Over 50% of PayByCash Payments from Ultimate Game Card

PayByCash announced today that over 50% of its US transactions were coming from its Ultimate Game Card, a prepaid card that supports over 150 virtual worlds and games, like Club Penguin, Nexon America, and IMVU. Previously U.S. consumers favored PayByCash's direct debit options. I think it's a figure worth pointing out, first, because after its recent acquisition by PlaySpan, PayByCash is an increasingly large player in payment options, and, second, because it highlights the increasing importance of prepaid cards.

I'd guess one explanation for the transition, and one to watch, is that adults are more likely to set up debit options. Along with that, it's important to note that this is only for U.S. transactions. Elsewhere in the world, prepaid cards and codes seem to be big, but only alongside the already fairly prevalent adoption of other payment methods, like mobile billing and premium SMS.

Kids and teens, who seem to be driving much of the consumer-oriented virtual worlds growth, simply pick up cards at retail. With more of those cards competing for space, solutions like Ultimate Game Card or Ukash, which announced new funding today, that support multiple communities and games make sense. That, at least, is one of PayByCash's selling points

“It gets more and more difficult for individual games to effectively distribute their own pre-paid cards to a wide enough market,”  Kevin Higgins, PayByCash president, said in a statement. “The up-front expense can run hundreds of thousands of dollars to cover a market the size of the United States. It can take six months or more to execute, and store shelf space is becoming increasingly limited. Ultimate Game Card’s distribution is already in place; it has great brand recognition by gamers and those buying gifts for them, and demand is strong. The fact that it supports all PayByCash game merchants makes our Ultimate Game Card stand out in a retail market that is saturated with less versatile pre-paid cards.”

That may be compelling from a publisher/developer standpoint. From a consumer's view, though, I think it just highlights the importance of making entertainment and social virtual worlds easy, both in terms of accessibility and payment.