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US: Facebook now holds money transmitter licenses in 15 states

Friday 2 March 2012 10:27 CET | News

Facebook has received a money transmitter license in at least 15 states, an analysis by American Banker has unveiled.

According to the source, Facebook has licenses in Arkansas, Delaware, Georgia, Idaho, Iowa, Kansas, Kentucky, Missouri, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Texas and Washington.

In its filing for an initial public offering (IPO) Facebook has declared it applied for certain money transmitter licenses and has plans to apply for more in the US. The social network has already received several licenses in August 2011.

States require companies which accept and transmit currency to have money transmitter licenses, although laws vary across the nation. Companies like Amazon, Google and PayPal are already licensed money transmitters.

In 2011, Facebook generated USD 557 million (15 percent of its revenue) from payments. Users can buy Facebook Credits to purchase virtual goods and digital media within applications. Game developers are required to use Credits for transactions, of which Facebook takes a 30 percent cut.

In recent news, Facebook has entered an agreement with US mobile payments and analytics company Bango for payment services.
 


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Keywords: Facebook, Facebook Credits, online payments
Categories: Payments & Commerce
Companies:
Countries: World
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Payments & Commerce






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