By removing platform-imposed roadblocks, you can define your own path when distributing your game in-store and out-of-store.

Xsolla continues to lead the way in helping all our partners generate more profits for their mobile games with Xsolla products and solutions such as Web Shop, Payments SDK, and others to match mobile game developers’ needs. In 2023, we powered over 150 video games’ Web Shops that help our partners accelerate revenue by monetizing beyond the app store.

Knowledge is power. Xsolla can help you reach out to users by proactively adjusting your strategy to address, navigate, and comply with these changes. This blog post breaks down the market shifts, future caveats, and emerging benefits affecting you and game companies worldwide.

What to expect in 2024?

Beyond Epic’s initial litigation, the looming DMA’s compliance enforcement and related global rulings have pressured Apple, Google, and other platforms to start allowing alternative billing and respond to legal actions.

Alternative billing or third-party billing allows the game developer to add a payment solution different from Apple’s and Google’s built-in payments.

Despite Google being more flexible than Apple, it still requires game developers to return 27% of their earnings. Meanwhile, Google has already begun piloting alternative billing in many countries worldwide (European Economic Area, Australia, Brazil, India, Indonesia, Japan, South Africa, South Korea, and the United States,) allowing developers to incorporate third-party payment platforms.

Developers on Google Play can now offer consumers a “user choice” within the same app to select between Google Play Billing and alternative billing in pilot markets.

Apple filed a legal challenge to the EU’s DMA in November 2023. Nevertheless, Apple has acknowledged the upcoming changes with the recent press release published on January 25  announcing several updates to App Store policies.

Apple is now offering developers a choice of either keeping the existing business terms of a 30% fee or moving to the new business terms announced in the press release. 

Regarding the new reduced rate: Developers must consider if the 0.50 EUR Core Technology Fee annually will positively or negatively impact their business model. Even when combined with a reduced commission, this fee introduces uncertainty. There might be a scenario where a developer experiences an influx of low-quality traffic from user acquisition campaigns that fail to monetize effectively, yet they are obligated to pay the $0.50 fee.

Alternatively — and of particular concern — if Apple alters its infrastructure (as it did in response to IDFA), it may threaten developers’ business models and still require the $0.50 fee for each user acquired in the previous year. This scenario is particularly concerning for publishers releasing free apps — e.g., for community features. On the other hand, accepting new business terms also means that developers can use alternative billing in-app, choose side-loading, and opt for a link-out option.

Unlike Google, Apple requires developers to choose either Apple’s billing system or alternative billing. In the case of alternative billing, developers will have to pay Apple a 10% (or 17%) commission, a CTF, and an additional payment to an alternative billing provider.

Apple’s policies on side-loading state that side app downloads can only occur from alternative marketplaces. In Apple’s terminology, “alternative marketplaces” are the app stores developers must build. To be compliant, app stores will go through a separate entitlement process. Apps will only be available for download on the developer’s official website via Safari (or other browsers) once they implement support for app marketplace download. App downloads directly from the web will not be allowed.

Finally, while link-out options facilitate communication with gamers in-app, Apple requires redevelopers to pay the same commissions on transactions for purchases made after following the link.

Third-party billing: a national example

If Apple’s convoluted reaction to DMA in Europe is a surprise, it shouldn’t be. Look at South Korea’s ongoing dispute about implementing a government-enforced resolution to open App Stores. A pattern has emerged where Apple will implement per-country resolutions uniquely adapted to each local landscape, resulting in similar complexity in other countries and making a strong case for direct-to-consumer relations with players.

Korea’s video game industry monetization and payments have changed significantly, allowing new payment systems (mostly digital wallets) to compete with traditional channels like local credit cards and prepaid cards. A few years ago, paying online without Internet Explorer and plugins installed on a consumer’s computer was impossible.

Still, with so many advances in Korea’s ecommerce and mobile transactions space, third-party billing options have only recently opened for developers focused on Korea’s gaming market.

• Under South Korea’s recent Telecommunications Business Act amendment, developers now have the option to implement pre-approved third-party payment solutions within their games on app stores in South Korea.
• Commission fees: Developers utilizing third-party payments in South Korea are subject to a 26% commission on generated revenue, aligning with Apple’s revised App Store policies.
• Technical integration: Implementing third-party payments requires specific technical steps. Developers must activate the StoreKit External Purchase Entitlement within Xcode, integrate designated StoreKit APIs, and submit a separate app binary specifically for South Korea’s App Store.
• Market specificity: This option is exclusive to South Korea’s App Store. Developers with global distribution plans must maintain separate builds for South Korea’s market if they implement third-party payments in that region.

