How Pay With Points is Changing the Game for Gamers

Many video games rely on a point system to motivate and reward players. This is a common practice called gamification, an effective strategy to engage your audience and increase customer loyalty. However, some concerns exist that these microtransactions create a "pay to win" mentality in gamers.

Increased Conversions

Video gaming is a vast, fast-growing global industry. The global community of gamers is expected to surpass three billion people, spending billions of dollars on games each year. Traditionally, the video game industry profits from selling complete copies of games to individuals who hand over real money in exchange for a physical cartridge or disc. 

Boosting engagement through a well-designed rewards program can unlock the secret to skyrocketing conversions. Are you ready to discover what is a rewards program truly means for gamers? In recent decades, the way that gaming companies monetize their products has undergone significant changes. For example, many video game developers now offer players the ability to purchase additional items, bonuses, or services within the games themselves for a small real-world fee. 

These purchases can be either purely aesthetic or confer in-game advantages. The latter are known as "pay to win" microtransactions. While these types of transactions can be controversial, they are a powerful way for game companies to maximize the revenue they generate from each gamer. 

The growth of these types of transactions has attracted the attention of gamers, academics, and policymakers. Still, how frequently players are exposed to them in desktop video games must be clarified. While these new monetization models can drive significant growth in the gaming sector, they also increase complexity and introduce potential friction in the payment experience. 

To avoid these pitfalls, gaming platforms, distributors, and developers must implement secure, seamless payment forms customized to each gamer's unique needs. This ensures that the transaction flow is as simple and frictionless as possible, and it helps to reduce payment drop-offs and improve conversion rates.

Boosted Loyalty

A gamified point system doesn't just motivate gamers to play and win; it also strengthens loyalty to the brand. After all, people want to know their decision to become involved with a business or its products and services is appreciated. That's why loyalty programs have become a common marketing strategy. 

These programs reward customers for their repeat business with discounts, coupons, or even cash back. By providing an incentive, brands can ensure that another competitor will not easily replace their loyal customers. Next-generation fintech providers can help solve this problem and maximize the value of loyalty programs. 

For example, pay with points is a new feature some payment card networks offer that lets participants redeem their reward points at checkout. The administrator of the card network monitors transaction data to identify eligible purchases and then shares that information with a participating rewards vendor. 

Providing an option for customers to pay with their rewards boosts redemptions and sales. Many companies fear that lowering the price of redemptions will devalue their loyalty currency, but this creates a stronger sense of value for dormant rewards members and can trigger incremental sales spikes without adversely affecting customer loyalty. 

Moreover, it is easy to add a pay with points button to a company's website or mobile app and integrate it into existing SMS flows for loyalty and winback campaigns.

Boosted Revenue

As a result of the growing global gaming community, there has been an increase in revenue for game publishers and developers. One of the primary methods for achieving this is through microtransactions and in-game economies. This system is similar to other eSports competitions that rely on in-game currencies or prizes to attract players and encourage engagement. 

Another way video game companies generate revenue is through subscription models. These models allow players to pay a recurring fee, often monthly, in exchange for access to exclusive games and perks. Some subscription games have millions of users, driving recurring revenue for the publisher and developer. 

While some gamers have voiced their disapproval of these monetization strategies, the reality is that most of them engage with games that incorporate these elements. Exposure to cosmetic and pay-to-win microtransactions has increased significantly over the time that has been analyzed. 

Whether through a rewards program, loyalty platform, or a unified payment interface, the ability for gamers to pay with points at checkout can boost conversions and drive recurring big-ticket purchases from active and passive spenders. 

Moreover, it can also help revitalize dormant rewards programs that last saw redemptions a while ago. By leveraging the full capabilities of the API rewards system, gamemakers can ensure an adaptable, fast, and seamless checkout experience for their players to boost loyalty and revenue.

Boosted Convenience

In the past, players had to wait for a video game release date, hop in the car and drive to their local gaming store, or wait in line to purchase a video game. Today, digital games can be downloaded instantly to desktop or mobile devices. 

This convenience makes it easier for gamers to buy the games they want at a moment's notice. However, it's still essential for developers and publishers to offer a seamless digital transaction experience that reduces payment drop-off. A simple, integrated points system is one way to do this. Points payments are easy to set up and offer a quick, secure, and convenient alternative to other payment methods. 

They also work well to motivate gamers, as they can be used to earn in-game rewards and unlock new features. Additionally, a points model allows gaming companies to avoid app-store fees and taxes, which can eat into profits. In turn, they can allocate more funds for development and content updates to keep gamers engaged.