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

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 (see story).

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.

What do you think about this? Send us your feedback. Click Here.

 

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry