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From cart to checkout: Tackling abandonment in the gaming industry
December 3, 2024•5 min
Cart abandonment has long been an issue in e-commerce, with over $4 trillion in global revenue left on the table yearly. On average, 69.57% of people abandon their shopping carts, with those shopping on mobile making up the majority of people, at 85.65%. When looking at industry-specific statistics, this statistic shifts, with the gaming sector being slightly below the overall average at 64.2%. While there are strategies to engage would-be customers to continue the checkout process, it remains a relevant statistic for businesses to understand, monitor, and manage.
Equally important, but with a distinct difference, is checkout abandonment. Similarly to cart abandonment, where a customer leaves your online store before purchasing items in their cart, checkout abandonment happens even further into the funnel, with payment credentials being entered but purchases left incomplete. On average, 27% of gamers abandon checkout due to slow payment processes. This can devastate your company's bottom line and hint at different problems in your online store's ecosystem, resulting in lost revenue, decreased customer retention, and missed customer opportunities. Fortunately, Xsolla Payments provides a comprehensive solution to address concerns stemming from cart and checkout abandonment issues. But before we dive into what our well-rounded solution can do for your gaming studio, let's go over the challenges game developers face and what checkout issues look like for players.
The gaming industry is global, and with that comes a diverse pool of payment preferences, a need for localization, and country-specific regulations. This can be difficult for studios to manage when their audience is located in one region, let alone multiple areas. Player preference for a particular payment method is often the difference between making a purchase or abandoning the checkout process, and the likelihood of this occurring is different by region. For example, the Latin American market has a higher tolerance for inconvenient payment methods, with 57% continuing with a purchase, even if their preferred payment method isn't available. This cultural distinction doesn't exist in Europe, where consumers will only continue purchasing if their preferred method is available, with only 46% completing transactions. While some markets may favor credit cards, others may prefer digital wallets or carrier billing options, making it crucial for your game to provide a wide range of payment options.
Localization also plays into this. Since player preferences vary, developers need to build custom checkout systems so each transaction is easy and familiar, regardless of its point of origin. It's not enough to provide the most popular payment methods for a particular region; developers must also anticipate and provide the relevant payment methods for each area.
Country-specific regulations also differ depending on the country. Rules about payments and in-game features, like loot boxes, vary significantly by region, requiring developers to navigate a maze of compliance standards. Incorrectly filing tax documents in one area can mean big trouble for your studio's ability to continue conducting business, or worse.
Pitfalls that lead to player abandonment during checkout
Players abandon checkouts for several reasons, beginning with a lack of preferred payment options. This is further exasperated when players face complicated or slow payment processes. Complex checkout systems deter players from continuing further in the checkout funnel. Too many steps and difficult user interfaces can frustrate players, increasing checkout abandonment rates. Security concerns also play a significant role, with 20% of users leaving if they feel the payment process isn't safe or credible. These barriers highlight the need for streamlined, secure, and flexible checkout experiences to keep players engaged and drive conversions.
Strategies to reduce checkout abandonment
Luckily, there are tested and proven strategies available to game developers to combat high cart and checkout abandonment rates. By creating a seamless checkout that keeps players engaged, studios can provide a streamlined and user-friendly approach that caters to players' preferences and builds trust. The following are strategies that, when employed, can improve a company's bottom line:
Equally important, but with a distinct difference, is checkout abandonment. Similarly to cart abandonment, where a customer leaves your online store before purchasing items in their cart, checkout abandonment happens even further into the funnel, with payment credentials being entered but purchases left incomplete. On average, 27% of gamers abandon checkout due to slow payment processes. This can devastate your company's bottom line and hint at different problems in your online store's ecosystem, resulting in lost revenue, decreased customer retention, and missed customer opportunities. Fortunately, Xsolla Payments provides a comprehensive solution to address concerns stemming from cart and checkout abandonment issues. But before we dive into what our well-rounded solution can do for your gaming studio, let's go over the challenges game developers face and what checkout issues look like for players.
