Online Gaming Merchant Account: Turn Players Into Payers
The online gaming market is rapidly growing, so gamers are more aware of what they can expect from gaming platforms and infrastructure providers. But, with a reliable online gaming merchant account, you can get the most out of your business. See what you can do to turn players into payers.
According to Statista, the online games segment reached $11,978,000 in 2019 and is expected to hit $13,203,000 by 2023. With smartphone penetration rates growing, there’s huge interest in mobile games, which gives gaming companies a chance to attract more customers.
The main thing that attracts customers is a smooth experience from start to finish, including the process when people spend money on in-game purchases. So, what you need is a decent payment gateway for online gaming.
User experience is the main driver
Fast performance is a top priority for gamers, so online gaming merchants need to create a user interface that will help users immerse themselves in the action that happens on the screen.
So, what can you do to provide a superior user experience that will help you win over more customers?
While it goes without saying that the game itself needs to work fast and without hassle, merchants don’t always perceive payment flow the same way. But, imagine a situation when an online game is interrupted by a long and complicated payment process. How do you think this will affect the gameplay and overall player experience?
Purchasing in-game items or power-ups should be as intuitive as possible without redirections, distractions, or unwanted surprises. When online gaming payment processing is slow, it affects the user’s entire experience. Naturally, gamers want to enjoy a smooth experience with quick and simple payments without having to pause the game.
This is why you need to make sure that the payment gateway for online gaming which you’d like to work with will deliver top-level usability and enhanced user experience, giving you the competitive edge.
Tech-savvy payment gateway for online gaming
Speaking of user experience, a lot depends on the technology used to design the gaming process. Naturally, you don’t want to drag your game down because of a sloppy user interface, so why would you do the same with the payment process, which is an integral part of the gaming experience?
One of the most important things to consider when choosing a payment gateway for online gaming is fast integration, which shouldn’t take more than a few hours as well as customer-focused design.
Before going live, test your setup to make sure that your checkout is fast and secure and doesn’t disrupt the gaming process. Do everything in your power to cut out anything that slows down the process.
Also, ask your future online gaming payment provider for quick and simple one-click payments to complete in-app purchases without redirecting gamers to external services.
Why is this essential?
According to The State of Online Gaming 2018 report by Limelight Networks, people globally spend more time playing on mobile phones than on computers, tablets, or consoles. So, bearing in mind that gamers like to play on the go, they need extremely quick and simple in-app payments.
Think about the extra features that add value to your online gaming business, such as AI-based processes or cross-selling. Analyzing gamers’ behavior, you can take advantage of cross-selling by displaying personalized offers to them. When the next purchase is just one click away, without the user having to quit the game, it increases the chances that your gaming platform will bring in extra earnings. It can also help to improve customer loyalty.
Moreover, gamers want to have a choice of payment methods and are keen on using solutions that give them more convenience.
Cybersecurity in gaming
Gamers value their privacy, so besides the UX, they pay attention to the security of their data. The aforementioned report by Limelight Networks shows that gamers are concerned about online security and more than 50% of them would stop making purchases or playing games on a website that has been affected by a security breach.
They are aware that any data that isn’t securely stored or well encrypted can be used maliciously by attackers. And, bearing in mind that for the most engaged gamers their virtual assets and accomplishments are a testament to their dedication and skills, data security breaches are a real concern.
According to What Turns Players Into Payers report by Newzoo, 1/3 of paying gamers are less likely to spend money within a game because they worry about the risk of fraud.
Chargebacks in online gaming
According to the ThreatMetrix Gaming and Gambling Cybercrime report, there is a fraudster behind one in every 20 new accounts created on online gaming websites. When fraud becomes a real concern, there’s a higher number of chargebacks.
Speaking of chargebacks, another threat for online gaming businesses is friendly fraud that occurs when a cardholder files a chargeback without even trying to approach a merchant for a refund. However, note that this can also be the result of not being able to recognize a merchant’s descriptor on a bank statement.
