EU Online Game Payments 89% Growth by 2015

The online game market in Europe is projected to grow to $4.2 billion by 2015.  This represents an 89% increase over 2010 revenues of $2.2 billion .

It’s no surprise that a strong broadband infrastructure is a good indicator in determining which countries have the biggest spend on digital games.  For example, in Romania, which has high broadband penetration, players spend about $24 per year on online games.  In Scandinavia, players spend $20 and in the UK $12.

Online games payments are driven by high volume of transactions with a low average ticket per sale.  Digital delivery of virtual goods and in-game currencies make the sites attractive sites for fraudulent transactions.

Some fraud is “friendly fraud”, with players claiming the digital products were not received.  Other fraud is committed by cybercriminals who use the sites to test whether or not a stolen card still has funds available.   Online game merchants need to activate all fraud fighting weapons available to protect international merchant accounts.

Online games need to offer card payments, of course.  But, just as important are alternative payment options such as bank transfers and localized debit cards.  These payments often have fewer contingent liabilities associated with them, thereby reducing helping to chargeback ratios from fraud.