Unlocking games revenue: player behavior and payment trends in the west | Newzoo x Tebex Whitepaper

Tebex, the leading payments solution for gaming, reaching $1Bn in processed payments and powering over 30,000 web stores, is launching the first industry-wide look at payment trends in EU and NA with Newzoo on Tuesday, August 12 at 09:00 AM CEST.

Why This Data Matters

In a maturing Western games market with slowing payer growth (North America: +1.1% CAGR, Europe: +3.1% CAGR, 2023-2027), studios must shift from acquiring new players to maximizing value from existing ones. The data reveals critical insights into player motivations, spending patterns, and payment preferences, enabling developers to craft targeted monetization strategies that boost revenue, enhance retention, and align with player expectations.

Global Market Snapshot (2025)

• Market Size: $188.9B (+3.4% YoY), with North America ($52.7B, 28%) and Europe ($33.1B, 18%) driving 46% of global spend despite housing only 20% of players (3.54B total).
• Payer Spending Power: North America leads with $324.9 avg. annual spend per payer; Europe averages $125.4 ($170.0 Western, $51.6 Eastern).
• Value: High per-payer spend in Western markets highlights the opportunity to deepen monetization through tailored strategies.

Spending Motivations Drive Strategy

• North America: 34% of payers spend to unlock exclusive content, 29% for personalization (character customization), reflecting a desire for self-expression. Studios can capitalize by offering unique cosmetics and content packs to drive engagement.
• Europe: 28% prioritize deals/offers, 21% value ad-free experiences, showing value-driven behavior. Discounted bundles and subscription models can increase conversion in this region.
• Value: Understanding regional motivations allows studios to align offerings with player priorities, enhancing loyalty and spend.

Diversified Spending Patterns

• North America: 27% of payers invest in content packs, power-ups, and in-game currencies, with subscriptions (24%) and battle passes (23%) also strong.
• Europe: In-game currencies and content packs lead (21% each), followed by subscriptions (20%) and gear/time-savers (18% each).
• Value: Diverse spending across virtual goods underscores the need for varied monetization options to capture a broad range of player preferences, boosting average transaction value (ATV).

Payment Methods Unlock Higher Spend

• ATV Trends (2025): Overall, ATV rose from $30 (2024) to $40. BNPL (North America: $85.0, Europe: $72.0) and crypto (North America: $94.8, Europe: $111.6) outperform cards (North America: $52.2, Europe: $42.7).
• Dual-Method Impact: Players using cards + BNPL/crypto maintain transaction frequency while spending more.
• Value: Offering alternative payment methods like BNPL and crypto can significantly increase ATV, especially in Western markets, without sacrificing transaction volume.

Revenue by Platform and Genre

• Microtransactions (MTX): Drive 49% of PC and 52% of console revenue in North America; 42% (PC) and 51% (console) in Europe. Mobile is near 100% in-game revenue.
• Top Genres: North America favors shooters, Europe prioritizes sports, with RPGs and puzzles strong in both.
• Value: High MTX revenue and genre preferences guide studios to focus on live services and region-specific content to maximize engagement.

Strategic Takeaways

• Deepen Monetization: With modest payer growth, studios must focus on existing players by offering personalized content and value-driven deals.
• Diversify Payment Options: Cards and wallet still dominate in volume, but integrating BNPL and crypto can unlock higher ATV, especially in Western markets.
• Align with Player Values: Transparency, fairness, and seamless payment experiences reduce churn and build loyalty in a competitive market.
• Understand the why and how players spend: NA players are more likely to spend for personalization and self-expression, while EU players are more value-conscious, prioritizing deals and an ad-free experience.

Quotes

Liam Wiltshire Head of Payments & Compliance at Tebex

“The future of gaming is about flexibility – meeting players where they are, with the methods they trust.”

This quote summarizes the importance of adapting to player-preferred payment methods like wallets, BNPL, and crypto to enhance accessibility and trust.

“Virtual currencies and microtransactions are no longer just revenue streams – they’re becoming strategic levers for retention and differentiation.”

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This emphasizes the evolving role of microtransactions beyond revenue, focusing on engagement and player retention.

“Today’s players want to know what they’re paying for – and why. How you monetize matters more than ever.”

This highlights the need for transparency and fairness in monetization to build player trust and loyalty.