To say that the gaming industry is huge is an understatement. According to Statista, “revenue within the gaming industry has exploded” over the past several years.
In 2020, worldwide revenue peaked at $17.8bn (USD) for premium console gaming (such as Playstation, Nintendo and Xbox) and $22.7bn (USD) for free-to-play PC games. The staggering numbers are due to the implementation of three distinct monetization models:
- Traditional purchases (such as when consumers merely purchase the game itself)
- In-game advertising (most notably for mobile games)
- Microtransactions (which players spend money within the game itself)
While the top two are not surprising, it’s the third one that has become a decisive revenue driver over the past several years, with many popular games adopting it.
Let’s look at microtransactions, note some examples, and why the right payment method is crucial for its success.
Our Guide to Microtransactions in the Gaming World
What are Microtransactions?
A definition of microtransactions as defined by the Intelligent Economist is:
“Microtransactions are in-game purchases that unlock specific features or gives the user special abilities, characters or content. The purchases are virtual. The cost of these transactions can range from $0.99 to $99 (possibly even more).”
In other words, microtransactions are objects or goals you need to accomplish to complete the game. And for many games, it’s a necessity.
Examples of Games with Microtransactions:
Here are some of how the biggest games in the industry have implemented microtransactions:
- FIFA – one of the biggest video games globally – uses “microtransactions as part of its FIFA Ultimate Team mode, which allows you to use FIFA Points to buy card packs that offer randomized rewards. (You can buy 500 FIFA Points for $5.)”
- Mario Odyssey – Nintendo’s most famous game series – uses Amiibo “a toys-to-life platform” that connects to the video game you’re playing, allowing you to get “new outfits, power-ups, or other fun bonuses.” Most of Nintendo’s new games now include this feature.
- “CS:GO [Counter-Strike: Global Offensive] is a first-person shooter that introduced skins for its guns. This added an entirely new economic dynamic to the game. At the end of each game, players were awarded random crates of weapons, and they could only be opened with a key that cost $2.49.”
- Fortnite – an online PC game, which is very popular with a younger audience – “uses an in-game virtual currency called “v-bucks” that its players can either earn through gameplay or purchase using real cash (or credit). V-bucks are used to purchase items such as skins and to unlock several hidden features within the game.”
As you can read above, many of the biggest games have included microtransactions through various forms. Ultimately, the goal is to generate a consistent stream of revenue to maintain sales, as opposed to the old-fashioned “one-off” purchase that previously accompanied games.
In the middle of it all is the payment system that allows users to make purchases – and it’s crucial.
If you’re in the gaming industry – and looking to get your game to reach these dizzying heights – you’ll have to safely and securely implement payment solutions for your users. That all starts with choosing the right payment solution provider.
Choosing the Right Payment Solution Provider
How your gamers interact with the payment system within your game or app is significant. Any issues with submitting payments, delays or “unable to accept payment” notifications will affect the reputation and success of your game.
You, therefore, need to find a payment provider that can safely and securely implement payment solutions while catering to the needs of your users.
Find a provider that can:
- Offer you various payment solutions, including EFTs (electronic funds transfers), card issuing solutions, virtual wallet products, and even cryptocurrency options so that you can cater to the maximum number of users. This should also include subscription and membership payment solutions.
- Deliver fast, easy, and most importantly, safe online transactions. Security is the decisive factor here, so consider their online and technological measures when learning about their products and services.
- Integrate their payment products into your online platform or mobile application with development services. If the provider can implement their technology and systems within your game or app, it can streamline your operations.
The Bottom Line
The numbers speak for themselves: microtransactions in the world of gaming are here to stay. More and more games, both online, on consoles and mobile, will include microtransactions. As it’s a powerful revenue driver, it’s hard to see why developers won’t include it as part of their games in the future.
Therefore, developers need to implement the right payment solution that supports their game and their users. The better and more secure the payment solution, the more effective companies can drive revenue through microtransactions.
Pateno can help you with that.
Pateno is the only business payment solution you will ever need. Our innovative payment solutions ensure a more streamlined, secure and flexible way to transfer money. Via our API technology, you can initiate payments from existing web pages, portals, and apps, scaling your capabilities as your industry changes. From tip disbursement to loan management payments, our highly intuitive and simple-to-use system can be easily integrated, instantly enhancing and streamlining your money transfers. Contact our sales representative to learn more today.