Checkout abandonment in the gaming industry
The gaming industry is global, and with that comes a diverse pool of payment preferences, a need for localization, and country-specific regulations. This can be difficult for studios to manage when their audience is located in one region, let alone multiple areas. Player preference for a particular payment method is often the difference between making a purchase or abandoning the checkout process, and the likelihood of this occurring is different by region. For example, the Latin American market has a higher tolerance for inconvenient payment methods, with 57% continuing with a purchase, even if their preferred payment method isn't available. This cultural distinction doesn't exist in Europe, where consumers will only continue purchasing if their preferred method is available, with only 46% completing transactions. While some markets may favor credit cards, others may prefer digital wallets or carrier billing options, making it crucial for your game to provide a wide range of payment options.
Localization also plays into this. Since player preferences vary, developers need to build custom checkout systems so each transaction is easy and familiar, regardless of its point of origin. It's not enough to provide the most popular payment methods for a particular region; developers must also anticipate and provide the relevant payment methods for each area.
Country-specific regulations also differ depending on the country. Rules about payments and in-game features, like loot boxes, vary significantly by region, requiring developers to navigate a maze of compliance standards. Incorrectly filing tax documents in one area can mean big trouble for your studio's ability to continue conducting business, or worse.
Pitfalls that lead to player abandonment during checkout
Players abandon checkouts for several reasons, beginning with a lack of preferred payment options. This is further exasperated when players face complicated or slow payment processes. Complex checkout systems deter players from continuing further in the checkout funnel. Too many steps and difficult user interfaces can frustrate players, increasing checkout abandonment rates. Security concerns also play a significant role, with 20% of users leaving if they feel the payment process isn't safe or credible. These barriers highlight the need for streamlined, secure, and flexible checkout experiences to keep players engaged and drive conversions.
Strategies to reduce checkout abandonment
Luckily, there are tested and proven strategies available to game developers to combat high cart and checkout abandonment rates. By creating a seamless checkout that keeps players engaged, studios can provide a streamlined and user-friendly approach that caters to players' preferences and builds trust. The following are strategies that, when employed, can improve a company's bottom line:
- Simplify checkout flows. Checkout flows with saved payment methods or one-click options reduce unnecessary steps and make the process quicker and more convenient.
- Offer global and local payment methods. Offering various payment options—such as credit cards, digital wallets, carrier billing, and regional systems—ensures players can pay in the way that suits them best.
- Provide enhanced security measures. Security and transparency are equally critical; displaying trust icons, SSL certificates, and clear security messaging reassures players their information is safe.
- Be upfront about costs. Displaying all fees and taxes early in the process prevents unpleasant surprises, builds confidence, and reduces the likelihood of abandonment.
Xsolla Payments
Checkout abandonment remains a significant challenge for game developers. However, by implementing streamlined checkout processes, gaming companies can reduce these rates and improve overall metrics. It's important to view checkout optimization as an ongoing process rather than a one-time fix. As the gaming industry evolves, so will the needs and preferences of its global audience. Continually refining your checkout strategies can boost player retention, increase revenue, and foster long-term customer loyalty. This is where Xsolla Payments comes in. As a comprehensive solution, Xsolla offers over 700+ supported payment methods across 200+ geographies. With tailored localization options and robust anti-fraud measures, players can feel secure when completing transactions with a checkout system that is familiar and easy to use. Xsolla Payments goes beyond providing developers with a streamlined checkout system. As a merchant of record, Xsolla manages compliance for all the regions your players live in so you can focus on what you do best—creating exceptional gaming experiences. With Xsolla as your trusted partner, you can create a seamless checkout that keeps your players engaged and returning for more. Ready for a curated payment strategy for your game? Schedule a meeting with an Xsolla expert or create a Publisher Account to get started today.Featured articles
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