|[June 26, 2018]
Mobile Transforms the Way Gamers Play and Make Payments, with 73 Percent of Players Shifting Between All Platforms
New benchmark data from ACI
Worldwide (NASDAQ: ACIW) and Newzoo reveals how digitalization is
transforming the way paying gamers spend, with 62 percent spending on
digital downloads compared to 46 percent on boxed or disc games. 51
percent of gamers have spent on in-game purchases, demonstrating the
growing importance of optimizing payments to seamlessly integrate with
Turns Players Into Payers: Understanding the Gaming Payments Experience"
provides insight into the payments habits, and favorite games, of
players in the U.S., U.K. and Germany - key markets that combined
account for almost 30 percent of global games market revenues.
The global gaming market is expected to reach USD $137.9 billion in
2018, but it remains a challenging environment in which to engage and
convert players. The proliferation of free-to-play titles across all
platforms has led to alternative revenue pathways. However, 40 percent
of non-paying gamers do not spend on games because the free gaming
experience is satisfactory, showing there is further scope to monetize
gameplay and generate revenues. The survey found that fraud also remains
a concern for more than one third of online players.
Other key findings from the study, which accounts for mobile, PC
(desktop) and console gaming platforms, include:
Platform is a key consideration for payments
Mobile is the dominant platform, with 95 percent of respondents
actively gaming on mobile devices, but also has the lowest proportion
of paying gamers due to the prevalence of free titles.
U.S. gamers are far more likely to pay on mobile (60 percent )
compared to gamers in other countries surveyed (49 and 43 percent in
U.K. and Germany, respectively).
78 percent of U.S. gamers who have spent money on mobile have done so
for in-game purchases, compared to only 65 percent in the U.K. and
Gender, geography and age impact spending and gaming choices
In the U.S., men are more likely spend money on games than women; 76
percent vs 60 percent on console games, 70 percent vs 54 percent on
Gamers aged 30-40 are most likely to spend on power-ups, while the
younger demographic (18-30) favors DLC/expansion packs as paid add-ons.
38 percent of U.S. gamers play Mario titles, making it the most
popular franchise (at 26% also the most popular franchise in Germany),
while titles such as Fortnite (fifth most popular overall) have
rapidly gained market share, demonstrating the growing appeal of
Alternative payments becoming more prevalent
PayPal (News - Alert) is the preferred payment method across all markets surveyed, on
every platform. Generally positive opinions toward the incumbent make
it difficult for newer payment options to gain market share.
23 percent of gamers surveyed (25 percent in the U.S., 16 percent in
U.K., 18 percent in Germany) view cryptocurrency positively as a
payment method, indicating potential growth as mainstream acceptance
and accessibility increases.
Trust is the most important factor in determining payment method
preference (38%), followed by speed (30 percent).
Fraud concerns remain a barrier to payments in gaming
19 percent have experienced fraud when paying for games online, while
one-third of gamers are less likely to spend within a game due to
Despite fraud concerns, 44 percent of paying gamers in the U.S.
believe additional security measures for in-game purchases negatively
impact the gaming experience (36 percent in U.K. and 19 percent in
44 percent of paying gamers believe in-game payment experience can be
improved, with one-third of gamers frustrated by slow payment
processes, and more than one-quarter encountering confusing payment
Simplification of payment processes (20 percent) is more important to
gamers than having more payment options (16 percent).
"Gaming is one of the fastest growing segments within the broader
entertainment industry, which continues to undergo rapid change as many
forms of entertainment go fully digital," said Andy McDonald, vice
president - merchant payments, ACI Worldwide (News - Alert). "Mobile and console gaming
is driving changes in payments, especially with smaller value - and more
frequent - in-app purchases on the rise. Gaining insight into the
payment habits of gamers - especially as the cross-platform success of
franchises such as Fortnite increases - is critical, as
businesses strive to deliver next-generation, seamless payments
"Understanding nuances in gamers' paying habits and preferences can help
publishers and developers craft top-quality, custom experiences for
gamers," said Sander Bosman, vice president - research, Newzoo. "But
with variations across geographies, age and gender - not to mention
differences between mobile, desktop and console gaming - there are
multiple factors to be considered. This report provides much needed
insights that help understand the paying gamer; what motivates them to
pay and what is needed to deliver a superior gaming experience as the
boundaries between platforms continue to blur."
To read the full report visit: www.aciworldwide.com/lp/payments-in-gaming
This research project was conducted to explore paying behavior, payment
preferences, and the payment experience among gamers to gather insights
into the most effective ways to optimize payments conversions in games.
2,051 gamers (playing at least two hours per week on any platform) were
surveyed, across the U.S., U.K. and Germany. Respondents were aged 18-40
and are nationally representative of the gamer group. Computer-assisted
web-interviewing (CAWI) was utilized to "invitation only" respondents
over a period of two weeks, including two weekends for a balanced sample
(May 2-14, 2018). Average length per respondent: 15-17 minutes.
About ACI Worldwide
ACI Worldwide, the Universal
Payments (UP) company, powers electronic
payments for more than 5,100 organizations around the world. More
than 1,000 of the largest financial institutions and intermediaries, as
well as thousands of global merchants, rely on ACI to execute $14
trillion each day in payments and securities. In addition, myriad
organizations utilize our electronic
bill presentment and payment services. Through our comprehensive
suite of software solutions delivered on customers' premises or through
cloud, we provide real-time, immediate
payments capabilities and enable the industry's most complete omni-channel
payments experience. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter (News - Alert) @ACI_Worldwide.
Newzoo is global market intelligence partner of choice for any company
with an interest in games, mobile, and esports. Using our ten years of
experience, we help some of the world's leading entertainment,
technology, and media companies to profile their audience, track
competitors, increase brand awareness, spot new opportunities, and
understand the latest consumer trends that are driving change. For more
information please visit www.newzoo.com.
© Copyright ACI Worldwide, Inc. 2018.
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