Essential payment solutions for independent game studios to handle global transactions
I still remember the first time I sold a copy of my game.
It was a Tuesday afternoon.
I was sitting in my bedroom, staring at the screen, and I saw the notification pop up.
Someone from Germany had bought my little platformer game!
I was so happy I almost spilled my juice.
But then, I looked at the money in my account.
It was… less than I thought.
A lot less.
Between the weird fees and the currency conversion, I lost a big chunk of my five dollars.
And then I got an email about something called “VAT” taxes, and I panicked.
I had no idea that selling games meant I had to be an accountant too.
That was when I started my long, confusing journey to find the Top Payment Gateways for Indie Game Developers.
The Big Giants We All Know
When you start, you usually go with what you know, right?
That makes sense.
You see these names everywhere on the internet.
PayPal is Like Your Old Comfortable Shoes
Everyone knows PayPal.
My grandma knows PayPal.
It is super easy to set up, which is why I used it first.
You just put a button on your website, and boom, you can take money.
But here is the thing about PayPal that nobody tells you until it is too late.
They can freeze your money if they think you look suspicious.
I had a friend who released a game, got a bunch of sales in one day, and PayPal locked his account because it “looked weird.”
He couldn’t buy groceries for a week.
Also, the fees can be kind of high if you are selling cheap games.
Stripe is the Cool Kid in Class
Then there is Stripe.[1][2][3][4]
Developers love Stripe because it is clean and pretty.
It lets you build the checkout right into your game or website so people don’t have to leave.
It feels very professional.
According to a recent article from Forbes on payment gateways, Stripe is often rated the best for customization.
But, and this is a big but.
Stripe doesn’t handle the taxes for you.
If you sell a game to someone in France, you have to figure out how much tax to pay to France.
That is a nightmare.
The “We Do The Taxes For You” Heroes
This is where I found out about a magical thing called “Merchant of Record.”
It sounds boring, but it is actually a life saver.
Basically, these companies act like the shopkeeper.
They sell the game for you, collect the tax, pay the tax to the government, and then give you the rest of the money.
Why Paddle Became My Best Friend
I switched to Paddle a few years ago and I never looked back.
They take a little bit more money from each sale than Stripe does.
But I don’t care.
I really don’t.
Because at the end of the year, I don’t have to fill out fifty different tax forms for fifty different countries.
They just send me one wire transfer and I am done.
It allows me to focus on making levels and fixing bugs, not reading tax laws.
FastSpring is for the Big Leagues
I looked at FastSpring too.
They are really good, but they felt a bit more “corporate” to me.
If you are a bigger studio with a few employees, they might be perfect.
They have amazing support and can handle really complicated subscriptions.
But for a guy like me working in his pajamas?
It felt like overkill.
Still, if you plan on being the next Nintendo, you should look at them.
Gateways Built Just for Video Games
Did you know there are companies that only do payments for games?
It makes sense when you think about it.
Selling a sword in a game is different than selling a t-shirt.
Xsolla is Everywhere You Look
You have probably seen the Xsolla logo if you play MMOs.
They are huge in the gaming world.
They are one of the Top Payment Gateways for Indie Game Developers because they understand us.
They let you sell in-game items, like gold coins or skins, really easily.
They also have this cool feature where they help you with marketing.
But, some gamers don’t like them.
I am not sure why, maybe they had a bad experience once?
But from a developer side, they offer a lot of tools that generic gateways don’t have.
Dealing with “Chargebacks” is Scary
This is a word that makes every developer sweat.
Chargeback.
It means someone bought your game, played it, and then told their bank “I didn’t buy this.”
The bank takes the money back, and you get charged a fine.
It is basically legal robbery.
Gaming-focused gateways usually have better protection against this.
They know that sometimes a kid steals their mom’s card to buy V-bucks.
The Federal Trade Commission has a lot of rules about this stuff, and good gateways help you stay on the right side of the law.
Don’t Forget the Rest of the World
We usually think everyone has a Visa card.
But they don’t.
If you want to sell your game in Brazil or China or India, you need different options.
Mobile Money is King in Some Places
In lots of countries, people pay with their phones.
They don’t use banks like we do.
If your payment gateway only takes credit cards, you are ignoring millions of players.
That is just leaving money on the table!
I read a report from Juniper Research that says digital goods payments are going to double in the next few years.
Most of that growth is coming from places that use weird local payment methods.
So, picking a gateway that supports “Alipay” or “Pix” is super smart.
What About Crypto?
Okay, I have to mention it.
Some people want to pay with Bitcoin.
I don’t really get it, personally.
It seems volatile and confusing.
But some gateways let you accept crypto now.[5]
If your game is about hacking or the future, maybe your players would like that?
Just be careful, because the value of the money can drop while you are sleeping.
FAQ: Stuff I Wondered About
Here are the questions I was asking Google at 3 AM.
1. Which one is the cheapest?
Usually, Stripe is the cheapest for raw fees. But remember, “cheap” isn’t always best if you have to hire an accountant later.
2. Can I use more than one?
Yes! You can have PayPal and Stripe on your website.[3][4] Giving people choices is usually a good idea.
3. Do I need a business bank account?
Technically no, but you really should get one. Mixing your game money with your sandwich money makes taxes a nightmare.
4. What happens if I ignore the tax stuff?
Please don’t do that. Governments can be very grumpy if they don’t get their money. It is not worth the risk of a fine.
5. Is Xsolla expensive?
They take a bigger cut, usually around 5% plus a fee. But they handle a lot of the headache for you, so it balances out.
Random Thoughts While Writing This
I really need a new chair.
My back hurts.
Anyway, it is kind of wild how complicated selling a $5 game is.
You would think in 2024 it would be just one button.
“Click here to give me money.”
But no, we have laws and banks and fraud.
It keeps the world safe, I guess, but it is annoying for us little guys.
I wonder if I should make my next game free and just ask for donations?
No, that never works.
I need to eat.
My Final Honest Advice
Look, picking a payment gateway isn’t the most fun part of making games.
It is boring.
It is technical.
But it is the bridge between your hard work and your reward.
If the bridge is broken, nobody can cross it.
If you are just starting out and you are terrified of taxes like me, go with a Merchant of Record like Paddle.
It costs a little more, but the peace of mind is worth gold.
If you are brave and want to save every penny, go with Stripe.
Just make sure you read up on the laws.
Don’t let this stuff stop you from making your dream game.
The world needs your weird, wonderful art.
Just make sure you have a way to get paid for it!
Now, go finish that level you have been stuck on.
You can do it.
And hey, if you found this helpful, maybe check out my other post about How to Market Your Indie Game without a Budget.
It pairs really well with this one.
Good luck, friend!
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