Social App Micropayment Service Spare Change Acquired by PlaySpan

sparechangeIt was just last week that Inside Facebook detailed the action Facebook Platform payment providers are seeing – but the consolidation is already starting.

Today, Spare Change, one of the top providers of micropayment solutions to app and game developers on Facebook and other social networks, announced that it has been acquired by PlaySpan. Terms of the deal were not disclosed.

PlaySpan, which has built a white label virtual currency monetization platform for online and social games, is itself just a relatively young company. It raised a $16.8 million Series B from Easton Capital Group, Menlo Mentures, Novel TMT Ventures, STIC and others last December.

However, the company says it is already powering over 1,000 online games, social network applications, and virtual worlds. PlaySpan also recently announced a deal to power payments for hi5 and acquired game payments company PayByCash last year. In addition, the company operates the Ultimate Gamer Card retail card business.

Spare Change was one of the earliest players on Facebook and other social networking platforms, enabling users to purchase Spare Change “credits” with real cash, which they could then spend in very small increments with any of the 700 apps or games in the Spare Change network. It was founded Lex Bayer, Simon Ru, and Mark Rose, who will stay on with PlaySpan at Spare Change’s Cupertino, CA headquarters. PlaySpan is headquartered in Santa Clara, with offices in Virginia, Ohio, and Mumbai.

We expect to see consolidation in the Facebook Platform payments and virtual currency monetization space continue throughout the year. For more backgroud, see our earlier report Facebook Platform Payment Providers Report Strong Growth in Q1.