Mastercard Says It Will Work With Xsolla to Remove Friction From Videogame Purchases

Mastercard Inc. is teaming with videogame-commerce company Xsolla in an effort to smooth online-gaming checkouts by enabling new payment options for Xsolla’s videogame platform, the card network said. Mastercard cardholders will be able pay for gaming purchasing using credit card loyalty points from participating merchants and issuers. They can also gift in-game currency to family and friends. Los Angeles-based Xsolla creates tools and services exclusively for the videogame industry.

Using the Pay with Points option within Xsolla’s Pay Station product, Mastercard cardholders will be able to redeem their loyalty points from participating merchants and card issuers for in-game purchases. Pay Station currently supports more than 700 payment methods across more than 200 geographical locations, Xsolla says. In addition, gamers will have the opportunity to gift in-game currency to friends and family.

Xsolla’s products operate in more than 200 countries and territories, and support more than 20 languages and 130 currencies, according to the company’s Web site.

The enhancements to Xsolla’s platform are being driven by consumer dissatisfaction with the process of purchasing in-game currency. More than 40% of consumers say they need help to buy the currency, and more than 30% say it takes too many steps to make online-gaming purchases, according to Mastercard. In addition, nearly 30% say the gifting process could be more efficient.

“By combining Xsolla’s payments solution with Mastercard’s loyalty capabilities, cyber solutions, and card and account-based payments technology, we can create new avenues for revenue creation and increased lifetime value for developers,” Berkley Egenes, chief marketing officer for Xsolla, said in a prepared statement.

Videogaming has been exploding. In 2022, nearly 3.2 billion people, about half the world’s population, were projected to be playing videogames, spending a combined total of $196.8 billion, according to Newzoo International B.V., a provider of videogames and gamer data.

Mobile devices have played a substantial role in fueling videogaming growth among all demographics and regions, both companies say. In 2022, revenues generated through mobile devices were projected to total $103.5 billion, according to Newzoo.

“As mobile devices increase the accessibility of videogames, a rewarding, best-in-class digital experience is essential to fostering a loyal gaming community and building a payments ecosystem that provides choice across platforms and dimensions,” said Blake Rosenthal, executive vice president, fintech solutions at Mastercard, in a prepared statement.