Strong Growth of the Online Entertainment Space
HONG KONG - Recently, XanPay announced a partnership with SWAG, a leading online entertainment interactive brand, to launch new alternative payment methods. Online entertainment experienced exponential growth during the pandemic. According to a related report, the worldwide traffic of online entertainment has grown substantially during the COVID-19 period. The increasing number of people working from home and restrictive social distancing measures has made online entertainment avenues extremely popular.
SWAG gained the upper hand against its competitors during this period partnering with a payment gateway specialized in alternative payment methods, XanPay.
Challenges of Online Entertainment Platforms in High-Risk Industry
SWAG is one of Asia's largest online entertainment interactive brands. The Taiwan-based company started in 2017 with a team of 80 employees. They have come a long way to establish themselves as the leader in the region.
For those who are unfamiliar, there are major challenges and taboos that the alternative online entertainment space constantly faced for decades:
Many financial institutions (FIs) consider merchants in this industry as 'high-risk'
'High-risk' merchants faced extreme scrutiny and long approval lead times
Payment gateways that are accepting of these merchants usually charged exorbitant fees, sometimes nearly 20%
Unnecessary and tedious paperwork and processes
Perceived as risky business due to the high possibility of high chargeback
It wasn't any different for SWAG and they encountered many such obstacles over the years, but they continued to look for solutions that support the online entertainment content creator industry. Research shows that local payment methods or alternative payment methods (APMs) are 3x more popular than credit cards across APAC.
So, they began to look for local payment gateways which provided alternative payment methods (APMs) across Asia. However, issues like poor API integration documentation and having payment gateways that disappeared without response - made it difficult for them to break into new markets.
Reliable Payment Gateway in the APAC Region
When OnlyFans announced an official ban, the SWAG team onboarded many of the online entertainment content creators. They were determined to provide a reputable source of entertainment as well as income to their content creators.
After getting to know about XanPay, SWAG integrated and went live with new payment options within a week. Immediately, they observed payment adoption from across 8 new countries. Singapore, Malaysia and Hong Kong became their biggest markets in this region. Additionally, the number of payment issues reported by users had also drastically reduced.
Since then, XanPay accounts for up to 90% of their payment transactions in the new markets that they expanded to.
Generated revenue from 8 new Asian countries within a month of integration
About 50% of the transactions are from XanPay vs non-XanPay
Grew their revenue and transaction volume by 5% within 3 months of integration
No. of payment issues reported by users drastically reduced
Ability to focus on bigger marketing and expansion plans
Acquired new users with XanPay processing up to 90% of the transaction volume in SEA
"XanPay is our one-stop payment gateway in Asia. They solved our pain points. Not only are we able to reach new users and markets, but our alternative payments in the SEA region are also now managed by them, which is amazing." - Allan Lei, CTO of SWAG
XanPay has become their one-stop payment gateway solution using the full checkout page option. By getting the right payment gateway, the SWAG team gets to focus their efforts on bigger business plans.
SWAG now aimed to deepen its reach into Vietnam, Thailand and Indonesia.
XanPay is a unique payment gateway specialized in serving global customers locally. XanPay partners with organizations and small businesses to scale quickly and achieve outcomes through modern cross-border payment solutions. For XanPay, modern means widely adopted, seamless, convenient and secure. As a fast-growing payments company, XanPay built connections across 490 local banks in over 10 countries, enabling any businesses in the ecosystem to accept easy payments competitively. Shaping the next-generation payments landscape by bringing greater financial access.
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Carrine Eng, Marketing & PR Manager