Alternative payment methods
Microtransactions
Localization
Offering local payment methods fuels conversions and revenue
April 1, 2025
The global market at a glance
The mobile games market is growing fast, with revenue expected to reach $118.9 billion by 2027, up from $98.7 billion in 2024. With a steady annual growth rate of 6.4%, developers worldwide have new opportunities to expand. China is the most significant player and will likely generate $34.6 billion in revenue this year alone. Understanding these trends can help developers stay ahead and maximize their success as the industry evolves. The gamers who fill this booming landscape expect seamless shopping experiences with secure payment options. Catering to players' payment expectations is not just a convenience but a standard industry expectation. This article explores how offering players their ideal purchasing experience for game content can enhance conversion rates, build trust, and provide a competitive edge.Shifting player expectations
The gaming industry recognizes that players worldwide have different needs and preferences. The diversity has led to partnerships between gaming marketplaces and alternative payment providers to broaden the variety of payment methods available. These options now go beyond traditional credit and debit cards to include e-wallets like PayPal, Apple Pay, and Alipay, which offer fast, secure, and convenient transactions. Mobile payments are also gaining popularity, leveraging smartphones to simplify purchases with services like Samsung Pay.Additionally, alternative payment methods such as prepaid cards, cash payments, and digital vouchers cater to those with limited access to conventional banking. Bank transfers and direct carrier billing are also available, providing secure and straightforward ways to pay, especially in areas where traditional banking is less accessible. These expanded payment options meet regional preferences, enhance player satisfaction, streamline the checkout process, and help drive revenue growth. According to the AGA, 90% of frequent and high-value gamers prefer to pay with local methods when available. Additionally, 20% of online shoppers leave without buying when they don't encounter their favorite payment option. As gaming expands into new countries, providing trusted local payment choices is essential for staying competitive and reaching more players.
Regional payment methods: What works and where?
According to research conducted by the Baymard Institute, barriers like complex checkouts and a lack of available payment methods are leading more players to abandon their carts at a rate of 64.2% within the gaming industry. Regarding cart abandonment rates by device, mobile devices have the highest rate, at 85.65%, followed by tablets and desktops. Extending regional payment choices to an audience allows them to conduct transactions in a familiar and comfortable setting. While the need for localization is universal, customers in established, emerging, and expanding markets below have differing needs and preferences. Here are a few examples of why one size does not fit all, reinforcing that game developers who provide variety can find increased ecommerce opportunities.- APAC: WeChat Pay boasts 800 million users, Southeast Asia’s GrabPay claims 180 million users, and India’s UPI has around 300 million active users.
- In North America, 44 million users purchase with Apple Pay, 25 million use Google Pay, and 16 million use Samsung Pay.
- Western Europe and Central Europe: Sofort caters to 85 million users, Klarna serves 147 million users, and Giropay boasts 45 million users.
- CIS Region and Eastern Europe: 17 million users prefer QIWI Wallet, 18 million choose YooMoney, and 29 million customers opt for WebMoney.
- South and Central America: 3.5 million users in Argentina prefer Rapipago and Pago Fácil while 8 million users find OXXO Pay convenient.
- Middle East and Africa: M-Pesa with 51 million users, Airtel with 21 million users
4 real-world reasons to adopt localized payments
- Higher conversion rates: A company entering Brazil saw a 30% conversion boost after enabling Boleto Bancário.
- Building trust and credibility: WeChat Pay and Alipay dominate in China despite Visa/Mastercard availability.
- Access to underbanked markets: In Southeast Asia, GrabPay, GCash, and Touch ‘n Go excel due to low credit card usage.
- Expansion of payment channels: In Africa, mobile money accounts are expanding at a rapid 12% annual growth rate. In January 2024, the global value of mobile money transactions surpassed $1.40 trillion, marking a robust 14% increase from $1.26 trillion the previous year.
How Xsolla Payments powers global game success
Xsolla Payments is a global payment solution tailored for the gaming industry. It supports over 1,000 payment methods and 130+ currencies across 200+ regions. One of its products is Pay Station, which lets developers offer localized and alternative payment options, including credit cards, e-wallets, direct carrier billings, and gift cards. Thus, it ensures seamless transactions for players worldwide.
With built-in fraud protection, tax handling, and compliance, Xsolla Payments streamlines gaming monetization, allows developers to focus on creating great games, and ensures game businesses can conduct transactions from diverse players worldwide, maximizing your reach and revenue potential. As Merchant of Record, these are the benefits and services Xsolla offers:
- Handling local taxes and ensuring compliance with regional privacy, information security, and regulatory laws.
- 1,000+ payment methods across 200+ territories, including e-wallets, mobile money, and bank transfers.
- Ready-to-use, built-in (hosted, and customizable (headless) checkout available in 20+ languages.
- Smooth, secure payments with fraud prevention and dispute management.
- Direct-to-consumer products and solutions that make it easy to sell games globally —from global payments to monetization and distribution.
Getting started
The benefits of localizing payment methods are straightforward. It provides convenience, boosts player retention, maximizes conversions, ensures security, and helps developers thrive in a highly competitive landscape. To fully realize these advantages, talk with our experts and discover how Xsolla streamlines your game's payment experience. You can also create an account to explore Xsolla’s publishing and developmental tools.
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