than a traditional credit or debit card-based payment, and this partnership underscores the tremendous economic potential of the high-growth virtual goods industry," David Marcus, founder and CEO of Zong said in statement. http://www.virtualworldsnews.com/2009/07/gaia-teams-with-zong-for-mobile-payment-option.html#more

Playspan Launches Virtual Goods Store on MySpace & FaceBook

Well done! "Micro-payments across the gaming world is gaining serious traction, especially on social networks. PlaySpan, which powers micro-payments across over 1,000 video games and virtual worlds, is launching marketplace storefronts for Facebook and MySpace (which will be rolled out soon). The marketplace will which let users purchase online game items, virtual goods, and game currencies for online games and applications directly from their social networks.

What makes the marketplace interesting is that you can buy, trade, and sell goods within the marketplaces on Facebook and MySpace and then use the items in online game environments. And making a transaction on the marketplace becomes a whole lot more social, as your friends may be able to see it on your NewsFeed. PlaySpan, which recently acquired micro-transaction app developer Spare Change, has processed more than $50 million worth of micro-transactions through its PayByCash and Ultimate Game Card products. PlaySpan also raised $16.8 million in a series B funding last Fall from Easton Capital Group, Menlo Ventures, Novel TMT Ventures, and STIC. The startup was founded by a 12-year-old, Arjun Mehta, but it is actually run by his father, CEO and co-founder Karl Mehta.

The recent acquisition of Spare Change now makes sense. While PlaySpan’s focus so far has been within games and virtual worlds, it made a recent deal to power micropayments on hi5. Spare Change, on the other hand, powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo, and at the time of its acquisition was on its way to processing $30 million worth of transactions this year.

It seems like these days everyone is getting into micropayments, and the number of players are scaling quickly. With continued expansion on social networks, startup PlaySpan can become a serious player in a space where bigger players like PayPal, Facebook and MySpace are all considering making a move. The competition may be stiff but as micropayments start to integrate with consumers’ social graphs, but there seems to be the potential for more than enough opportunity for both startups like PlaySpan and Zuora, and the more established players.
http://www.techcrunch.com/2009/07/16/playspan-launches-virtual-goods-marketplace-on-facebook-and-myspace/

Facebook's Payment Guy

is ... Gareth Davies, who says stuff like ""We get a lot of requests to provide a platform-based monetization model. We want to help developers succeed as best as we can and also help users have a great experience. We have a gift shop on Facebook.com that enables our users to buy gifts using a virtual currency called Facebook Credits. And that's done very, very well for us. We're thrilled with that business, and it's growing... People love to buy [virtual] gifts and give them to their friends. It's a very fun, engaging activity. And so, having seen the success there and hearing the requests from developers that this would be of interest to them, we have begun testing the user Facebook Credits by offering them to developers, so that users can use Facebook Credits in an application to buy things. We're very early on in the test there, and so far, the results look good. We have a handful of apps live today."
http://www.gamasutra.com/php-bin/news_index.php?story=24378 He has without a doubt the payment industry's biggest window of opportunity with the Facebook user base and developer network to do truly game changing and innovative thing sin the world of payment. But so far you ca only buy Facebook credits with Credit Card. Will be interest to see whether he and his Facebook Payments Team come up with beyond the same old same old. Stay tuned...

Q: Why is the Linden $ the most successful virtual currency the world has ever known?

A: Because Linden and its exchange network (partnered and 3rd party) provide a mechanism for people to convert their electronic funds back into real dollars. So after selling virtual goods in Second Life you are able to turn that into actual value in your real life.

Q: What is the most succssful vrtual currency?

A: The Linden $.

VC's & Mobile Payments - Round 11

All about the current VC lust for mobile payment miracle providers .... http://www.nytimes.com/2009/06/22/technology/22pay.html NOKIA put 35 mill usd into OBOPAY last March

RIXTY Now In 10,000 Retails Spots

Well done Rixty!; "Paying for online entertainment without a credit card just got easier, thanks to Rixty. The innovative e-commerce company launched today its new cash-based payment system at more than 10,000 retail locations. Now anyone with cash and coins can convert that money into online purchasing power across an exciting array of entertainment merchants."

