Open Banking Payment Flow for Gaming: Key Benefits

Open banking payments are a game-changer, quite literally, for the online gaming experience. More and more players globally choose this payment method when it’s provided.

The rationale is simple: pay-by-bank offers a much better user experience (UX) compared to traditional payment methods. In this article, we will look at open banking payment flow, specifically in the context of online gaming.

What Is Open Banking & Pay-by-Bank?

The PSD2 regulation in the EU required traditional banks to open up customer data to authorised fintech companies via secure application programming interfaces (APIs). This ended the banks' monopoly of customer information. Open banking is strictly regulated and demands explicit customer consent for data sharing.

This emerging financial technology fueled the development of the Pay-by-Bank method, also called account-to-account (A2A), which utilises the open banking ecosystem.

In gaming, it allows players to make payments for in-game items on the web directly from their bank accounts, bypassing card networks, which result in lower fees for publishers. Players authorise transactions using their online banking credentials. The funds are instantly transferred to the publishers' merchant accounts.

Web-to-App Redirection

Web-to-app redirection is a significant UX advantage of an open banking flow in gaming. It allows players to smoothly switch between the gaming apps Web Store and their trusted online banking app to authorise a transaction.

Here's how it works: web-to-app redirection sends users directly to their chosen banking app to give consent for a payment. If the banking app isn't installed, users are automatically redirected to an optimised banking website.

This process greatly enhances the gaming experience by eliminating the need for manual entry of payment details. It speeds up and simplifies the player’s payment journey while reducing cart abandonment.

Case Study: Noda & Wargaming

An increasing number of gaming merchants are leveraging open banking for their benefit. In February 2023, Wargaming, a renowned online game publisher, partnered with Noda to integrate instant open banking payments in gaming. This collaboration enabled Wargaming's players to enjoy a variety of online payment options, including pay-by-bank.

“We are thrilled to partner with Wargaming, a company at the forefront of providing gamers with the latest Open Banking payment technology,” said Sebastian Totté, Head of Gaming at Noda. “We believe Noda’s payment solution will enhance the gamer payment experience by simplifying the checkout process, allowing more time to enjoy gaming rather than dealing with complex payments flows,” he added.

Open Banking Payment Flow in Gaming

To better understand players’ payment flow when using open banking methods, let’s look at the Wargaming example more closely. Below is the video of a Wargaming player’s journey when paying with Noda’s open banking.

Web Payment Flow

The player starts at the gaming interface, navigating their way into the premium shop. When the player chooses what they want to buy, and initiates the payment, they are offered a list of payment methods. From there, the player selects the pay-by-bank button, powered by Noda.

The player is directed to a checkout interface, where they can easily choose their bank. In the above example, they select Revolut.

The player then gets the option to continue on the Revolut app, or pay by a QR code on mobile. This is where seamless app-to-app redirection works its magic. They log in to their banking app, and authorise the payment. Vois la, the payment is completed. The player is directed back to the Wargaming website.

Hence, the player’s payment flow is as follows:

1. Player initiates the payment
2. Player chooses pay-by-bank
3. Player selects their bank
4. Player is re-directed to their chosen banking app
5. Player logins & authorises the payment
6. Payment is complete, player is directed back to the gaming interface

Mobile Payment Flow

The player’s payment journey on mobile is fairly similar, if not smoother. After the player initiates the payment, they are given the list of payment methods. When they select pay-by-bank, they are taken to a page with the list of available financial institutions.

The player selects their bank, in this case Revolut, and is offered to be transported to their banking app. Web-to-app redirection takes them to the Revolut mobile app already installed on their phone to log in and authorise the payment. The transaction is complete in seconds and the player is taken back to the Wargaming app.

The mobile payment flow is therefore similar to web:

1. Player initiates the payment
2. Player chooses pay-by-bank
3. Player selects their bank
4. Player is re-directed to their chosen banking app
5. Player logins & authorises the payment
6. Payment is complete, player is directed back to the gaming interface

Benefits of Open Banking for Player’s Journey

Pay-by-bank flow offers significant benefits to the gaming experience, for example:

• Seamless Redirection: Players are smoothly redirected between the gaming app and their banking app, smoothing the UX.
• Instant Payments: Funds are transferred directly and immediately, allowing players to enjoy their purchases without delay.
• No Manual Data Entry: Players can authorise payments using their trusted banking app, removing the need to enter card details manually.
• Enhanced Security: Transactions are authorised through secure banking apps, reducing the risk of fraud and protecting sensitive information.
• Intuitive UX: The app-to-app redirection process is intuitive, making the payment journey straightforward and user-friendly.

Open Banking with Noda

​​Noda is a global open banking provider that assists online merchants with end-user KYC, payment processing, LTV forecasting and UX optimisation. We partner with 2,000 banks across 28 countries, spanning over 30,000 bank branches. Noda supports a wide range of currencies for globally-minded clients. We offer scalable plans to fuel your business growth and e-commerce plugins for easy integration.

With Noda's advanced Open Banking API, online businesses can easily integrate direct bank payments, offering their customers a seamless and secure payment experience with lower fees. Whether you're looking to enhance customer verification processes, optimise payment systems, forecast long-term value, or refine the user experience, Noda is your partner in growth.