The Right Payment Method To Thrive In The Video Gaming Industry?
There is no easy answer to the question of what payment method is best to be successful in the iGaming market. It all comes down to understanding gamers and what their preferred payment method is.
This means it’s not always straightforward. As a gaming operator you may have any number of different gaming personas; individuals of different ages, genders, platform preferences etc., and all these factors will influence the payment method they want to use.
We recently conducted a survey of 2,000 UK gamers exploring their payment preferences based on key variables. To get these insights you can download our report here.
Optimising Payments For Gaming Personas
Here we outline some steps you can take to optimise the payment journey for gamers. We recommend that different payment methods are offered depending on the following variables. A one-size-fits-all approach will only work if you have a very targeted offering.
Step 1: Identify Your Gamer Personas
Individual games are generally designed for specific gamer personas, and this will help you identify the most appropriate payment methods. Key factors will include: gender, age, preferred platform, type of gamer (casual, keen, hardcore).
Key takeaway: From our gaming survey we discovered that debit cards are the most popular payment method in the 18 – 24 age group among UK gamers.
Step 2: Prioritise The Gamers You Wish To Attract
Where a game has wider appeal it is important to optimise the payment journey for the preferred gamer. This will depend on things like spending behaviours and risk of fraud or chargebacks. Certain gamer personas are a higher risk for gaming operators than others, but they may also spend the most.
Key takeaway: Secure Trading’s survey revealed that Xbox gamers spend the most on gaming each year: £151 p/a.
Step 3: Factor In Regional Payments Preferences
While debit cards may be the most popular payment method for young people in the UK, that may not be the case in other parts of the world. Localised payment methods are essential for cross-border transactions and therefore it is important to create gamer personas for each market.
Key takeaway: German gamers use PayPal as their primary payment method – www.ecommerce-europe.eu
Step 4: Optimise The Payment Journey For Each Platform
Gamers playing on a mobile device have a very different experience to those playing on a PC or console. Payment journeys need to be optimised for each platform, or at least for the platforms the preferred gamer persona uses. Mobile gaming continues to see rapid growth and is an exciting opportunity for gaming operators, but it also present unique challenges for security and conversion.
Key takeaway: 55% of UK gamers primarily use a PC for online gaming, however mobile gaming revenue is predicted to pass console and PC this year.
Step 5: Keep Reviewing The Data
We are seeing unprecedented innovation in payments and technology, and this is changing gamers’ behaviour almost overnight. Therefore it is important to get a good understanding of sales across different gaming platforms (and gamer personas) and analyse metrics such as transaction types, authorisation rates, conversion rates, transaction times, and other KPIs aligned with the operator’s objectives.
Key takeaway: In our survey we found that 20% of UK gamers are not confident that their payments made through gaming platforms are secure. This is a significant factor in conversion rates and demonstrates the importance of optimising payment methods for the gamer persona, gaming platform and region.
For more gaming insights download the report: Online Gaming And Fraud Report