PAYNOVA LAUNCHES NEW FUNCTIONALITY FOR THE ONLINE GAMING SEGMENT
(NGM:PAY)
Paynova has launched its one2one additional service at the Austin GameDevelopers Conference in Austin, Texas. Paynova’s payment service is one of a small number on the market that supports both of the gaming industry’s dominant business models: payment via subscription and micro-payments via “pay-per-component.” The online gaming market is currently dominated by payments via subscription, but it is “pay-per-component” that is growing most quickly. Paynova is therefore well positioned in the ongoing market development, something that is confirmed by the huge interest shown in the company in Austin.
During September, Paynova has been on site at the Austin GameDevelopers Conference, one of the world’s leading fairs focusing on the online gaming industry. The aim has been to launch the company’s new one2one additional service and to meet the leading companies within the segment to make partnership agreements.
ONE2ONE – STRENGTHENS PAYNOVA IN THE ONLINE GAMING SEGMENT
Paynova’s one2one additional service has been developed with the focus on the online gaming segment, one of Paynova’s prioritised segments.
With Paynova’s payment service, an online gaming company can handle all payments, both outside and inside the game. one2one is one of the few payment services that supports the gaming industry’s two dominant business models: payment via subscription and payment via “pay-per-component”. Regardless of the business model or combination used, one2one allows players to carry out transactions within the game. In addition, one2one can reduce fraud to very low levels.
Paynova’s payment service offers numerous benefits. With Paynova, the online gaming companies can increase the proportion of new players who can continue playing (by applying pay-per-component), as well as strengthen the attraction of the game thanks to an improved gaming experience. Gaming companies can also reduce their costs associated with handling several payment solutions, reduce or eliminate payment fraud and completely avoid the costs of individual PCI certification (required for handling payments by Visa and MasterCard).
The interest in Paynova’s payment service and the one2one additional service was huge at the Austin GameDevelopers Conference and negotiations with a number of online gaming companies are continuing.
MARKET DEVELOPMENT FAVOURS PAYNOVA’S PAYMENT SERVICE
The online games market is currently dominated by payments via subscription, but it is “pay-per-component” that is growing most quickly. “Pay-per-component” means that the player pays as he or she goes, according to position in the game. This trend is confirmed by Paynova’s contact with leading games companies during the Austin GameDevelopers Conference. Overall, this trend means that demand for the type of payment service offered by Paynova will continue to grow. The launch of the one2one payment service further strengthens Paynova’s position in the segment.
ESTABLISHED POSITION WITHIN ONLINE GAMING
Online gaming is one of Paynova’s prioritised segments. Paynova’s account-based payment service is ideal for this type of application and there is a significant volume potential in the segment. There are several competitors to Paynova in this segment, above all PSPs, but as yet no individual supplier that has taken a significant market share.
Paynova’s market position within online gaming was primarily founded on the company’s established relationships with three gaming companies that each have leading market positions within their respective niches. Mindark’s Entropia Universe is one of the market’s first MMOG (massive multiplayer online games)/virtual worlds with a real cash economy within the game itself. Sulake Oy operates the youth website/virtual world Habbo Hotel in a number of countries, and King.com offers simple entertainment games (casual games) with families as its target group.
DRAMATIC GROWTH IN THE ONLINE GAMING MARKET
Market growth for PC MMOG games for Europe is estimated to amount to 35 per cent per year by 2011. During 2006, the global payment volume was over SEK 30 billion, and this market is estimated to be over SEK 80 billion in 2010. The market in Asia (excluding Japan) during 2006 accounted for around SEK 15 billion, which was roughly double that of the North American market, which in turn was twice as much as the European market. A characteristic of the MMOG segment is that the gaming companies aim for a broad international presence. Asian gaming companies are concentrating on establishing themselves in the west and vice versa. The business model and payment solution has a key role in this development. By working with partners in Europe and China, Paynova has positioned itself so it can benefit from this trend.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Karl Alberts, Marketing Manager
Telephone: +46 (0)70-33 55 326
ABOUT PAYNOVA
Paynova offers an international, account-based complete service for payments via the Internet. With Paynova as the only counterpart, e-retailers can get a payment guarantee for 21 payment options with credit cards, debit cards and Internet banks, in 11 languages with 8 currencies in a security-certified interface (PCI). Consumers can open an account, a Paynova Wallet, for free on the Internet to make purchases simpler and more secure, as well as look after transfers between family members, friends and acquaintances. Paynova has agreements with around 1,600 e-retailers. Most are found in the following prioritised segments: travel, retailing and media/network games. The company has been listed on NGM Equity since February 2004. For more information: www.paynova.com