Gaming Companies Are Using Payments For Competitive Advantage

How Do Gaming Companies Use Payments for Competitive Advantage?

The gaming space is buzzing with activity on an unprecedented scale. One measure of this comes from news like how the upcoming Grand Theft Auto VI’s trailer became the most-watched one of all time! Although less than two minutes long, the video attracted 93 million views in a single day!

It’s no surprise. In 2023, there were around 3.22 billion active gamers across all platforms. This number will jump to 3.32 billion this year. Gamers are also investing more heavily than ever before in their virtual spaces. In 2024, the gaming industry is all set to sit atop $282 billion, and it will grow by a factor of 8.76% every year until 2027.

A big part of this revenue comes from in-app purchases and online transactions for accessing videogames digitally, i.e., via Steam, PSN, etc. The ease of payment has indeed left its mark on the industry, especially after the COVID-19 outbreak. Now, gaming companies are eyeing competitive advantages via simpler payment options!

Payment Failures Hurt Gaming Companies More Than The Players

Most gamers like to invest in virtual in-game purchases and perks when signing up or shortly afterwards. They’ll pay real money for an edge in the game. Or they’ll transact online to get a copy of the game (if it is not a freemium). But these payments are not always successful.

Gaming payments can fail:

• If they get flagged by the recipient’s system.
• Due to technical errors or glitches.
• Simply due to a mistake/error on the part of the payee.
• Insufficiency of funds in the account.

A poor payment protocol eats away at profits! Think of it like this – it’s money on the table, but not yours. Just because of a technicality. To mitigate such losses, gaming companies are turning to machine learning and more streamlined online payment protocols.

But simpler payment protocols are vulnerable, which brings us to the second big problem at hand.

Fighting Online Scams

When there’s money involved, fraudsters and scammers will inevitably find their way into the story. The gaming industry is no different, and if companies are to grow consistently, they need to keep their customers safe from financial attacks.

Here’s how these scams usually happen:

• Friendly Fraud – this happens when someone fraudulently disputes a purchase they made (they might claim that they did not do it or that they paid for it but did not get it) and demand a refund.
• Card Testing Attacks – since in-app purchases for most online games are only minimal, scammers often try out stolen credit cards on small purchases here before selling them in the black market.
• Real Money Trading – this is not necessarily a fraud, but it can sometimes. In the latter scenario, the scammer offers certain in-game items for money. But not in-game money, real cash. Once they get the money, they disappear without a trace.
• Phishing – a scammer can trick you into revealing your sensitive information and then use that information to take over your account and then use it to scam others as well.

To better fight such attacks, a multi-faceted approach can work best:

• Gaming companies can better shield their users’ data by offering to use payment IDs instead of card data when paying.
• Card issuers can help combat online fraud via soft declines and verifications.
• A system akin to MID reputation should be employed when giving access to online banking.
• Younger demographics should be educated about the risks associated with online fraud.
• Gaming companies should improve communication with their players, especially regarding the terms and conditions.

The safer this whole thing gets, the more we can count on players to spend money confidently. This will inevitably lead to better profits and growth for the gaming company.

Making Payments Simpler Without Risking Security

Gaming companies, especially those that stick to the freemium model, are making online payments as simple and versatile as possible. The goal is to let players seamlessly jump into their next quest, fully loaded for the adventure that awaits them.

How Can They Do So?

One option is to choose online pokies with PayID in Australia. This is a compelling example of increasing the security of online transactions:

• Australian PayID-equipped casino users benefit from a simplified payment process. They no longer use physical payment cards for quick purchases in games or quests. They can also play Big Red Pokies without any problems.
• Simply enter an identifier (which is a phone number or email address) and the transaction is done.
• The player gives no chance for fraudsters to get hold of his data or steal the physical card.
• In addition, this system keeps transactions convenient and fast, ensuring a seamless gaming experience for the participants.

Final Words

This is pretty much it. The online payment experience for players is projected to improve in the coming years. Gaming companies can benefit vastly by optimizing friction and safety to find the perfect sweet spot where players are safe and free to transact!

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