Roundup: hi5 Restructures Around Games Portal Model, Strikes Payment Partnership with Paymo

Hi5 LogoLast week, major global social network hi5 reportedly laid off about half of its 100 person staff after a potential large funding round fell through at the last moment. From the sound of things, hi5 kept the groups that have been working on its virtual currency system in tact, and is essentially reorganizing around a gaming portal business model. It appears that hi5 is betting it can monetize its international audience much better through transactions than it ever could through advertising.

It was just last month that hi5 announced that it had created a universal virtual currency, hi5 Coins, for its application platform. Any developer can integrate hi5 Coints into their applications. Meanwhile, in February hi5 also launched a Flash games portal from developers like Arkadium and others. However, unlike other Flash portals on social networks, hi5 has integrated the games directly into the site’s communication channels and virtual currency system.

paymo_logo_tm1In order to make it easier for users to purchase the new currency, hi5 also recently partnered with Paymo, a global mobile payments network. Now, Hi5 users can purchase hi5 Coins via their mobile phones without the use of a credit card in 24 countries. The move reflects a general industry trend: purchases of online goods without the use of credit cards have grown significantly. In fact, Paymo reports that more than 75 percent of Internet users worldwide do not even have a credit card. By contrast, Paymo says, approximately three billion consumers own a mobile phone.

With mobile payment services like Paymo, Zong, and Mobillcash, users do not need to have a credit card or purchase currency cards to acquire virtual goods. Instead, these mobile payment services allow users to simply enter their phone number on their website and reply to a text message sent to them. Assuming they respond to the text, the charge is then placed on their monthly phone bill.

Though this payment method is easy, such convenience comes at a price for users. In addition to the price they pay for the virtual currency, users must cough up an additional 10 percent service fee that Paymo charges them. Paymo justifies the charge by noting that cell phone carries have their own transaction fees, ranging anywhere from 20-40 percent. Assuming that these statistics of credit card versus mobile phone consumers is accurate, even a small portion of that three billion would render this partnership worthwhile for both companies.

Sponsored Post

Hands-On Social Media Training for Beginners


Social Media 101
In our Social Media 101 boot camp, you’ll determine the social media sites that matter most to you, based on personal and professional goals. Starting May 13, you will learn the best practices for using Facebook, Twitter, LinkedIn, Google+, Pinterest, Instagram and Tumblr, along with complete personal profiles on each site. Register today!

Leave a Reply

9 Responses to “Roundup: hi5 Restructures Around Games Portal Model, Strikes Payment Partnership with Paymo”

  1. Roundup: bhi5/b Restructures Around Games Portal Model, Strikes b…/b | hi5 thailand says:

    [...] more here: Roundup: bhi5/b Restructures Around Games Portal Model, Strikes b…/b Social networks: acquisition or retention tools for marketers?Natural Ways To Make Your Penis [...]

  2. Facebook Platform Payment Providers Report Strong Growth in Q1 says:

    [...] its staff a couple weeks ago, has refocused its business around a gaming portal model and has been striking deals with multiple payment [...]

  3. hi5 Partners with PlaySpan to Expand Virtual Currency Payment Options says:

    [...] means to purchase hi5 Coins,” says Anil Dharni, Vice President of Products at hi5. In a recent partnership between hi5 and Paymo, the mobile payment company reported that 75% of internet users do not own a credit card. With the [...]

  4. Mochi Media and hi5 Partner to Integrate Virtual Currency and Sell Ads says:

    [...] network Hi5 has been racking up the partnerships lately – most recently on the payments front with Paymo and PlaySpan. However, the company also recently struck a deal with Mochi Media, a company that [...]

  5. Social Games, une mine d’or pour les plateformes sociales | FredCavazza.net says:

    [...] donc pas un hasard si une plateforme sociale comme Hi5 s’est réorientée autour des jeux (hi5 Restructures Around Games Portal Model), les réseaux sociaux ont tout à gagner en internalisant leurs propres jeux. Exemples : Facebook [...]

  6. RockYou Pets Becomes First hi5 App to Launch with Virtual Currency Integration says:

    [...] has undergone a lot of transformation lately. With 63 million users around the world, the global social network has refocused its efforts [...]

  7. Social Games, une mine d’or pour les plateformes sociales | MKT planet - News Web Marketing - Nouvelles Technologies says:

    [...] donc pas un hasard si une plateforme sociale comme Hi5 s’est réorientée autour des jeux (hi5 Restructures Around Games Portal Model), les réseaux sociaux ont tout à gagner en internalisant leurs propres jeux. Exemples : Facebook [...]

  8. Hiring Signals: Facebook Looking for Someone to Lead Its Payments Initiatives says:

    [...] competitors like DST portfolio company VKontakte and global social network hi5 (which also recently launched a universal virtual currency for its application platform), to figure out how to make e-commerce work at low price points across [...]

  9. Ideal » Archive du blog » Social Games, une mine d’or pour les plateformes sociales says:

    [...] donc pas un hasard si une plateforme sociale comme Hi5 s’est réorientée autour des jeux (hi5 Restructures Around Games Portal Model), les réseaux sociaux ont tout à gagner en internalisant leurs propres jeux. Exemples : Facebook [...]

interested in advertising with inside social games?

Social Media Jobs
of the Day

Manager Social Media

Ralph Lauren
New York, NY

Social Media Manager

Superfly
Chicago, IL

Social Media + Web Management Consultant

IPPF/Western Hemisphere Region
New York, NY

Director of Marketing (Social Media/Web)

Creative Circle
Corona, CA

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Also from Inside Network:   AppData - Facebook & iOS Application Stats   PageData - Engagement Data on Facebook Pages   Facebook Marketing Bible   Inside Network Research
 
home | site map | advertising/sponsorships | about | careers | contact us | help courses | browse jobs | freelancers | events | forums | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us