Playing your way to online payments
Looking at the evolution of online technologies, it becomes apparent that some industries push the boundaries of innovation further than others. For example, the online gaming field. This is why we want to take a look at the past and present of innovations, where they come from, and how the payments industry has adapted them for the broader market.
The first online games became popular in the early 1970s. Until the 90s, most gaming sites did not charge for the actual games, but made money by quite conventionally selling advertising space to businesses. The first revolution began, when Apple and Google introduced their App stores in which games were sold at a low price. They capitalized on the idea that charging a little from many people was more profitable that investing a lot of resources into selling to a few people at high prices. The payment sector started to move online, as the demand for convenient online credit card payments increased rapidly.1
Today, the most popular online games are still catered for by the App stores: The small games we play on our smartphones are a fun way to pass time and the results can be shared in our social networks, thus fueling our competitive streak. Mostly, the initial game can be downloaded for free, but in-app purchases – at only a few cents each – make up the bulk of proceeds from the online gaming sector. In addition to this, money is still made through advertisements and even by selling upgraded, ad-free versions.
The newest trend in this area are augmented reality games such as Pokémon Go. Payments benefit from the fact that the add-ons required for a competitive advantage cost little money. Users do not even have to use their credit card anymore to make a purchase. Alternative Payment Methods such as PayPal, Apple Pay and other e-Wallets can be connected directly to the gaming accounts. This provides security in addition to convenience and user are gaining trust in the businesses handling their payments, which benefits all industries.2
ONPEX is at the forefront of innovation with its unique position in the payments value chain. Businesses can rely on fast, secure, and easy transactions with ONPEX sophisticated technology. In addition to that, we make sure that even complex processes become transparent. This means a significantly lower investment in analyzing payment data, which saves time and resources and makes businesses faster and more competitive as well as enabling them to offer highly attractive prices for consumers.