Digital game revenue will surpass $100B for the first time in 2018. Gathering this revenue requires companies to offer consumers payment options they prefer. Games consumer preference has shifted away from the multi-step, cumbersome offerings of the past, into streamlined e-wallets and localized payment methods. With this shift towards increasingly integrated digital payments, the result has been a better process for gamers, and increased revenue for publishers.
Understanding the options that consumers are comfortable with and prefer is vital for optimizing publishing efforts, especially in a digital economy where smaller, ongoing transactions are becoming the norm. In our research on payment preferences, we take a big data approach to establish the top payment methods for online gamers on a country level. By analyzing 330 million digital transactions worldwide, this new report identifies the top methods of payment used by gamers in each of the 40 major markets. Building on a dataset that goes back over a decade, we have unique insight into how online gamers like to pay.
This report covers payment preferences of online gamers in the following 40 countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Finland, France, Germany, Greece, India, Indonesia, Israel, Italy, Japan, Mexico, Netherlands, Norway, Peru, Poland, Portugal, Romania, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Turkey, United Kingdom, Ukraine, United States, Venezuela, Vietnam
The report examines these 55 payment brands: 99Bill, Alipay, Alipay, AmazonPayments, Amex, Bitcash, Boa Compra, Boleto Bancario, Carte Bleue, cashU, Cherry Credits, China PNR, ClickandBuy, Cultureland Game Card, ePagado, Giropay, Global Collect, Google Wallet, GS Cash, GT Card, Happymoney, HiPay, HiperCard, Internet+,Japan WebMoney, JCB, Konbini, Maestro, Mastercard, MC, MercadoPago, Mikro Odeme (3pay), onecard, MOL, Moneybookers/Skrill, neosurf by NeTeller, Pagseguro, PayByMe, Paymentez, PayPal, Paysafecard, Postepay, QIWI, RBK Money, Rixty, Skrilll, Sofortuberweisung, Tenpay, Ukash, Ultimate Game Card, Unionpay, Visa, Webmoney, Yandex.Money, Zong
This new report builds on SuperData’s industry-leading research on payment methods, the users, and the service providers. The following are some findings from our analysts on the digital payment industry and its consumers:
Game publishers and platform providers with a global strategy must account for country-specific payment brands like Boleto Bancario (27.9% of the market in Brazil) and Alipay (20.8% of the market in China).
Local brands have built up durable market shares in regions where credit/debit cards and Western eWallets are less well-suited to the needs of consumers. While incomes are rising quickly in markets like China, this does not mean existing consumers will switch over to brands like PayPal and Visa anyMme soon. Consumers have had years to develop brand loyalty to country-specific payment services. In China, using Alipay is as second nature as using a credit card is in the U.S. Digital game storefronts are better off supporting a wide range of payment methods now instead of hoping for consumers in emerging markets to change their payment preferences in the coming years.
Apple and Amazon’s eWallets have a combined U.S. market share of 9.9% and are putting the pressure on PayPal.
PayPal continues to be the market leader in payments, but its share is dropping. Apple and Amazon both have the advantage of a massive audience for their devices and services. Consumers already trust these businesses and are accustomed to their user experiences. They are more comfortable trying an Apple payment brand for the first Mme than they would a new third-party payment method. Consumer tech giants with a payments product are able to encourage use through simple tactics like featuring the logo of the payment service prominently in the user interface.
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