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Payment methods around the world is being disrupted even in the video gaming world. According to a study by WorldPlay, around 49% of video gamers have purchased an app-based video game in the past year.
According to the global payment processing company, the current global trend show consumers are increasingly using alternative payment methods to purchase video games instead of credit or debit card.
In a whitepaper titled, Video Games Payment Preferences, that polled 7 554 consumers that have purchased video games online, WolrdPlay found that “alternative payment methods are used by 51% of video gamers across the globe, compared to 46% that use credit and debit cards”.
According to the company the study also found that the highest users are consumers in the emerging markets, with 79% of consumers in China and 71% in Russia making video game purchases using alternatives.
“E-wallets have largely driven the increase in alternative payment usage, comprising 27% of overall transactions – largely driven by online video games purchases, and the purchase of modifications and expansions to existing games. Although this equates to just over a quarter of transactions by volume, it indicates the rapid growth of a relatively new payment type,” says WorldPlay.
There is a growing trend around app-based purchases particularly in South Korea with 44%, the United States see around 26% of purchases, Russia 26% and India with 37% all leading the purchases of app-based video games. According to WorldPlay the average transaction value of app-based video games was found to be US$11.14 per transaction, compared to console-based games, which command an average price of US$21.50 per transaction (rising to US$39.63 in Brazil).
Payment methods and choices are still primarily driven by convenience and safety according to the report. Apparently 72% of respondents wish to save payment details for quicker future purchases, while 80% generally use the same payment method for all types of content.
Around 62% of the video gaming populace that was polled make their choice around the protection of personal payment details. A further 53% make their payment base don whether merchants are able to assure gamers that their personal information is being kept private.
The research suggests that e-wallets are seen as more secure than other payment methods by consumers (34%), while most consumers suggested they are ‘very concerned’ by how well they felt credit cards (35%) and debit cards (32%) would secure their details.
Colin Murray, VP Video Games, WorldPay says that:
The payment landscape is changing rapidly and while credit and debit cards are still heavily used by consumers, we are seeing an increasing number of video gamers seeking alternative payment methods. These preferences vary by geography but increasingly consumers are choosing e-wallets to make purchases with the perception that this method is more secure, reliable and efficient than credit or debit cards. With the rise of in-game purchases, we can expect to see further developments in this sector and merchants therefore need to review their payment method portfolio and consider implementing alternative payment methods to meet this growing consumer demand. Merchants must ensure that they are responsive and flexible to consumer wishes — keeping their payment strategy front of mind — to ensure maximum transaction success.