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The Latest News, Industry Insights and Research Findings on Global Payment Markets

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13Jan/12

Research Report: In-game Purchases on Smartphones to Exceed $4.8B by 2016

By Martin Schuppelius
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Downloads, In-Game Purchasing & Advertising Strategies 2011-2016” report reveals that the increasing acceptance of in-game purchases and the ever-growing number of smartphones will push the sales of in-game items within the next five years.

The number of developers that will adopt the freemium model rather than the pay-per-download model is expected to increase, especially in the social& casual game area. Free games are downloaded in greater volume and create a larger user base. Users will more likely spend money on in-game items when they already have spent some time playing the game instead of paying upfront for a game they haven’t tried out. Also users get more familiar with the freemium model and the percentage of gamers who actually purchase items is expected to increase.

“An increasing number of games developers are finding the in-game purchase model attractive simply because it provides easy answers. Their piracy rate will drop and the game will see more downloads. However, while some games may generate significant revenues from in-game items, the model doesn’t work with all games and developers have to tread a fine line between encouraging purchases and appearing to be exploitative,” said report author Charlotte Miller.

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21Oct/11

Mobile Payments for Physical Goods to Exceed $170B by 2015 Says Research Report by Juniper

By Gary Merrett
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report by Juniper Research, a company specialized in research and analysis in the communications sector, estimates that the transaction value of mobile payments for physical goods will exceed $170 billion worldwide by 2015. This would be almost triple the $60 billion forecast for 2011.

According to Juniper, the initial growth had been driven by an increase in smartphone adoption and the rise of retail apps. The market will gain further momentum following the increasing deployment of POS (point of sale) solutions to facilitate in-store cashless transactions.

Juniper finds that the Industry is aware of the need to create an integrated shopping experience thus enabling seamless access to retail sites across multiple devices. The research firm advises vendors to innovate constantly as the market develops and becomes more competitive. “Our research for this report underlined the importance of mobile as an extra channel to market, but Juniper believes that mobile campaigns must be tightly linked to print, online and store based campaigns to ensure consistency of customer experience. Increasingly people will browse on one device such as a PC and then buy from another such as a smartphone,” explained Senior analyst David Snow.

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