Los Angeles, CA- June 17, 2011
The Electronic Entertainment Expo (E3 Expo), held at the Los Angeles Convention Center, is the world's premiere global gaming convention where the gaming community comes together to showcase their games and network. The 2011 E3 Expo provided Xsolla (formerly 2Pay), a global Virtual Currency reseller specializing in online games- and an exhibitor at the 2011 E3 Expo- the opportunity to connect with game developers and publishers, many of whom are looking for monetization solutions in growing regions such as Latin America, MENA countries (Middle East-North Africa), and Russia, where Xsolla offers more payment options than any other VC monetization service. This was only Xsolla's second year at the E3 Expo, but due to the incredible growth the company has experienced in the last year, there was never a dull moment in Xsolla's booth.
Xsolla's Vice President and Co-Founder, Albert Donahue believes that the reason for this is simple:“As America is already very saturated in social games, gaming publishers are looking for opportunities in countries that are growing in social and online gaming. Latin America is one of those regions; it is one of the fastest growing regions in the world for online gaming because of its rapid growth in digital entertainment and media- Broadband households are expected to double in the next 5 years, and the number of mobile Internet access subscribers will grow by more than 400% over the next 5 years in Latin America- this presents a huge opportunity for online and mobile games, and Virtual Currency. Because we offer more payment options in Latin America than any other VC reseller, gaming publishers are coming to Xsolla because they want to be able to sell their Virtual Currency in those countries. In addition, we offer no installation fees, no currency exchange fees, and no chargeback fees, which is rare in this industry.” According to a recent market study by SuperData Research, Latin America's Virtual Goods market is expected to grow to $517 million in revenues by the year 2012.
MENA countries (which includes middle eastern countries, Turkey and North Africa) have over 56 million Facebook users, with over 19 million users joining in the past year alone. This represents a one-year growth rate of 51%. The majority of Facebook users in MENA countries are male, which represents the demographic of the typical gamer. Because Facebook is leading the social games platform, this represents a huge opportunity in MENA countries, where Xsolla offers more payment options than any other Virtual Currency reseller. Online and social games also continue to grow in Russia and Eastern Europe, mainly due to the increasing rate of social network users, which is estimated to be 60 million users. Xsolla is the #1 Virtual Currency reseller in Russia and Eastern Europe, offering more payment options than any other monetization service.
In addition to the wide variety of payment options offered in growing regions, Xsolla offers no installation fees, no currency exchange fees, and no chargeback fees. This surprised many developers and publishers at E3 because most payment gateway services charge fees to setup the service, as well as fees when a payment is returned (known as a“chargeback”). Online gaming has a high rate of fraud due to stolen credit cards and money laundering - Xsolla's Fraud Protection covers chargebacks, which is extremely important for Game Publishers, who lose a lot of money due to Chargebacks, up to 10% of revenue in many cases.
Xsolla also offers insightful data on players- who the players are, where they are located, when they are playing the games, and how they are paying for it. This information is very important to publishers, because it helps them to understand their players' habits. Xsolla helps gaming publishers increase their ROI (Return-On-Investment) through customer retention.. It is for these reasons that Xsolla has grown so rapidly in the last year, and why Xsolla believes that E3 was such a success- CEO Alexandr Agapitov, who started 2Pay (now Xsolla) in Russia 6 years ago saw it coming.. According to Agapitov,“I was confident in the success of this company and had no intention of becoming homeless.”
Xsolla, a leading payment service provider in Europe and the United States, has been developing monetization tools for MMO, Social, Mobile and Casual Games for 6 years. Xsolla's headquarters are in Woodland Hills, California (L.A.), with offices in Russia, Ukraine, and Belarus. Xsolla provides global payments solutions with easy integration and high payment conversion rates. Xsolla partners with over 150 payment options: credit and pre-paid cards, mobile payments, premium SMS, E-wallets, cash and e-cash, payment kiosks and offers— all within one platform- with no installation, currency exchange or chargeback fees. Xsolla also provides extended data that allows its partners to analyze their players' habits and payment options used, which is essential for successful monetization.
Xsolla works with more than 300 publishers worldwide: Gameforge, Bigpoint, burda:ic, InnoGames, Wargaming, TravianGames, Kalicanthus, Koramgame, iJet Media, Innova Systems, Mail.ru, and more.