SAN FRANCISCO, CA | GlobalCollect, the world’s premier payment service provider, announced yesterday 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 is available for download at http://www.globalcollect.com/payment-service-provider/Knowledge-center/