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Study looks at mobile, other pay choices of gamers

Global consumers are increasingly turning to alternative payment methods instead of credit or debit cards to purchase video games, according to research findings from WorldPlay, a provider of payment and risk services.

According the white paper "Video Games Payment Preferences," which included survey responses from 7,554 consumers who've purchased video games online about their purchasing frustrations, alternative payment methods are used by 51 percent of video gamers across the globe, compared to 46 who use credit and debit cards.

(WorldPlay said alternative payments comprise real money-based e-wallets, points or credits-based systems, direct debits or direct transfers, cash vouchers and mobile phone carrier billing.)

The research also found that the highest users are consumers in the emerging markets, with 79 percent of consumers in China and 71 percent in Russia making video game purchases using alternatives.

E-wallets have largely driven the increase in alternative payment usage, WorldPlay said, comprising 27 percent of overall transactions, largely driven by online video games purchases and the purchase of modifications and expansions to existing games. Although that equates to just more than a quarter of transactions by volume, the company said, it indicates the rapid growth of a relatively new payment type.

The research also explored the most popular video game purchases and average transaction rates, the company said, and found that on a global scale, app store video games are the most popular, having been purchased by 49 percent of video gamers in the past 12 months. The U.S. (26 percent), Russia (26 percent), South Korea (44 percent) and India (37 percent) are the greatest purchasers of app-based video games.

The survey placed the average transaction value of app-based video games at $11.14 per transaction, compared to console-based games, which command an average price of $21.50 per transaction (rising to $39.63 in Brazil).

The research found that payment method choice is driven by the desire for convenience and security:

  • 72 percent of respondents wish to save payment details for quicker future purchases
  • 80 percent generally use the same payment method for all types of content

In terms of payment security, the survey revealed that a primary concern for video gamers (62 percent) is the protection of personal payment details, followed by whether merchants can assure gamers their personal information remains private (53 percent).

The research suggests that e-wallets are seen as more secure than other payment methods by consumers (34 percent), the company said, while most consumers suggested they are "very concerned" by how well they believed credit cards (35 percent) and debit cards (32 percent) would secure their details.

"The payment landscape is changing rapidly, and while credit and debit cards are still heavily used by consumers, we are seeing an increasing number of video gamers seeking alternative payment methods," Colin Murray, VP video games, WorldPlay, said in a news release. "These preferences vary by geography, but increasingly consumers are choosing e-wallets to make purchases with the perception that this method is more secure, reliable and efficient than credit or debit cards.

"With the rise of in-game purchases, we can expect to see further developments in this sector, and merchants therefore need to review their payment method portfolio and consider implementing alternative payment methods to meet this growing consumer demand."

Learn more about in-app payments and trends/statistics.