Online Gaming – RuPay/UPI preferred option for online gaming purchases (Last 5 Years)

The rise of E-Gaming, Cloud Gaming, and E-Sports has revolutionized the digital entertainment landscape. Indian consumers are increasingly involved in global gaming platforms, paying for in-game assets, Cloud Gaming subscriptions, and E-Sports events using a variety of digital payment methods. Credit cards, netbanking, UPI (Unified Payments Interface), and RuPay card systems have become essential for managing foreign transactions in these sectors. However, users often encounter issues such as transaction failures, delays, and amendments, especially when dealing with cross-border payments. This article explores transaction trends in gaming-related payments over the past five years and outlines the innovative solutions Transact Bridge is developing to improve these processes.

Gaming platforms rely heavily on seamless payments for subscriptions and in-game purchases. However, transaction failures remain a common challenge, especially in cross-border payments involving credit cards, UPI, and RuPay cards. Some of the key causes include:

• Cross-border regulatory limitations: Gaming platforms often face difficulty with foreign exchange regulations and country-specific payment policies.
• Technical errors: Outdated systems or server downtime during high-traffic gaming events like E-Sports tournaments result in payment failures.
• Fraud detection measures: Banks and payment systems often flag gaming transactions as suspicious, especially for international payments.
• Currency exchange issues: Inconsistent or real-time fluctuations in exchange rates can lead to declined payments.

Trends:

• In 2019, the gaming industry saw a rise in transaction failures due to massive interest in battle royale games like PUBG and Fortnite.
• In 2021, the introduction of more robust security measures for UPI and RuPay payments led to a gradual reduction in failure rates, especially for lower-value gaming transactions.

Pending transactions remain an issue, particularly in Cloud Gaming and E-Sports, where time-sensitive payments are crucial. The common reasons include:

• Intermediary delays in payment gateways: When using UPI or RuPay for international payments, certain transactions are held up for verification, especially in cases of cross-border remittances.
• Currency conversion lags: For international gaming transactions, converting INR to foreign currencies can lead to delays in approval.
• Server issues: Gaming servers located internationally take time to verify payments made through Indian payment systems.

Trends:

• Pending transactions increased in 2020 as Cloud Gaming and E-Sports surged in popularity during the COVID-19 pandemic. Payment systems, especially UPI, experienced delays during peak traffic times.
• The use of real-time payment processing systems has reduced pending transactions since 2022, particularly for users who rely on UPI and RuPay cards for foreign payments.

Amendments are made when there are errors in the original payment, and they often arise in the gaming industry due to:

• Incorrect in-game charges: Users may be charged the wrong amount due to exchange rate discrepancies or platform errors, leading to disputes and amendments.
• Refunds for canceled E-Sports events: Events may be postponed or canceled, leading to a high volume of transaction amendments for registration fees and ticket purchases.

Trends:

• In 2020, amendments peaked due to the cancellation of numerous E-Sports events during the pandemic.
• As UPI and RuPay card systems began adopting more efficient transaction reversal processes, the amendment rate stabilized in 2022, making it easier for gamers to resolve transaction disputes.

The success rate of foreign transactions in the gaming industry has shown improvement, largely due to advancements in payment infrastructure, especially with UPI and RuPay’s increased acceptance internationally. Factors contributing to higher success rates include:

• Improved payment gateways: UPI and RuPay have integrated with several international payment platforms, enabling smoother transactions for gaming purchases.
• Efficient fraud detection systems: UPI and RuPay systems now use sophisticated algorithms to detect and prevent fraudulent gaming transactions without falsely rejecting legitimate ones.
• Global partnerships: Gaming platforms such as Steam, Xbox, and Sony PlayStation have improved collaboration with Indian payment methods, enhancing transaction approval rates for Indian users.

Trends:

• From 2018 to 2023, successful transaction rates increased significantly, especially as UPI and RuPay expanded their global presence. By 2023, nearly 94% of all gaming transactions were successful, compared to 80% in 2018.

UPI and RuPay card systems have been instrumental in making digital payments more accessible to Indian consumers, even for cross-border transactions. Here's how they’ve impacted the gaming industry:

• Real-time Payments: UPI allows for instant bank-to-bank transfers, reducing the time needed for payments to gaming platforms and preventing delays for time-sensitive transactions like E-Sports tournament registrations.
• Cost-effective Foreign Transactions: UPI transactions typically involve lower fees than credit cards or traditional banking methods, making them more appealing for small in-game purchases and subscriptions.
• Wide Adoption: Several global gaming platforms are now integrating UPI as a payment option, making it easier for Indian gamers to pay for international services.

• Domestic and International Usability: Although RuPay was initially limited to domestic payments, its global expansion through partnerships with Discover, JCB, and Diners Club has made it a viable option for international gaming transactions.
• Lower Transaction Costs: RuPay cards, especially debit cards, are often more cost-effective than international credit cards, particularly for small-value transactions, which are common in gaming.
• Increased Security: RuPay’s multi-layered security framework reduces the risk of fraud, making it a safer option for gamers worried about unauthorized transactions in foreign currencies.

Recognizing the issues faced by Indian gamers, Transact Bridge is introducing cutting-edge solutions to streamline UPI and RuPay-based payments for international gaming transactions.

Transact Bridge is working with global gaming platforms to enable UPI-based international transactions. This solution will allow Indian gamers to make seamless, real-time payments in foreign currencies using UPI, significantly reducing delays and transaction failures.

In partnership with RuPay, Transact Bridge is facilitating faster payment approvals for RuPay card users on international gaming platforms. This will expand the usability of RuPay cards for cross-border gaming purchases, eliminating many of the traditional issues of currency conversion and failed payments.

To minimize transaction failures due to fraud concerns, Transact Bridge is introducing an AI-powered fraud detection system specifically tailored for UPI and RuPay users. This system will better recognize gaming-related transactions, reducing the likelihood of legitimate payments being flagged as fraudulent.

Transact Bridge plans to introduce a blockchain-based tracking system for UPI and RuPay transactions. This will allow gamers to monitor the status of their payment in real-time, giving them transparency into the approval process, especially for large payments in Cloud Gaming subscriptions or E-Sports tournaments.

To address issues with failed recurring payments for gaming subscriptions, Transact Bridge is developing a solution for seamless subscription renewals using UPI AutoPay and RuPay card auto-debit features. This will ensure that gamers don’t face interruptions in their gaming services due to payment delays.

The E-Gaming, Cloud Gaming, and E-Sports industries have seen exponential growth in India, with players increasingly relying on digital payment methods like UPI and RuPay for cross-border transactions. While challenges such as transaction failures, pending payments, and amendments still persist, the landscape is improving. Transact Bridge is at the forefront of this transformation, offering innovative solutions to streamline foreign transactions in the gaming sector. With UPI and RuPay card systems becoming more globally integrated, the future looks bright for Indian gamers who want to engage with international platforms without the hassle of payment issues.