Payment Processing for Online Games and MMOG

MMOG is an acronym for massively multiplayer online games. The games are virtual worlds with their own virtual realities. Some MMOGs are free. Once inside the world, gamers can buy “virtual assets”. With others, gamers pay on a subscription basis. Some publishers combine the assured recurring revenues of monthly subscriptions with sales of virtual assets within the games.

Of course, it makes the most sense to offer players free access to the games. Get the player is “hooked” for free. Then, to advance to higher levels of play, subscriptions can be offered. Or, the games can always remain free with all profits coming from sales of virtual assets.

The monthly subscription billing model is becoming less common, although, understandably, some online game publishers are reluctant to let go of the allure of recurring billing. Several years ago, before the huge onslaught of online games, subscriptions were an easier sell. But, these days players have so many different choices that there’s no need to subscribe to play games.

Subscriptions can still be attractive for a subsection of players. Hard core players make up a small percentage of players but these players are loyal. Subscriptions that offer unlimited play are appealing to this highly focused, competitive player group.

Still, subscriptions are not the best way to mass market a game. They are certainly not a way to quickly capture revenues for new online game titles. The key is to have gamers learn the game easily and at a minimal cost. The need to sign up for a subscription to play drives away new users that will gravitate to other games that are non-subscription based.

In the long run, mico-payments inside the games will dominate. Games will be free or very inexpensive to join. Gamers will choose how to spend their money on different elements within the game. Companies will have a higher number of small charges rather than relying on subscriptions.

Players will buy virtual objects that give an advantage to play within the virtual world. There will be thousands of digital objects for sale, each costing a buck or two. Multiplied over millions of players, the money adds up fast.

Micropayments within games will necessitate new payment models. Expect mobile payments to dominate for in-game play. But, creative payment processors also have attractive aggregation models that make payments via credit cards and bank transfers viable options. Like any other ecommerce merchants MMOG should offer as many payment methods as possible. More ways to pay means there will be more players who can pay.

Another MMOG business model is 'product placement. Advertisers pay to have their brand attached to items in the world, vastly appealing to major corporations that are desperately seeking new ways to reach buyers.” But, advertising is losing its luster within online games. Players don’t want to be solicited while in-game. And advertisers find it tough to build a business case for translating in-game advertising into real money.