Ukash proves it’s far from game over for cash
Gamers are fighting against bleak reports of the economic climate by discovering new ways to pay and play online that also help to stay in control of spending.
Recent research carried out by Ukash, the global e-money network reveals that while 9 out of 10 Ukash customers have a bank account, many prefer to use this cash alternative to credit and debit cards online. The safety, security, and privacy that Ukash offers are all reasons for customers to use alternative payments to cards.
“The research shows that it’s far from game over for cash and we are seeing demand from publishers and gamers for alternative payments. Paying with Ukash enables players to stay in control of their budgets and game safely online,” says Ukash CEO David Hunter.
Games publishers, too, are seeing the purchase of video games goods online, using alternatives to card payments such as Ukash increasing. At gamigo, Senior Manager, Business Development & Payment , Mark Gerban says: “We have seen a significant rise in players using alternative payment solutions. We offer several options that enable players to effectively use cash online and this side of our business has increased over the last 12 months while credit card spend is flattening out.”
The international games market research company Newzoo also found that while in 2010 26% of gamers reported making payments for games using credit cards, in 2011 this decreased to 20%. For online payments in general, the amount spent using prepaid cards – such as Ukash - increased from £90 million in 2010 to £125 million in 2011.
Newzoo’s CEO Peter Warman commented: “While the retail games market dropped 13% (UKIE) in 2011, online and mobile business models pushed the market back to almost even (-1%) boasting double digit growth. Specifically MMO and Social gaming witnessed an increase of at least 40% in spending. Free-to-play business models, in-game micropayments and the use of virtual currency all drive people towards convenient online payment solutions such as Ukash”.
Players can exchange their cash for a Ukash voucher of equal value, available at over 50,000 outlets in the UK and Ireland and over 420,000 outlets in more than 50 countries worldwide. The voucher contains a 19-digit code which is unique and can be used to pay at websites/games that accept Ukash.
Ukash can be used to buy games, downloadable content, in-game transactions, micropayments for in-game goods and Facebook credits. The company now has a substantial number of games publishers in its portfolio, including Electronic Arts, Bigpoint, gamigo, Perfect World Entertainment, Gala-Net, and Gameforge.
“Games publishers are increasingly looking at online cash models such as Ukash to sit alongside their existing payment options. It’s easy to integrate with existing payment options, and there is no financial data to maintain. Players tell us that they use Ukash for many reasons ranging from security, convenience, ease of use, to control and privacy. By accepting Ukash, games publishers can reach new markets,” Hunter continued.
Since its launch in 2005 Ukash has become a globally-recognised payment method that enables online transactions using cash, providing freedom from credit and debit card fraud, repudiations and charge-backs, and protecting personal identity. Ukash allows participating online games merchants to accept cash at their websites without risk of repudiations and chargebacks – which also means that new cash-focused markets are opened up. Consumers benefit from their financial identity being protected and a secure, convenient and easy to use payment method.
