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PAYMENT INNOVATION inDIGITAL AND GAMING CONTENTModerator: Vanita Pandey (VP Marketing and Strategy at Arkose Labs)
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Panelist
Peter KovacsNY Times
Manja PfeifferMicropayments
Expert
Thomas PernotFraud and Billing
Manager
Kevin GosschalkCEO and Founder,
Arkose Labs
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Peter KovacsSubscription and payment leader
at The New York Times
Customer Journey - Opportunities and Challenges
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Customer Journey
Attract MonetizeEngage
Content draws customers
Customers register
Diversified payment types
improve conversion
A focus on recurring charges and fraud improve retention
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Monetization Opportunities
Diversify payment types-
Knowing which are right for you (Tips):
o Ensure payment types support recurring billing.o Find out what your customers like to pay with.o Do your due diligence. Not all payment methods work
globally.o Wallets are funded by other payment methods. Make
sure they support what you need.Focus on recurring charges and fraud
o Name an SME, or formalize a team.o Get visibility into approval rates.o Analyze, hypothesize, and test.o Watch for changes in the payment
industry.o Don’t forget about fees
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Monetization Challenges
Monitoring approval rate data-
o Issuer extended decline data (IEDD) and the generic decline.
o Watch for external influencers (Cosco branded card moved from Amex to Visa)
The Age of the Customer
o Consumers want to pay different amounts for news content.
o Create value customers will buy.o Continuous journey = customer loyalty?
Fraud and Regulatory Considerations
o Visa’s free trial mandate (helping make the customer aware of trial related charges).
o PSD 2, GDPR (Protecting privacy of the consumer)o Bypassing our paywall (closing ‘side-doors’ where
non-subs access paid content).o Rapidly evolving fraud patterns
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Manja PfeifferMicropayments Expert
Micropayments: Monetizing Digital Content
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Source: The FairPayZone
Micropayments OpportunitiesPeople want to pay different amounts for digital content
Head
Long Tail
Pric
e
o Green revenue: Capped at set price
o Orange head: Lost surplus
o Yellow tail: Lost sales
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Micropayment Options for Digital Content
Complimentary to subscriptions Onboarding
o Engage digital non-subscribers in the funnel
o Convert readers that value the content to subscribers
o Generate revenue from low frequency visits
o Suitable for users who are never going to subscribe
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Expert’s views
Con
sum
er’s
vi
ews
Source: Dissertation, Dr Manja Pfeiffer
Acceptance of MicropaymentsExpert’s views ≠ Consumer’s views
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Thomas PernotCompany:
Role: Online Business - Fraud and Billing
Manager
Games: FINAL FANTASY XI & FINAL
FANTASY XIV
o Setup customer support policies & objectives
o Weekly / Monthly / Yearly reports o Payment inquiries support leado PsP / APM / Partners sourcing
o Setup fraud prevention policies & strategies & objectives
o Financial activity analyze + weekly / monthly and yearly reports
o Find fraud patterns and fraudulent accounts
o Monitor, update or create fraud prevention rules
Fraud Prevention specialist:Billing specialist:
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Online Business – Supported MMORPG
Developer(s)Square (before April 1, 2003)Square Enix
Producer(s)Hiromichi Tanaka (1999–2012)Akihiko Matsui (2012–)
ReleaseMay 16, 2002
DeveloperSquare Enix
ProducerNaoki Yoshida
ReleaseAugust 27, 2013
Registered players (as of 2019)18 million
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FINAL FANTASY MMORPGs Monetization
o Free Trial Accounts
o Main game & Expansions
o Upgrade to collector versions
o Subscription base economic
model
o Micro Transactions
o Incentives / Promotion / Event /
Influencers
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Payment Optimization
o Choosing payment partner
o UX
o Cards optimization
o APMs optimization
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Types of Fraud we are facing & How do they make money?o CNP fraud
o Bot / Cheat / RMT activities
o Account Take Over
o Currencies Exploit
o Payment Evasion
o Friendly Fraud
o Region Restriction Bypass
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Fraud prevention methods
o Cancellation & Refunds
o Account Procedures
o 2 Factor Authentication
o Rule Based Fraud Solution
o Machine Learning / AI
o RMT in-game counter
measures
o OTP / Software token
o Email Verification
o AVS – Geolocation
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Kevin GosschalkCEO & Founder
Bankrupting the Business Model of Fraud
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Connected FraudEcosystem
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Attacks Increasing in Size,Complexity and Frequency
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Travel
$45.53Subtotal
Entertainment
$164.65Subtotal
Social Media
$10.21Subtotal
Proof of Identity
$92.20Subtotal
Personal Finance
$710.65Subtotal
Online Shopping
$164.65Subtotal
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Breaking the Fraudsters Economics
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Thank you for joining us.Questions?
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Appendix
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Questionso What monetization means to you?
o What methods of payments are you using? What types the challenges
are you facing?
o What are the best strategies for payment optimization?
o What is fraud? What it means to you?
o What fraud prevention methods are you using?
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Panel DescriptionDraft
▪ Topic: Payment innovation in Digital and Gaming Content.
▪ Ho w to enable payments in the space.
o Payment in the background - involun
o Subscription -- monthly basis. There is a free version, limited content.. Incentives to upgrade to the
paid version | micro transactions
o Constantly trying to break into the model -- micro transactions vs. subscription (engagement)
o Local/APM
o SCA and PSD2 (exemptions.. Concerned about the EU region)
▪ What are the challenges folks face (customer experience vs. monetization)
o Price sensitivity
o How much free to give (game/paywall)
▪ How to navigate the rapidly evolving attack/fraud vectors.
o Using these platforms as testing grounds.
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Panel DescriptionThree acts:
Act 1: Focus on customer journey: Awareness, Engagement, Monetization. Customer
experience. The world of digital entertainment (media, gaming), engagement, path to monetization,
enabling. Struggles with subscriber retention
Act 2: Trust vs. Fraud: Deep dive on monetization (local payment methods, regulations),
subscription vs. micro transaction, navigating fraud, Balancing customer experience and trust
Act 3: The dark world of fraud and abuse. Why is the segment exciting for fraudsters, Attacks that
frusters make on the segment and what mitigation strategies business can employ