13 DEC 2019

How does carrier billing help game developers increase payment conversion?

POSTED UNDER Digital Goods Direct Carrier Billing Games and Gaming Mobile Marketing Payments Web Payments White Paper
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Mattias Liivak

Head of Marketing & PR, Fortumo

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The number of people with smartphones in emerging markets continues to grow. For game developers this means a large part of their audience is in these regions as well. The new gaming audience has access to content, but often do not have access to traditional payment methods:

How does carrier billing help game developers increase payment conversion?

For emerging markets, carrier billing gives an alternative option to pay. But how do you know if the user has a credit card or not? There’s no way to know before they actually end up making a payment. Which they may never do, because there are other reasons stopping them from making the purchase.

The first reason is that for their first transaction, the checkout may be too complicated. If Gold Coins are for sale for $2.99, it may simply not be worth the hastle of getting out their credit card and typing in their payment details on a small screen. The amount of information they need to enter is not small: their credit card number, expiration month, expiration year, card security code, their name, billing address and ZIP code.

In cases where users do have a credit card but the checkout flow length is preventing them from paying, carrier billing can be offered instead.

Let’s say a game developer knows that users paying with credit cards convert on average within a week. For any user that doesn’t convert during that timeframe, an offer can be made to purchase a cheaper package through carrier billing instead. If the users then convert, it’s clear they were willing to make the purchase all along, but either did not have a credit card or felt the value propositon to be too weak to go through the hassle of typing in their data.

The second reason why users may not pay with their credit card is privacy. During the past decade, there have been several data breaches with gaming content where private information on millions of users has been exposed. The biggest of them was the Sony PlayStation Network case in 2011 when 77 million accounts were hacked and estimated losses amounted to 171M dollars. In 2014, Sony agreed to a preliminary $15 million settlement in a class action lawsuit over the breach.

For card-based transactions, users need to share their private data in order to complete the transaction. Carrier billing does not require the user to share such data as only their phone number is needed. Iff the user chooses carrier billing over credit cards, it can be because they simply didn’t want to share their personal information for an in-game transaction.

Interested in learning more about how carrier billing helps game developers grow their revenue? Download the case study below.

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