The future of game payments: exploring industry trends and innovations

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The future of game payments: exploring industry trends and innovations

August 22, 2024•6 min

Game payments are changing

Remember when gaming meant heading to the local arcade to beat high scores? Or making trips to the nearest store to buy the latest game cartridge or CD? The way we discover and purchase video games has seen a fast-paced transformation since those days. With a new norm that involves browsing digital marketplaces and shopping for games online, players today prefer the convenience of accessing and purchasing games from the comfort of their homes. This shift, driven by the rapid growth of accessible technology, has driven the growth of online payment systems. However, it’s also introduced new challenges for game developers, especially when it comes to payments. With players spread across the globe and a diverse range of purchasing preferences, creating a seamless and secure payment experience is crucial. Let’s explore the innovations and changes to game payments and how Xsolla can empower you to create a strong payments system that’s built to last. Increased payment variety One of the biggest trends in the payments sector is the surge in payment options beyond traditional credit and debit cards. Ewallets, mobile payments, bank transfers, direct carrier billing, and more – driven by the increasing demand for convenience, security, and localized payment methods – are all common ways for gamers to make purchases now. Gamers worldwide exhibit diverse preferences, which is why gaming marketplaces are partnering with alternative payment providers to offer a wider array of payment options and cater to these evolving needs. Some of these payment options include:

Ewallets. Gone are the days when credit and debit cards were the only payment options. Digital wallets, or ewallets, for example, offer speed, security, and convenience for gamers to store payment information and make purchases. Popular digital wallets include PayPal, Apple Pay, and Alipay.
Mobile payments. Mobile payments leverage the ubiquity of smartphones to provide a quick and easy way to buy and sell. They offer convenience, security, and often integrate with other mobile services, making them one of the most popular choices for gamers. Samsung Pay, for example, is a mobile payment and digital wallet service that works with Samsung devices and allows users to make secure and contactless payments in-app and online.
Alternative payment methods. Beyond traditional methods, alternative payment options cater to specific regional preferences and address challenges like limited access to credit cards. They offer flexibility and convenience to gamers who may not have access to traditional banking or prefer cash-based transactions. Common examples include prepaid cards, cash payments, digital vouchers, and more.
Bank transfers, direct carrier billing, and more. For regions with limited access to traditional banking and credit cards, options like direct carrier billing and alternative payment methods become crucial. Bank transfers allow users to transfer funds directly from their bank accounts to the game publisher, providing a secure and convenient payment method. Direct carrier billing enables gamers to charge purchases to their mobile phone bill, offering flexibility and accessibility.

One of the key benefits of this diversification is the localization of payment options. By offering payment methods that cater to the preferences of players in specific regions, you can increase player satisfaction, reduce friction in the checkout process, and ultimately drive revenue growth. Xsolla has an extensive network of payment providers that ensures that you can offer your players the most suitable payment options, no matter where they are located. The trust factor A recent study revealed a crucial factor in gamer decision-making: trust. In a report from ACI Worldwide, 38% of gamers across the US, UK, and Germany indicated that they prioritized trust when choosing their online payment methods. This highlights the importance of secure and reliable payment options for building your players’ loyalty and fostering a positive experience with your game. Gamers need to feel confident that their transactions are safe, their personal information is protected, and they won’t encounter issues like fraud or unauthorized charges. When these concerns are addressed effectively, players are more likely to return to your game, engage more deeply, and even recommend it to others.

Creativity in a robust industry

The gaming industry has become a powerhouse of creativity and innovation, constantly pushing the boundaries to keep players engaged and invested. Developers and publishers are continuously exploring new ways to enhance player experiences, increase customer retention, and drive purchases. Whether through immersive storytelling, innovative gameplay mechanics, or personalized in-game rewards, the industry is finding creative ways to keep players coming back for more. One of the key strategies driving customer engagement is the integration of subscription models and live service games, as well as the rise of community-driven content.

Subscription models. Subscription models are becoming increasingly mainstream, offering the consumer a return to the “pay for access” model of the arcade with more convenience. In fact, subscription gaming payments hit approximately $16 billion in 2023 and will grow by 40 percent by 2027, according to J.P. Morgan payments.
Live service games. Driven by both player demand for ongoing content and the undeniable financial success of titles like Fortnite and Apex Legends, developers are increasingly adopting this model. With 50% of the top 25 grossing gaming companies now publishing live service titles, this increased adoption is fueled by the desire to create long-lasting experiences that increase player engagement and generate sustained revenue.
Community-driven content. Players have become more active participants in game creation, creating and sharing their own in-game assets. This has led to a surge in user-generated content and fostered an ecosystem of creativity. From intricate mods and custom maps to entirely new game concepts, player-driven content is redefining the boundaries of what games can be.

Xsolla: your partner in game payments

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Whether it’s staying ahead of industry innovations or finding solutions to the challenges and opportunities of payments in gaming, Xsolla is committed to being your expert in global video game payments and commerce in times of change. Our focus on seamless checkout experiences and robust security measures empowers you to navigate the game industry with confidence. Xsolla goes beyond basic payment processing, with decades of game industry-specific experience in understanding and curating the right payment solutions for you. With Xsolla Pay Station offering access to over 700 payment methods and 240 alternative payment methods across 200+ regions, our team ensures your business will be able to cater to a global audience with diverse payment preferences. The Xsolla Payments solution also enables you to:

Streamline your users’ checkout process with an intuitive, multi-platform interface that seamlessly integrates with mobile wallets.
Safeguard up to 99% of transactions with Xsolla Anti-Fraud, our industry-leading solution tailored to the video game industry, and improve your profit margins by reducing chargebacks and increasing acceptance rates.
Promote your brand seamlessly through a customizable interface and flexible integration options that align with your game's unique look and feel.

Xsolla’s robust payment infrastructure and technology ensure that your payment system is scalable, secure, and compliant with regulations, while seamlessly integrating with other business systems. This means that as your business grows, Xsolla can handle increasing transaction volume to provide a cohesive and efficient payment process.

Ready to strengthen your payments?

With our range of tools and tailored payment solutions, you can drive more traffic to your games and create a seamless checkout experience that keeps your players engaged and coming back for more. Talk to our experts to see how Xsolla can help elevate your checkout process, try our demos to experience Xsolla Payments in action, or register with a Xsolla Publisher Account to get started.