Direct-to-Consumer: A timely approach to game commerce

The best method for succeeding in the current gaming market is to launch a bespoke, frictionless web-based commerce destination with exclusive player offers and rewards. A web shop lets players purchase in-game items and currencies and top up their accounts from a game-branded, developer-controlled website.

With Xsolla Web Shop, an effective direct-to-consumer solution, you can reduce commission expenses to 5% + processing fee and increase a game’s incremental revenue by 20% and more.

Add payments SDK

You can accept hundreds of new local payment methods via Xsolla Payments SDK. With this method, you can monetize underserved audiences in new regions, adding to increased revenue. However, the platform’s share portion depends on the platform rules and can be as high as 27%.

Alternative billing with Xsolla Payments SDK enables you to become the first to monetize players in regions where platforms are behind innovative local payment methods.

Choose side-loading

The power of Xsolla Pay Station SDK lets you launch a mobile version of your game for out-of-store distribution and create new business models that would be impossible in-store. As a result of the recent Google vs Epic ruling, we anticipate side-loading apps for end-users will become simpler on Android. For developers complying with Apple’s policies for side-loading, Xsolla Pay Station SDK will also be available out of the box.

Xsolla Web Shop features

Web Shop is a time-proven, direct-to-consumer method of empowering players and the game’s community to decide and vote on what’s best for them. Users enjoy a smooth experience from their first visit — login to purchase.

• Seamless authorization and a simplified purchase flow;
• Reduced friction for purchases made outside mobile;
• No login required – automated user ID when they enter the shop;
• Authorization by player ID, bound social media account, email, or login and password;

Creates personal offers exclusive to TOP players;Your web shop is a familiar destination where players can purchase in-game items and currencies and top up their accounts — all from a game-branded website that you customize for your audience.

• Tie VIP offers —priced above $500— to huge in-game advantages;
• Allow targeted offers to attract players and cohorts with a catalog customized to user needs;
• Present high-value, web shop-exclusive content (e.g., gifts, bundles;)
• Use time-limited offers and bundles in connection with valuable promotions;
• Augment web shop purchases with rewards that players can only spend on your game’s web shop items and offers;
• Connect new offers to launches and in-game events.

Web Shop benefits

• Leverages added-value content to communicate hyper-clear value to consumers;
• Enhances engagement by tying in-game events directly to web shop content;
• Creates unique, time-limited web shop bundles dedicated to events or holidays;
• Brings users back to your web shop with daily or weekly gifts that increase engagement;
• Promotes increased LTV and ARPU with exclusive VIP packs designed to monetize whales;
• Motivates players to make a first purchase;
• Relevant, targeted offers and rewards increase revenue and LTV;
• Capitalizes on game personalization by creating new rules based on user attributes.

Web Shop success story

Xsolla Web Shop is a white-label solution where each game’s web store has a unique identity, target audience, and business goals. Metrics that define each shop’s success will vary from one store to the next. This Xsolla partners’ success story offers valuable insights into the prospective health and performance of a well-planned web shop business.

A popular RPG strategy game implemented Xsolla Web Shop for its e-commerce strategy. It successfully applied a web-shop-exclusive currency pack mechanic by promoting a bonus for purchasing hard currency. The reward, which is an additional amount of hard cash, increases in proportion to the value of the purchase.

This incentive has been particularly effective, with over 50% of web shop revenue generated from packs priced above $100.

Get started on tomorrow’s success

The Digital Markets Act presents a unique opportunity for you to re-evaluate your distribution model, take advantage of direct-to-consumer opportunities, and chart a path to lower commissions, more revenue, and a smoother ecommerce experience for your players.

Xsolla is a trusted partner in building a future-proofed business model alongside video game developers. Join forces with our proven expertise and gain access to the tools and infrastructure you need to establish a vibrant direct-to-consumer ecosystem. We empower you with flexible, tailored solutions for establishing a powerful direct-to-consumer sales presence.

Schedule a consultation with Xsolla’s experienced team to discuss your specific needs and unlock new avenues for growth.

This article was originally published on the Xsolla’s blog.

“Xsolla anticipated this seismic shift earlier this year, when we launched multiple products that are being actively used by some of the world’s largest game companies to increase profit and build closer relationships with their mobile and pc players. We’ve now combined these products and learnings into an elegant new solution called Xsolla Web Shop for Mobile Games,” said Chris Hewish, President of Xsolla.

Through Xsolla Web Shop for Mobile Games, developers can expect significant revenue growth and can reach new players in new geographies previously unavailable to them. This solution solves many challenges developers face; such as discoverability, declining profit margins, lack of control over the user experience, access to localized payment methods, cross game marketing, more efficient user acquisition, effective collaboration with creators and influencers, and much more.