Good Vid on Gold Farming

http://multimedia.asiaone.com/Multimedia/News/Story/A1Multimedia20090711-7195.html

KidsCom.com, Partnering For Virtual Kids Universe

This is quite cool and smart. Kinda like Disney Interactive Group and its portfolio of virtual worlds, Kids.com is partnering with virtual world publishers to launch a network of kiddie virual worlds under its brand. So far the virtual worlds, Faithful Friends (see FF TV hosts - quite hot MILF's...), Primary Games, Elf Island and robotics maker WowWee Groups Virtual Animal Care Center. Four additional virtual worlds will be added to the KidsCom.com Idea Seeker Universe in the next month according to Jori Clark. http://pr-usa.net/index.php?option=com_content&task=view&id=236676&Itemid=28

KidsCom.com, which launched in 1995 and is the internet’s longest-running online family oriented community, is partnering with other virtual worlds, gaming sites, content providers and consumer products companies and real world destinations to create one safe and fun Virtual Universe.

“Since we have earned the trust of parents due to our history of supporting COPPA and CARU guidelines and because we have consistently delivered on our promise of being the place where their kids could Play Smart, Stay Safe, Have Fun™, we realized the time had come to create a network of partners that follow those same standards," describes Jori Clarke, founder of www.kidscom.com, now the Virtual Universe for kids and tweens. "With the ever expanding list of virtual worlds available for kids to play online, we know that many parents don’t have the time to review all of the options. They can be comfortable in the knowledge that every addition to our world will adhere to our mission statement.”

KidsCom.com has been seeking out partners with content that offers families wholesome fun for their kids, as well as an opportunity to do good in the real world or to bring families together in play. Each partner contributes a unique and fun play experience: Television and virtual world integration; toy and virtual world play support; online and offline “do good experiences”; novel approaches to game play. The following worlds and play options are now available in the Virtual Universe at KidsCom.com:

The Faithful Friends TV show, presented by Drs. Foster and Smith Pet Supplies on Animal Planet, provides to pet owners veterinarian advice and tips on subjects including health, nutrition, behavior, travel, new and aged pets, horses, fish & coral and birds. In the virtual world, kids have had the opportunity to watch TV clips and meet up with show co-host Electra Mustaine or leave messages for her on her avatar Idea Seeker home page. Faithful Friends is a copyrighted trademark property of Heads & Tails, Inc. and is created by Tony Loiacono.

Primary Games, created by teacher Susan Beasley, is a gaming site that offers kids, educators and parents access to learning games and activity pages that can be used in home and school settings.

Elf Island is a site that promotes good deeds with “Good Quests” that promote learning and giving back to others. While offering the fun virtual experience kids want, Elf Island is uniquely dedicated to instilling redeeming values and social responsibility, with a “mirrored gaming” concept that transforms online games into real world actions, including building houses in Honduras, protecting polar bears in the Arctic, sharks in the Galapagos Islands and more.

WowWee Group Limited has established a virtual Animal Care Center for their award-winning brand of WowWee Alive™ plush animal babies. The huggable and life-like plush animals, which come “alive” in response to loving attention, can be fed and heard as kids play with them online. Two Online games – animal matching and trivia - provide kids with additional opportunities to interact with the WowWee Alive baby animals.

Four additional virtual worlds will be added to the KidsCom.com Idea Seeker Universe in the next month.

For more information, please visit the Company's web site at www.kidscom.com.

Media Contact
Jori Clarke
Circle 1 Network
414.271.5437 (office)
414.305.7742 (cell)
Jori.Clarke@circle1network.com

