Users are always looking for the best deals. To gain a competitive edge, marketplaces shift towards offering more flexible rewards, including exclusive in-game items like skins or power-ups, discounts, or even real-world rewards like gift cards or merchandise. Oftentimes, loyalty programmes incorporate elements of gamification, such as challenges, achievements, or progress bars, unlocking progressively better rewards as users spend more or engage with the platform more frequently.
By analysing user data, marketplaces can customise their loyalty rewards to each user’s interests and habits. Such personalisation makes users feel valued and understood, increasing the likelihood of continued engagement with the platform and maximising user retention.
This is especially important during periods of economic uncertainty. Consumers tighten their belts and redirect spending towards cheaper alternatives – or abandon brands entirely. Gaming marketplaces that recognise this adapt their strategy to focus beyond traditional transactional relationships. A well-designed loyalty programme – offering exclusive rewards, discounts, and other perks – is pivotal in fostering emotional connection and trust with the users. Casual gamers might appreciate early access to demos or discounts on new releases. Hardcore gamers might value exclusive in-game cosmetics or free, downloadable content.
By offering programmes with consistent value and ongoing benefits, marketplaces can reassure customers of their commitment to deliver high-quality user experience. In short, prioritising long-term value creation is key. Loyalty programmes drive this by increasing customer lifetime value, reducing churn, and generating positive word-of-mouth or social media referrals, all of which contribute to more sustainable business growth.
Marketplace-specific wallets create new sales opportunities and give businesses additional control over monetisation. Wallets can streamline the purchasing process for users, who preload them with funds or link them directly to preferred payment methods. This reduces friction and makes transactions more convenient, allowing users to engage in more frequent, smaller-value purchases, which are especially effective for in-game items or loot box microtransactions. By encouraging users to pre-load their wallets, marketplaces can ensure and forecast a steady stream of revenue. Furthermore, they can facilitate cross-promotions and partnerships with other developers, publishers, or payment providers. For example, gaming marketplaces may offer exclusive cashback deals – which can only be obtained using their wallet and used for subsequent purchases on the platform. Offers of this kind drive user engagement, increase their spending, and expand the reach of the marketplace.
After adding over 160 payment methods worldwide on Eneba, we know that geo-localisation caters to different user preferences and enhances accessibility. This trend will persist in the industry, with some regional variations.
For instance, North America is still dominated by cards and PayPal due to their convenience and purchase protection. Digital wallets, like Apple Pay or Google Pay, and P2P payment platforms, such as Venmo and CashApp, are also gaining momentum.
In Europe, cards and PayPal are prevalent too, with some country-specific exceptions, like iDEAL in the Netherlands, BLIK in Poland, or MBWay in Portugal. However, the regional regulatory scrutiny of Visa and Mastercard related to anticompetitive behaviour and market dominance may drive wider adoption of alternative payment methods (APMs).
Due to high smartphone penetration and strong regional players, digital wallets and mobile payments reign supreme in the APAC. Prepaid cards are also common, especially among younger gamers or those with limited access to traditional banking.
LATAM is like APAC – wherein digital wallets and local payment systems, like Pix in Brazil, SPEI in Mexico, or PSE in Colombia, are gaining traction. However, cash-based payments remain prevalent in areas with lower bank penetration.
In Africa and other emerging markets, mobile platforms are increasingly favoured for gaming purchases, allowing users to pay via their phones, and thus bypassing traditional banking systems.
Of course, some challenges must be addressed before reaping the benefits of local payments. Payment regulations vary by country, requiring compliance across data privacy, taxation, and consumer protection. Navigating these complexities is crucial to avoid legal issues or financial pitfalls. Moreover, going local requires implementing robust fraud detection and prevention measures, tailored to region-specific risks and fraud patterns. Also, let’s not forget that localisation goes beyond payments, as it is necessary to cater to the regional language and cultural preferences – and ensure timely customer support via chat, email, phone, etc. Addressing these and other challenges demands careful planning, investment in technology and infrastructure, and ongoing optimisation to ensure a seamless and secure experience for users worldwide.
This editorial piece was first published in The Paypers' Fintech for Marketplaces and Platforms Report 2024 which taps into the fast, ever-expanding ecommerce industry, being the ultimate source of information for businesses looking to expand and grow their consumer base.
Mantas Eitutis is a seasoned professional with experience in the dynamic fintech industry and central banking. He’s an expert in financial institution licencing, strategic development, and compliance intricacies. As the Head of Payments and Risk at Eneba, Mantas has been shaping the company’s payment strategies, overseeing partnerships, and implementing risk management practices to optimise operational efficiency.
Eneba is a digital entertainment marketplace specialising in game keys, gift cards, and mobile top-ups. It offers a wide range of products for platforms like PC, Xbox, PlayStation, and Nintendo Switch. Eneba aims to enable everyone to discover the joy of gaming by offering users competitive prices and deals on over 80,000 products, secure payments, quick refunds, and ready-to-help customer support.
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