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Booyah, the developer of location-based social game MyTown, announced on their blog yesterday that they are partnering with Facebook and will be giving away Facebook Credits to players when they check-in to real-world locations. Don’t know about MyTown? It’s actually the most popular location-based app with over 2 million users (that’s more users than both Foursquare and Gowalla). MyTown has even set some incredible records for app retention. For more background on MyTown, check out @jeffhilimire‘s blogs here and here.

This partnership is huge for both MyTown and Facebook. For MyTown, it gives users even more incentive to continue playing the game and checking-in. I’ll be honest, my check-in frequency has slowly started to decline, but having the chance to win Facebook Credits just might get me back into checking-in on MyTown (especially since I like to play a lot of Facebook games). Plus, MyTown is the 1st mobile app to offer this feature.

In terms of Facebook, they have been working hard to promote their virtual currency (they recently launched a new promotion with CrowdStar). This will mark Facebook Credits first entry into the mobile arena. Considering that a lot of Facebook games are spreading out to mobile platforms (you can now play FarmVille on your iPhone now), this is a big deal for Facebook Credits.

What do you think of this partnership? I’m really interested to see how Facebook Credits take off on Facebook and if it bleeds over to more mobile games / platforms.