Three industry-changing announcements make this opportunity more timely than ever:

1. The Epic v Apple ruling allows App Store developers to direct users to other payment systems, effectively bypassing the 30% cut of in-app payments that Apple takes.

2. Apple announced a willingness to allow the use of alternative payments methods outside the App Store.

3. South Korea approved the first law in the world requiring Apple and Google to open their platforms to alternative payment systems.

Combined with the fact that both Apple and Google explicitly state that cross-platform games can sell IAPs outside of mobile apps, it becomes clear that developers stand ready to unlock their full global revenue potential, increase profit margins and build stronger relationships with their players.

Yoshio Osaki, President and CEO of IDG Consulting, said in a statement to Xsolla, “Although it is still early days on determining the level of potential impact from Apple’s decision, this represents a positive incremental first step in expanding consumer choice, as well as increased flexibility in monetization and business models for developers who sorely need it. We believe this is a net positive for the industry, but execution and implementation on the part of both Apple and developers will be key.”‍

Game Commerce Expertise You Can Trust

With a robust and powerful set of tools and services, Xsolla has helped video game developers and publishers market, sell, connect and optimize their games globally for over 16 years, carefully studying the changing tides of the games industry to position partners for continued success.

In 2020, digital and mobile wallets accounted for roughly 45% of global ecommerce payment transactions, making the digital wallet the most popular payment method worldwide. This number is estimated to increase to over 60% in 2025. Consumers are more likely to pay with mobile wallets in countries like Malaysia and India, and other geographies where credit cards are not the primary payment method. By plugging in the Xsolla Web Shop solution, developers instantly access more than 700 payment methods, including the most popular ones in Southeast Asia.

“Through Xsolla Web Shop, we are helping game developers think about and scale their games across multiple platforms to expand their business into new markets and to grow their audience,” said Anton Zelenin, Head of Game Commerce at Xsolla. “The opportunities are even greater, and we’ve seen amazing success stories from partners who have integrated this solution.”

How Does Xsolla Web Shop Help Game Publishers?

This unique mix of select Xsolla tools and services allows users to add virtual currencies and virtual items to their accounts using their preferred local currency and payment method complete with multilingual display support. In addition, the solution gives developers the tools to extend the life of their mobile and even PC games beyond app stores and other platforms.

But Xsolla Web Shop is much more than simply selling IAPs via a branded location that you control. This solution includes a wealth of benefits for developers and publishers from all over the world, including:

• Savings on platform fees. Xsolla only charges 5% plus channel processing fees, allowing you to generate higher profit and save up to 20% per transaction.
• Access new regions and unlock more revenue. Reach players in 250+ countries and allow them to pay using their preferred local method of payment with access to Xsolla’s 700+ payment systems, and players who use familiar payment methods will spend more.
• Higher retention. Increase retention of local players in specific countries and regions like Southeast Asia and Latin America, where credit cards are not the preferred payment method.
• Top up online. Add a top up capability that allows your players to add virtual goods such as currencies and items. They can also upgrade, downgrade, and manage their subscriptions across platforms.
• Easy-to-start FastTrack Integration. Utilize API calls to import your item catalog to Xsolla so you can start selling right away.‍
  Support your complete catalog of games. Unlock growth opportunities for multiple games with a single online experience, and enable game purchases online after porting your mobile game(s) to the web.
• Reduce risk. Eliminate the headaches of local taxes, VAT, and other fees as well as compliance with COPPA, GDPR, and other regulations with Xsolla handling everything as the merchant of record (MoR) for developers and publishers.‍
  Manage fraud. Conduct business securely with a best-in-class anti-fraud system tailored for the games industry, which can effectively block 99% of fraudulent behaviors.‍
• Understand player behavior. Data ownership and insight into player preferences will allow you to conduct more effective marketing campaigns aimed at reaching new players and giving current players what they want in your game. ‍
• Built-in influencer marketing. Create performance-based influencer campaigns to promote your web shop to new users with revenue share and coupon/cashback opportunities for players via creator tags and content drops.‍
• Better user acquisition. Control the UA process with ecommerce campaigns that feature improved discoverability on a global scale.‍
• Your custom brand experience. Create a customized, branded experience for your game and players rather than being controlled, managed, and limited only to what the app stores provide.‍
• Physical goods. Create an ecommerce experience to market and sell branded merchandise to your fans.
• Gift purchases and promotions. Increase average user revenue via marketing channels with gift purchases for friends and family, custom bundles, sales, bonus and cashback coupons, upgrades, and more.

