This article is a VB Lab Insight article by Xsolla.
Developers need to find new ways to allow players to interact with their favorite games as the gaming industry expands. Subscriptions, microtransactions, and the emerging market of digital assets all require seamless payment experiences for both sides. Jen Premisler, SVP Fintech Solutions, Mastercard, and BerkleyEgenes (CMO at Xsolla), sat down at GDC 2023 to discuss the challenges gamers face when making in-game payments and how next-generation loyalty and payment technologies will make it seamless, secure, and rewarding.
Five years ago, Mastercard began a sponsorship with Riot Games. This partnership allowed Mastercard to expand its reach into the esports market. It also provided a closer look at how payments work in the gaming ecosystem across all game genres and platforms. Premisler stated that Mastercard has now been able to partner with Xsolla to increase its value and address the major challenges in setting secure payments for players.
She explained that “early on, we recognized somewhere between 4 and 5 high-level pain points we could address.” “In addition to providing payment experiences and cyber fraud detection capabilities, loyalty and data services are our other sweet spots.” These things can all be used in the gaming industry to make this partnership really shine.
The payment pain points
How a company handles players’ payments can have a direct effect on engagement and loyalty. Developers are always looking for ways to simplify, secure, and speed up transactions. They want transactions that are easy for players to complete and easy for developers to process.
It must also be seamless and integrated into the game. Players don’t want their money to be taken away from them. They don’t want another page asking for credit card information. Integration is a guarantee that the transaction will be secure.
Premisler stated that giving players the option of how they pay is another powerful way to build customer loyalty.
She said, “That’s what I’m working on together — embedding Mastercard’s Pay with Points solution in Xsolla’s capability and making that available to every game of Xsolla’s platform and therefore every player that plays those games,” “Given how many video games there are, it’s not surprising that there are so many. [Xsolla] Touches, that’s a lot gamers who will be able to use those points for in-game currency and items.”
They are also looking at ways to ensure that parent controls are in place for content and payments. This will prevent players from getting a huge bill if a child gets their parent’s phone. They are also planning to meet any future challenges. What will web3 payments look like as web3 games become more popular? Companies will need to determine how to accommodate all players as a wider range of players enters the web3 gaming industry, even those who are less tech-savvy.
Payment technology that “revolutionizes gaming”“
The initial joint initiative between Mastercard Xsolla and Xsolla aims to make game transactions in the Xsolla ecosystem seamless and accessible. However, it will also impact how player engagement is activated. This initiative is important because it includes the ability to pay with points.
A player can top up their account, purchase a bundle, or set up a subscription by clicking “credit card” during the checkout process. Once they click “credit cards”, their accounts will be set up with their bank information, points values, and so forth. Xsolla has thousands of games and serves millions of players worldwide. They account for more than 50% of all credit card transactions. This is possible because of the Mastercard partnership.
However, it’s the points that matter most. Mastercard has long operated points programs for huge industries like airlines. Now they are bringing that to gaming.
Premisler stated that consumers who use points are three-times more likely to buy. “That alone is helping our publishers get more stuff through this game. You’ll spend 27 to 28 percent more if you pay using points. We are increasing the size of our baskets. We are making it easier for people who want to pay and purchase in-game items.
The publisher decides the points value of their items (they are not usually a one to one conversion). Mastercard will support them with its long-term experience and knowledge. There are many use cases, including physical goods such as branded developer merchandise, virtual goods, currency, subscriptions, and so forth.
Egenes said, “This is going revolutionize the way players pay and play games.” It’s a huge reward for them because they can admit that there’s value in what they are receiving. We can manage it, control it, and activate that. This can be grown. It’s not a U.S. game.
It’s also becoming more accessible — democratizing gaming even. Anyone with a Mastercard can purchase securely and benefit from the points program offered by participating merchants. The Mastercard platform is available in almost every market in the world.
Egene said developers will see more transactions and more frequent transactions.
He said, “We talk a lot about user acquisition and incrementality on mobile, from this perspective.” “But to be in a web shop, make a purchase, then go back to your mobile device to play the game using points, that’s the perfect connection and synergy that we’re going see, especially on the mobile side.
You can watch the entire conversation right here.
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