Offerpal's GamePoints virtual currency draws half a million users in three weeks

Offerpal Media says it has a hit on its hands with GamePoints.com, a new consumer website that lets users earn virtual currency for use in their favorite social games. In its first three weeks, the site has drawn more than half a million users.

Gamers go to the site to perform tasks that will earn them virtual currency in lieu of paying for it with real money. So far the most popular ways to earn virtual currency have been watching videos, completing surveys and earning shopping rewards.

For game developers on social networks such as Facebook, that’s good news. Those 500,000 users are actively building up their virtual currency stockpiles. That means they are more likely to return to the games and be actively engaged in them. It’s like a new customer acquisition channel, as gamers are showing that they are willing to go to a web site to get virtual currency that they can use in a game. They can thus earn rewards for games without having to grind through levels collecting points inside a game.

Fremont, Calif.-based Offerpal launched the new GamePoints system on May 4.  At the time, the company said it hoped to work closely with platform holders such as Facebook. But Facebook is entering the virtual currency business as well by preparing to formally launch Facebook Credits. Hence, Offerpal is competing with Facebook. But Offerpal already has substantial business with offers, which are special ads that ask users to complete a task in exchange for currency to buy virtual goods inside social games.

The Game Points can be exchanged for in-game currency in more than 1,500 online games and apps. You can earn game points shopping at big-brand retailers such as Macy’s Overstock, Gap, Buy.com, Snapfish, McAfee, Eastern Mountain Sports, CostPlus, and hundreds more.

Game Points can be spent on virtual goods in games in Facebook, but it will also be available to purchase virtual goods  MySpace, Bebo, Hi5 and other social networks as well as standalone online games and virtual world sites. At launch, participating gaming applications include Zynga’s FarmVille, YoVille, Zynga Poker, Mafia Wars, Café World, PetVille, FishVille, Vampire Wars and others; Playdom’s Mobsters, Sorority Life, Social City, Tiki Resort and others; Digital Chocolate’s MMA Pro Fighter; HitGrab’s Mousehunt; TheBroth’s Barn Buddy; Tall Tree Game’s Fish World; K-Factor Media’s Castle Age; Tree Room’s My Town; Apps-O-Rama’s Car Madness; Offbeat Creations’ Be a Tycoon; BitRhymes’ The Warlords; Five Minutes’ Happy Farm; and many others.

Offerpal was founded in 2007 and it has issued more than 1 trillion virtual points to over 225 million consumers across 2,000 publishers. Besides Facebook, its rivals include Social Gold (which also took a swing at Facebook Credits recently) and PlaySpan in virtual goods and AdKnowledge and TrialPay in offers.

The company faced criticism last year for reportedly deceptive marketing offers, and founding CEO Anu Shukla was replaced by George Garrick, who has since tried to improve the company’s image.

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