The future of mobile games is exciting. There are many opportunities to unlock new revenue and expand your audience through a custom, multi-platform experience that caters to players’ needs and wants. With the proposed changes to the App Store and shifting tides across the in-app purchase landscape, Xsolla sees the possibility to turn this shared momentum into game business growth for its existing and prospective partners.

For more information about how to accelerate your mobile game visit Xsolla Web Shop for Mobile Games.

This article was originally published at the Xsolla blog.

What is Web Shop for mobile games?

As a mobile game developer looking to expand, you need a global monetization solution that successfully operates in multiple regions worldwide and offers payment methods your players find familiar and are comfortable using.

That’s exactly what Xsolla Web Shop does. Web Shop for Mobile Games is a highly customizable, long-term solution that allows you to create your own shop, on your own website. Using the Web Shop, you can reach more players, earn more revenue and grow your mobile games worldwide. It lets you do everything the app stores do and more, for only 5%.

How can Web Shop help you do all that?

Web Shop helps you acquire new players and drive existing gamers to your own, branded website. You are essentially creating a white-label payment experience for your players and increasing your brand loyalty at the same time:

• You can connect and communicate directly to your community via updates on your site, an email list, newsletters, social media handles, a Discord server, and more.
• You can set up reward systems for your loyal players and keep users returning to your shop for easy-to-use transactions like purchases and subscriptions.
• You can utilize FastTrack integration, and Catalog Import features to start selling your in-game items and currencies right away. Plus, with the built-in Pay Station integration, you can let your customers pay with more payment methods that they know, trust, and prefer to use.

And did we mention it’s all available for only a 5% fee?

Launch your Web Shop

Okay, now that you know why you should launch your own Web Shop for Mobile Games, how do you do it? It’s a lot easier than you might think. We’ll walk you through the simple integration steps so you can get up and running on your own in no time.

It all starts with your Xsolla Publisher Account, an easy-to-use, all-in-one control center that lets you set up and manage every Xsolla product you need to optimize and monetize your games. Just log in and follow the steps below, or try out Xsolla’s simple demo.

Step 1: Set up your project

If you’re an existing Xsolla Partner, log in to your Publisher Account and go to your project. If you’re new to Xsolla, simply register for an account, and fill in the required details for your project.

Step 2: Create a Web Shop landing page

On the left-hand navigation menu, head to Site Builder, click Create site and choose the Web Shop Page template and enter the link to your app from the App Store or Google Play. You’ll see a pre-created page with assets imported from your game page.

Step 3: Import your catalog or add items manually

In your Store block, click Set up purchases in Store in the navigation menu. Scroll down to Catalog management, and click Configure. On the Catalog management page, under Connectors, click Configure. On the Connectors page, select the platform you want to import from, and click Configure. Make sure the Show in Store toggle is set to on. You can also import items via API.

Alternatively, you can set this up manually. In Site Builder, click Add block and choose Store as the type. From the Select purchase type pull-down in the navigation menu, select Virtual currency (packages), and then click Create virtual currency. Fill in all required fields and create a currency and a currency package.

Step 4: Review your page Go back to the Site Builder and open your page to view it. The currency package you create should be displayed on the landing page.

Step 5: Choose the authorization flow Use Webhooks for Player ID authorization or JSON Web Token (JWT) for Server authorization.

Webhooks: Webhooks let you add items to a specific account in your game. Go to Project Settings > Webhooks. Switch the toggle to ON.

JWT: Follow these instructions to implement user registration and authentication via a platform.

Step 6: Sign Licensing Agreement and launch your page Access and sign the Licensing Agreement with an Owner or Accounting role, and publish your page. Your web shop is set up and ready to use, and you can start selling in-game items, currencies, subscriptions, and more right away for only 5% per transaction.

Step 7: Let your players know about your web shop

Now that your web shop is live, it’s time to tell your players about it. You can do this via email, newsletters, social media handles, a Discord server, and more. Use the email addresses or handles you may have collected when players signed up for your game. You can also have LiveOps or a banner in-game, asking players to sign up and enter any information you may require: email address, social handle, etc.

You can use that information to direct players to your WebShop, let them know about sales, special item bundles, subscriptions, and more. It’s your shop, now open for business. Let everyone know!

Please contact Xsolla’s integration team for advanced help with setup or any technical assistance. You can also reach them via online chat at this link by clicking the message icon in the bottom right corner.

For more information about Web Shop for Mobile Games, download the free ebook, or feel free to set up a call. Your future starts now, and Xsolla’s here to help.

This article was originally published at the Xsolla blog.