The different challenges faced by online gaming websites including accessing payment networks to cater their user-base.
The online gaming industry has expanded in terms of audience size, revenue, and participation. The COVID-19 global pandemic saw an exceptional increase in the number of users. According to research, the online games segment stood at $151 billion in 2019. This is projected to increase to $257 billion by 2025 with an increase of 9.17% CAGR from 2020 to 2025.
Like most other industries, the online gaming sector comes with various challenges like stringent regulations, volatile market trends, fraud, etc. One of the major issue faced by this sector is despite being a regulated industry in most of the countries, gaming websites still cannot access payment service providers. This further diminishes the growth of its user base as well as users falling prey to fraudulent websites.
Significant challenges faced by the online gaming industry
As one of the fastest-growing industries, the global media and entertainment market is projected to grow to more than $2 trillion by Statista. Online gaming forms a major part of this sector, with North America and the Asia Pacific contributing to almost 80% of revenues globally. Despite the growth, the online gaming industry faces many challenges.
Fraud and cybercrime are some of the biggest challenges facing every online business, especially in the payments processing space. According to a research, there was a 30% increase in cyberattacks on online gaming platforms in 2020, which was an over 70% increase than the previous year.
One of the main reasons for increase in cybercrime in online gaming platforms is they lack access to reputable service providers. Despite the fact that the industry is now regulated in major countries. This further leads to service providers integrating their payment systems unsecured platforms. XanPay offers a reliable and convenient way for gaming websites to integrate its infrastructure and route global payments in a secure manner.
Like most other businesses that operate over the internet, online gaming does not adhere to geographical borders. Therefore, if a company wants to scale up, it must become capable of dealing in different currencies.
Therefore, ensure that your payment processing partner should accept currencies where your clients reside. Secondly, the payment system must also be capable of providing services in different local payment modes to ensure seamless transactions. XanPay facilitates gaming websites to offer payments in their local currencies. Moreover, by integrating XanPay's payment solution, service providers can even offer their local payment options including wallets, UPI, and more.
Chargebacks are an unfortunate reality of every online e-commerce platform. They are a challenge for the online gaming business owners as it is not easy to discern if the chargeback requests are genuine or fraudulent claims. The best way to bring down your business expense on chargebacks is to look for a payment processor familiar with the way the gaming industry functions.
Having said that, every online gaming merchant must be prepared for the possibility of customer chargebacks even if the purchases were legitimate. Online gaming companies can certainly reduce chargeback expenses with the help of a reputed and reliable payment processing partner. Such a partner can equip your business with the required tools to reduce the rate of chargebacks.
There is no doubt that every online business platform runs on complicated code and applications in the background. However, the user interface should be as simple as possible. A complicated registration process is sure to dissuade most new clients on your gaming website.
A complicated registration process can result in a negative user experience, especially if your website supports a complicated payment process. The best way out of this is to align with a simplified payment process service provider who can deliver this while ensuring that users are authenticated for legitimacy.
Compliance and Regulations
Online payments attract specific regulations and compliance requirements that are not as stringent in physical payment environments. The regulatory compliance is becoming stricter by the season to curb fraud and control cybercrime in the payments space. As a result, online gaming entities must comply with various regulatory requirements and undergo certifications that can seem complicated to complete. In such cases, an effective payment solutions partner can help you remain up-to-date with all required certifications that do not incur any unforeseen penalties.
Technology and payment processing
A few payment solutions companies globally have implemented technology to overcome payment processing challenges faced by their clients. Their solutions are designed to cater to each one of these challenges. Find a partner that can help you overcome the specific payment processing-related issues your online gaming business faces.
XanPay offers the complete solutions package that covers the technology, the tools, as well as training to ensure that the service implementation is seamless. Besides, as an experienced payment processing solutions provider, we can help facilitate advanced technological tools to cater to the need of customers. This can further help you with customized solutions that increase your operational efficiency leading to satisfying end-user interactions.
There is no doubt that some of the leading online gaming platforms have significantly worked towards overcoming the significant challenges faced by the industry. Technological advancements have a substantial role to play in this change. With increasing online activity, it is now more critical than ever for online gaming owners to ensure that they filter the users accessing their platform.
Simultaneously, the online gaming platforms must reassure their clients with secure and effective payment processing services in a safe environment where they can conduct their transactions. XanPay facilitates online gaming websites to offer a seamless service to their customers without any hassles in managing payments.