Card testing fraud
The online gaming industry also faces card testing fraud. Typically, this happens when fraudsters use stolen cards to make frequent low-value purchases. If your system doesn’t block such card testers, you need to prepare for a number of chargebacks from credit cards’ real owners.
To prevent card testing, you need to have anti-fraud tools in place, or simply work with a gaming payment gateway that delivers such solutions. With well-conducted velocity checks and smart behavioral tracking, the system will spot card testing automatically, in mere seconds.
The need for prevention tools
The topic of security in online gaming also concerns the digital persona, as playing games usually leads to developing relationships with other players. So, when an account is compromised, it can have disastrous effects on gamers’ social life.
As there are different types of games and gaming services, there’s no one-size-fits-all security solution that will cover every business need equally. This is why it’s immensely important to find a payment gateway for online gaming that can provide you with a flexible solution that simply adjusts to the specifics of your gaming business.
Secure payment gateway for online gaming
You should also ask for tokenization, which reduces the risk of security breaches without affecting the gaming experience.
What you need is a payment platform that uses multilevel security with AI to create dynamic rules that adjust to the industry, thus are more accurate than static rules. All of these features can be provided by a payment processor at no extra cost.
Also, note that with a reliable payment platform you don’t have to think about the burden of having to comply with PCI requirements.
Concern about payment fraud makes people less likely to spend money when playing a game. That’s because they share their sensitive personal data, so they need to feel confident during the process, or they will either quit the game or only stick to its basic free version.
Countering subscription churn
Besides the most common benefit of subscription payments for business, namely, better cash flow, there are also reduced declines or an uninterrupted gaming experience. These result in customers playing more games and spending more money.
At the same time, online gaming companies are concerned that they will have to fight and reduce churn connected to subscription-based payments. In other words, they look for a solution to keep paying subscribers around for longer.
Churn is the number of subscribers that stop paying for your product or service, and there could be different reasons for that. It can be intentional, as a customer no longer wants to use your service, or churn may occur when the gamer’s card becomes outdated or there aren’t sufficient funds on it. So, if you don’t take any action (with the help of the right tools), you’ll probably lose customers. What you need to do is spot failed payments before the membership ends.
Approximately, 67% of churn is the result of bad user experience, so if you design your payment flow with users’ needs in mind, you’ll keep customers closer.
Another thing that is equally important is providing gamers with a smooth transition from freemium to premium. But, the same goes for subscription termination. If the process of cancellation will be too difficult for gamers, subscriptions may turn into chargebacks.
The things to consider when choosing an online gaming merchant account
A decent online gaming merchant account will let you handle both payments and local regulatory challenges. Before you decide which market player to choose, make sure that you can also accept all major cards and that the account will come with technology that will give your customers a smooth experience without hassles and downtimes.
Newzoo’s report finds that 44% of gamers believe that the payment processes in games should be improved, while 32% of gamers in the UK reported having a bad experience because of a slow payment process.
Keep in mind that online gaming might be considered as a high-risk business because of the high volume turnover and the industry’s background. It also comes with the potential for numerous chargebacks, so you’ll need a high-risk merchant account — make sure that the payment platform you choose to work with offers one.
Search for an online gaming merchant provider that allows customization of every payment element to fit your business needs, as well as gaming traffic.
The challenges of selling to a global audience
Online and mobile games connect people worldwide, so bearing the global nature of the industry in mind, having a payment gateway for online gaming that allows merchants to accept payments globally is a must.
Providing customers with payments in various currencies across different time zones is a piece of cake when you choose the right payment platform.
While looking for an online gaming merchant account and a payment provider that will let you accept payments from international gamers, consider things, such as:
Gamers who can pay in their preferred currency without interruptions or redirections are more likely to make purchases. Responding to your customers’ needs is what shapes the overall experience and builds long-lasting relations.
Make a wise decision
Fast performance is the most important factor for online gamers, but gaming platforms should also remember the need for providing an uninterrupted and secure payment experience.
Gamers are keen on using convenient digital payment methods, which make buying virtual goods seamless and hassle-free. This is why payments need to be part of the gaming experience, not a separate feature.
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