ClickandBuy says ecommerce retailers should offer more payment options

Well, they would say that of course ... "According to a recent study conducted by YouGov and commissioned by German online payment service ClickandBuy potential sales are being neglected by some of the UKs largest e-commerce sites and online retailers due to the lack of different payment methods available to customers. The survey says that more than 50% of regular online shoppers will cancel a potential purchase if their preferred payment method is not available. The study makes a review of what options can large retailers offer to their consumers apart from traditional Visa or other credit cards. Thus, it was noticed that while many smaller retailers offer PayPal (and it’s something consumers have grown to expect), practically none of the larger retailers offer this to their customers. Those utilizing Google Checkout have an extra button on their Adword ads asserting this, which, according to Google, increases the amount of clicks these ads receive by 10%. This is a great option to address those dubious about submitting their credit card details to an ‘unknown’ entity. In a sporadic move Kiddicare have made it possible for their customers to pay for goods with cash by buying a voucher and entering the voucher code during the check out process. The vouchers are available from over 21,000 pay points throughout the UK, including many petrol stations and local newsagents. The reason for this new mode of payment is customer demand, as explained by Scott Weavers-Wright, partner at Kiddicare, via silicon.com. “We get about 400 or 500 calls a day and 300 or 400 emails a day, (and) we do get questions on ‘is there an alternative payment?’ and it’s definitely increasing” Often the reason consumers are looking for alternative payment methods to the standard Visa card is the lack of trust they sense towards a website. Consumers should be reassured whilst visiting a site in regards to security and privacy, particularly through the checkout process and product pages; so the inclusion of a genuine VeriSign logo confirming this is essential. Displaying company contact details (ideally physical address, email address and telephone number) also significantly helps, assuring people there’s somewhere to turn if anything should go wrong. Whilst the fear of online crime and fraud maybe more prevalent than the actual realities, online retailers need to offer customers the ability to pay for their purchase through their preferred payment method, if they want to maximize their sales and profit." http://www.ecommerce-journal.com/news/15966_clickandbuy_says_ecommerce_retailers_should_offer_more_payment_options

Wee World R.I.P.

How lame; WeeWorld Honors Farrah Fawcett, MJ from VWN; "Never mind how Farrah Fawcett died (hmm, explain that to a 12-year-old), she died. On Thursday of last week to be exact. Now, it's time to react -- with pangs of nostalgia, with tears, and with virtual goods."http://www.virtualworldsnews.com/2009/07/weeworld-honors-fallen-stars.html#more
She was the best thing to come out of Texas since Shiner Bock however ...

ONVERSE Runs On Ramen

In development for over a year and a half, virtual world Onverse opened its doors to users just last week. The five-person team launched on a shoestring --"on savings, family and ramen noodles," http://www.virtualworldsnews.com/2009/06/qa-onverse-ceo-steve-pierce.html Sorry Dear Readers (and Onversians...), but there is nothing new with this virtual world. Same old same old ... With such a competitive space over-saturated with kiddie and teen virtual worlds, you better get used to the Ramen, because it does not seem likely your world will make any dough. PG has an old hot pot stored from college days he can mail you guys to keep your noodle fix goin' ... Hate to be a prick. But you are doomed to wither and die i.e. FAIL unless you differentiate. Try doing something different - like tying in augmented reality via mobile content like vids and photos and sms's/twitters for a mobile centric virtual mixed reality world using your Onverse platform ... or just add frozen vegetables to your Ramen every now and then for variety.

HABBO Study Shows Competitors More Popular ... Than HABBO!

Sulake makers of Habbo released its annual Global Habbo Youth Survey Brand Update which in typical Sulake ass-backwards fashion shows its competitors are more popular than HABBO itself; "The study, says Habbo, explores teens' connection and interests toward individual brands and highlights their preferences in categories including consumer electronics, music, sportswear, and games. On the game/virtual worlds front, Runescape maintained its number one status among US respondents, followed by Gaia Online, IMVU, World of Warcraft, and Club Penguin.http://www.virtualworldsnews.com/2009/06/study-runescape-gaia-online-imvu-most-popular-with-us-teens.html

Linden Lab Hires Too Many Too Soon

Linden is hiring way too many people way too soon. Virtual worlds for the enterprise is still 2 years away... What is really funny is how many of these Linden Folk slog off to work in a real life office cubicle rarely employing their own virtual world for work ... Second Life rarely works like its supposed to and even no-life shut-in 400lb Virtual Vampire Role players complain about its reliability so what Fortune 500 Company would actually serious consider using the same buggy virtual collage of technology to run inside their own company? And still keep their job that is. We all saw what happenned to Renaud and EPredator http://paymentguy.blogspot.com/2009/02/epredaotor-becomes-econsultant.html: "Is the eminent roll-out of Nebraska, the virtual world-in-a-box being developed at Linden Lab, responsible for the company's rabid pace of hiring? According to the San Francisco Business Times, Linden Lab has hired nearly 30 people since the beginning of the year, with 25 of the hires devoted to the marketing and development of Second Life products for enterprise customers. And still there is a need for 18 additional staffers, according to the company. But just how many of those new and upcoming hires are related to LL's standalone version of Second Life designed to run behind a company's (or school's) firewall, the company wouldn't say. One thing it would disclose is that pricing for the product is due to be revealed this summer."http://www.virtualworldsnews.com/