The Tokyo Game Show (TGS) offers a clear window into how overseas game companies can overcome barriers to success. The secrets to unlocking payment growth are within reach. As Japan’s premier gaming event, Tokyo Game Show 2025 (TGS2025) will be held at the Makuhari Messe in Chiba from September 25th to 28th, centered on the theme “Unlimited, Neverending Playground”.
The payment process is far more than the final step of a purchase; it is a pivotal factor influencing a game’s overall revenue and shaping the user experience. With the widespread adoption of subscriptions and in-app purchases (IAP) on mobile and PC, payments have become an integral part of the gaming journey. A smooth, frictionless payment process preserves player immersion, supports continuity, and directly impacts user retention and conversion rates. For gaming companies, optimizing this experience is key to overcoming growth bottlenecks and boosting profitability.
The array of payment methods overseas imposes high integration and operational costs. In Japan, gamers commonly use a variety of different payment methods such as credit cards, convenience store payments (konbini), digital wallets, mobile carrier billing, and prepaid cards. These preferences are deeply ingrained. Localizing payment options is crucial for building consumer trust and brand loyalty. Failure to adapt to these habits leads to a poor user experience, resulting in abandoned purchases and user churn. experience, resulting in abandoned purchases and user churn.
Japan’s payment market is jointly regulated by several institutions. The Financial Services Agency (FSA) supervises financial services, encompassing banks, securities exchanges, and the insurance industry. Concurrently, the Ministry of Economy, Trade and Industry (METI) oversees the bank card payment business. This results in a comprehensive and stringent regulatory framework.
Japan’s Consumer Contracts Act also provides protection against fraud and unauthorized transactions. When consumers identify unauthorized account deductions, they can raise an objection, obligating the company to promptly provide documentation that proves the transaction’s legitimacy. Furthermore, in response to the growing severity of payment fraud, METI has mandated that all e-commerce businesses implement 3D Secure 2.0. Businesses accepting credit card payments must complete this deployment by the end of March 2025. This not only raises security standards for e-commerce platforms but also introduces additional technical and compliance challenges for game companies expanding overseas.
Additionally, the Payment Services Act regulates prepaid payment instruments, such as in-game virtual currency. It requires certain entities to fulfill obligations that include registering with the Finance Bureau, safeguarding customer funds when unused balances exceed 10 million yen, and adhering to further compliance requirements concerning data security and complaint handling. These obligations apply equally to overseas gaming companies selling virtual items in the Japanese market.
Mainstream app stores, including the App Store and Google Play, charge commissions of approximately 30% on in-app purchases in Japan and most other countries. This represents a significant cost burden that directly impacts the profit margins of game developers.
Multi-currency payments inevitably involve exchange rate risks and foreign exchange fees. Like an invisible hand, fluctuating exchange rates can significantly impact costs and profitability. High cross-border transaction volumes and long settlement cycles create a time lag, and failure to lock in favorable rates can lead to direct profit loss. This is especially true in gaming, where small, high-frequency payments are common, as frequent conversions increase fees and slow capital turnover.
Integrating with overseas payment systems often involves complex APIs, cumbersome certification, and unique localized requirements, particularly in Japan. Development teams must invest significant time and resources in adaptation and testing, increasing initial costs and potentially delaying market entry if technical issues arise.
To help gaming companies overcome these hurdles, Evonet provides comprehensive payment solutions that integrate transaction processing, compliance, risk control, and currency exchange services, empowering successful overseas expansion.
For international card payments, Evonet has partnered with several local Japanese acquiring banks. Through an “agent-inclusive” cooperation model, it facilitates the acceptance of Visa and Mastercard. Evonet also maintains direct connections with JCB and is an acquirer for JCB, American Express, and Diners Club. This provides overseas gaming companies with comprehensive payment capabilities covering all mainstream international card schemes.
Authorized by Japan’s Ministry of Economy, Trade and Industry (METI) as a registered merchant acquirer, Evonet leverages its deep market knowledge to provide comprehensive support. We assist with payment security, data protection, and localized qualification filing, allowing our partners to navigate market entry barriers with confidence. Our local team and expert consultants also offer business support, including guidance on establishing customer service centers and complying with commercial and capital law requirements.
Leveraging massive transaction data and machine learning, Evonet has established a highly accurate risk prediction system. We design customized risk control rules based on a company’s business model, target market, and risk appetite. Our system continuously learns and optimizes in real-time, ensuring secure and smooth transactions so companies can focus on their players and core business.
We provide flexible settlement cycles to meet diverse fund management needs:
Today’s Exchange Rate: Locks in the rate on the transaction date, protecting against losses from large fluctuations and enabling better cost control.
Settlement Date Exchange Rate: Ideal for businesses with frequent cross-border transactions, this option centralizes fund settlement to optimize capital recovery and improve utilization efficiency.
Evonet also provides a transparent, visual path from transaction to settlement, giving companies clear insight into their funds.
Our drop-in integration solution streamlines the payment system integration process while allowing for personalized development. This enables teams to focus on core game features rather than payment complexities. Furthermore, our system features intelligent routing optimization and an automatic retry mechanism, dynamically selecting the best channel based on real-time success rates and handling errors or timeouts automatically. This reduces the global expansion burden and accelerates a game’s launch.
On the road to global expansion, gaming companies face more than just language and cultural differences; they must also navigate payment methods, regulatory compliance, exchange rates, and technical access. Evonet provides a comprehensive, one-stop payment solution to address these challenges, transforming every payment into a seamless bridge that connects players to the gaming world and empowers companies to accelerate their growth.
