Original research shows critical importance of alternative payment methods for monetizing free-to-play games, accounting for 37% of revenues
San Francisco, California (Game Developers Conference 2013)–?March 26, 2013 – GlobalCollect, the world’s premier payment service provider, today announced the publication of its report“The Shifting Video Games Landscape: Payments, Intelligence and Trends.” The original research is based on GlobalCollect’s extensive gaming transaction data as well as data from international gaming market research firm Newzoo. GlobalCollect is widely acknowledged as the recognized leader for payment services in the video gaming industry, giving it a wealth of historical data on which to base the analysis conducted in the report.
The report highlights the dramatic changes currently taking place in the gaming industry, ultimately driven by consumers. The free-to-play business model, uptake of mobile screens and continued strong growth in emerging markets have pushed up the number of (paying) players and time spent. Money follows these early growth indicators, illustrated by the healthy global growth rate of 7%.
Key findings that will be of interest to games publishers are:
- <*>Payment method usage is closely linked to game monetization models. Free-to-play games globally see 34% volumes of sales with alternative (non-credit card) payment methods.*> <*>Alternative payment methods account for 32.3% of all European gaming payments. Without offering a range of these methods, merchants will not maximize revenues.*> <*>The emergence of midcore gaming (games that are in between what we traditionally call‘casual’ and‘core’ games) is evident, with transactions growing by 7% between Q1 and Q4 of 2012. This growth was at the expense of hard-core gaming transactions, with the share of transactions falling by 6%.*> <*>Merchants can maximize credit card authorization rates per country by using multiple, localized card acquiring channels and utilizing historical transaction data.*>
“Presenting accurate and visually appealing data allows gaming merchants to clearly identify trends and outliers in their own payments performance and ultimately take action on the insights provided to increase revenues,” said Nathan Salisbury, GlobalCollect’s global market director for Video Gaming.“Our objective is to help elevate our clients’ payment operations into a strategic asset for their companies, and this research is just a small example of how GlobalCollect can help gaming companies‘level up’ their payments strategy.”
Peter Warman, CEO of Newzoo:“The research clearly shows that payment method cultures are divided by national borders. In certain countries, alternative payment methods can make up as much as 80% of the sales volumes. Developing a deep understanding of these differences and crafting a payment strategy around them is critical to the success of international gaming companies, and our co-operation with GlobalCollect is aimed at providing exactly this.”
GlobalCollect processed more than US$14 billion in transactions for international e-commerce companies in 2012, representing some of the world’s most recognized tier-1 brands. The company’s video gaming-related revenue rose by more than 40% in 2012.
The free report?and other gaming payments resources are?available for download at http://gaming.globalcollect.com.
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GlobalCollect is the world's premier Payment Service Provider of local e-payment solutions for international Customer Not-Present (CNP) channels such as internet, mail and telephone orders, and specializes in a wide range of industries such as travel, ticketing, telecommunications, retail, publishing, portals, online gaming, and digital content. While most providers limit their services to a technical link with payment acquirers, GlobalCollect is a full service partner consulting clients on how to increase transaction volumes, expand distribution channels, and reduce costs by streamlining back office processes.
Through a single-interface online payment platform, we offer access to an unrivaled portfolio of local and international payment methods in over 170 countries and 170 currencies, including all major credit and debit cards, direct debits, bank transfers, real-time bank transfers, eWallets, cash at outlets, prepaid methods, checks, and invoices. For more information please visit: www.globalcollect.com and follow us on:
- <*> www.linkedin.com/company/globalcollect *> <*> www.twitter.com/Global_Collect *> <*> www.facebook.com/globalcollect *>
Newzoo is an international market research company focused purely on the games industry. Newzoo provides the best independent consumer market data across all game platforms and business models. Our combination of activities gives us a deep understanding of the global games industry and ensures we are always ahead of traditional market research companies. Newzoo’s clients include Kabam, Blizzard, EA, Gamehouse, Microsoft, SpilGames, GlobalCollect and Wizards of the Coast.
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