A great shopping experience begins when sellers communicate with customers in their native language. This demonstrates that the seller understands and cares about the customer's needs and preferences. Then, by presenting prices in the customer's local currency, sellers can make the buying process even more convenient, typically leading to a 12% increase in sales. In this blog post, we reveal how Xsolla Payments solution goes beyond the basics to:

• Automatically convert prices during checkout into 130+ currencies
• Represent local taxes and regulations
• Customize the payment interface to the consumer’s language
• Display relevant, local payment methods for each individual game lover

What is transactional localization?

When a game developer expands their game to an international audience, they take on a number of new business considerations, including how to attract new customers in foreign markets. A corrily survey suggests that more than 90% of respondents prefer to see prices in their local currency. When a developer takes on the task of localizing pricing, they give careful attention to:

• Pricing. Adapting to local currency and preferred payment methods.
• Consumer buying patterns. Understanding the purchasing behaviors of individuals in every region.
• Language. Incorporating local languages into the checkout experience.
• And beyond. Addressing other country-specific requirements, each unique to the target market.

In our previous blog post, “Streamline your players’ shopping experience with PayRank,” we explained how Xsolla’s smart algorithm PayRank automatically tailors payment methods relevant to each consumer across 200+ markets. In this article, we aim to dive deeper into three other components of local pricing that are key to revenue growth.

2 pillars of game ecommerce localization

Currency conversion: Every country is unique Efforts to localize currency ensure that customers spend more time shopping than manually calculating a final, total price in the local currency. For a game developer, there are two approaches to choose for currency localization:

1. Global pricing. To expand your game’s reach immediately, you should tailor pricing specifically to local markets by converting prices into different currencies; e.g., USD to EUR, USD to JPY, USD to PLN, and more. Automatic price conversion based on locale can ensure a 9% month-over-month growth rate. The Xsolla case study showcases this: after launching the local currency BRL in Brazil, sales increased by 30%.
2. Local pricing. Another approach to connecting with global consumers is to adapt pricing based on local market conditions and customer behaviors. This strategy ensures that prices are adjusted to align with different regions' purchasing power and economic conditions, making the product more accessible and attractive to local customers. For example, an item or subscription plan that costs $99 in the US may cost 1,000฿ in Thailand.

Xsolla Pay Station supports 130 currencies and, regardless of the approach a game developer chooses for currency localizations, supports price conversion of purchased items to the end-user’s local currencies if the currency of an item differs. For example, if a user is located in South Korea, the price will be displayed in Korean won, and for consumers from Indonesia, the price is reflected as Indonesian rupiah. Taxes and regulations: calculate, pay, and comply Transparent display of local taxes is a fundamental element of localized pricing. In our blog post “Understanding taxes for game developers,” we introduce the basics of how taxes are calculated and paid and key reasons to comply with local regulations. It’s a must-read to enhance your localization knowledge. Each country approaches taxes differently. For example, the United States has both national and state taxes, the EU is bound by a Value Added Tax (VAT), and Australia’s system is based on a Goods and Services Tax (GST). It pays to either become familiar with local laws, regulations, and restrictions or rely on a well-managed solution, like Xsolla Pay Station. Beyond taxes: gaming regulations To promote responsible spending, and prevent financial and emotional distress (addiction) for players, some countries have implemented limits on the amount of money and/or on the amount of time that players can spend in games. To comply with these regulations, the localized Pay Station experience informs your players about spending and time limits. This is to ensure that they won't be surprised after trying to pay if the limit is applicable in their situation. To learn more about global gaming regulations, read our blog post, “Navigating global gaming regulations: A comprehensive overview.” Familiar interface: Local shopping means faster buying Translating your Web Shop and checkout to the local language and shopping patterns strengthens the bond with new customers and long-time users. A McKinsey study revealed that even small changes to offer customers a more familiar shopping experience can result in an immediate sales revenue increase of 2-7%; bolder efforts to reflect local consumer behavior can (over a 2- to 3-year period) boost revenue up to 10% and reduce cost by up to 25%. But, true localization means deeply understanding your target market —meaning awareness of how players in different regions perceive your game and what they’re willing to spend. In addition to payment method preferences and pricing differences, every country has its own unique gaming culture.

Top localized pricing benefits

1. Cart abandonment rate decrease According to a survey of 500 business leaders in the UK and North America, when payment experiences were localized for APAC buyers, cart abandonment rates were reduced by 32%. A 2023 survey published on Statista also found that 11% of consumers in Europe will cancel an online purchase if they are not able to pay in local currency. These statistics are significant, making it clear that local pricing optimization is very important for closing sales and improving conversion rates. Sales grow by making offerings resonate more with customers in specific markets: the more regions you adapt your prices for, the faster you grow. 2. Increased loyalty Aligning your product with the interests of your buyers’ personalities and habits fosters loyalty and trust, and enhances customer satisfaction. They feel cared for because you adapt the experience to their needs, wants, and emotions.

Getting started

In-house localization can be a daunting task for game developers. Adapting a game to different cultures and languages involves numerous complexities that can quickly become overwhelming. Attempting to fully localize every aspect of a game for every market can be prohibitively expensive and time-consuming. A more practical approach is to find a partner with game commerce localization experience. Not just a payment provider, but a Merchant of Record with the most comprehensive payments solution and the power to manage payment localizations fully —freeing you to focus on what you do best: Make great games. Xsolla Payments is the solution that allows you to monetize your game by providing your customers with localized, convenient UI to pay for web and in-game purchases:

• 700+ payment methods in 200+ geographies, including bank cards, digital wallets, BNPL, instant payments, mobile payments, cash kiosks, gift cards, and many more
• 130+ currencies
• UI localized in 20+ languages

Talk to one of Xsolla’s monetization experts or set up an Xsolla Publisher Account to see our approach to localization in action and get more details on localizing your game and reaching new customers worldwide.