There is no doubt in the financial world that the Internet has truly revolutionized how we do business; as more and more companies migrate online and e-commerce is booming with multinational giants like Amazon expanding across continents, interest in alternative payment methods is soaring. Yet there is one niche market that really did it first. Online gaming companies have long turned to alternative payment methods in order to accommodate players – and we might have a thing or two to learn from their experience.
Why Do Gamers Prefer Alternative Payment Methods?
‘My home office’ by Paladin (CC BY 2.0)
As online games become more and more popular, their appeal spreads across a wide range of countries – all with different financial and banking systems. There are more than 170 million active gamers in the US, which means that over half of the population play online games, and around 60% of the population buy online gaming content – whether it is a new title to add to your collection, a permanent subscription to a console, or even in-game content like upgrades or cosmetics. Roughly 50% of those who spend money use their credit cards to do so but alternative payment methods are on the rise and on their way to surpassing credit cards, with PayPal currently occupying 27% of the US market and 37% of the UK market, while it has established a strong presence in rising markets like Russia (9%).
Online gaming seems to be the perfect ground for trying out different payment methods, as the gaming community is quite global, bringing together players from all over the world. Therefore, gaming service providers have to accommodate players based across different national banking systems, and offering alternative options is the best way to do that. Services like PayPal cut through the red tape and offer convenient and fast payment methods to avoid frustration, while gamers are usually more open with new technology and thus in a better position to test out payment methods that they are not familiar with.
The importance of alternative payment methods in the online gaming industry
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Especially in iGaming, ease of payment is important and players appreciate a variety of payment options. For example, in online casino games like slots, baccarat and blackjack, the gaming experience revolves around fast gameplay and the thrill of betting. Gamers get frustrated when they have to wait to play another round of their favorite casino game because they cannot easily deposit money or cash out on prizes. Bonuses, promotions, and progressive jackpots are often offered as an incentive for online casino pl ayers – especially in those cases, it is important for gamers to be able to access their money securely and quickly. Looking at an example, 888casino accepts debit and credit cards as well as more exotic options like ApplePay, EntroPay, iDebit and WebMoney.
E-wallet service providers are quite popular in this market, with Neteller and Skrill being on the top with regard to online casino games – most online casinos, support both these methods. These two providers are also the oldest and most widely accepted on online gambling sites. Recently, they established a connection that allows players to move money between their accounts on both Neteller and Skrill. Players tend to prefer e-wallets such as these because they can connect just one card used for gaming. Then, they can use the same card across most online casino gaming platforms.
Online Multiplayer Games Break New Ground
‘League of Legends’ by yxxxx2003 (CC BY 2.0)
If online casino games really put alternative payment methods on the map, it is perhaps online multiplayer games that will push them even further. This type of game brings together gamers from all around the world and they need to provide a variety of payment methods to accommodate different regions. For instance, extremely popular multiplayer games like League of Legends offer different payment options according to the region that a gamer has chosen to play on.
PayPal remains very popular but other payment methods that revolve around mobile payments are gaining ground, like Boku. Boku is a platform that allows users to pay through their mobile number and have the costs added to their phone bill. In recent years, cryptocurrencies like Bitcoin have started to become more widely accepted as payment – especially in online casinos that let players pay deposits through their Bitcoin wallets.
Many features that helped boost alternative payment methods in online gaming, like a globalized market across different banking systems, hold true for e-commerce, too. And, as e-commerce continues to grow, it is certain that alternative payment methods will become more and more relevant for many consumers.
