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	<title>Comments on: Why Pay By Credit When You Don&#8217;t Have To Pay By Kwedit</title>
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	<link>http://sketharaman.com/blog/2010/03/02/why-pay-by-credit-when-you-dont-have-to-pay-by-kwedit/</link>
	<description>Personal Blog of Ketharaman Swaminathan</description>
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		<title>By: Ketharaman Swaminathan</title>
		<link>http://sketharaman.com/blog/2010/03/02/why-pay-by-credit-when-you-dont-have-to-pay-by-kwedit/comment-page-1/#comment-12864</link>
		<dc:creator>Ketharaman Swaminathan</dc:creator>
		<pubDate>Sun, 14 Mar 2010 15:46:40 +0000</pubDate>
		<guid isPermaLink="false">http://sketharaman.com/blog/?p=560#comment-12864</guid>
		<description>Update: 

Kwedit recently announced that it had a 26% repayment rate. In other words, 3 out of 4 people opting for Kwedit do not pay up. 

According to one school of thought, even one paying customer out of four translates into a very attractive monetization proposition for game publishers who otherwise are able to convert only 1-3% of users into paying customers. 

This logic is valid only if Kwedit&#039;s numbers represent incremental customers who wouldn&#039;t have otherwise paid by credit card or other  payment methods. However, if game publishers discover that people opting for Kwedit have cannibalized their usual payment methods enjoying close to 100% repayment, they aren&#039;t going to be too happy with Kwedit. 

Hopefully, we&#039;ll hear from them one way or the other down the road.</description>
		<content:encoded><![CDATA[<p>Update: </p>
<p>Kwedit recently announced that it had a 26% repayment rate. In other words, 3 out of 4 people opting for Kwedit do not pay up. </p>
<p>According to one school of thought, even one paying customer out of four translates into a very attractive monetization proposition for game publishers who otherwise are able to convert only 1-3% of users into paying customers. </p>
<p>This logic is valid only if Kwedit&#8217;s numbers represent incremental customers who wouldn&#8217;t have otherwise paid by credit card or other  payment methods. However, if game publishers discover that people opting for Kwedit have cannibalized their usual payment methods enjoying close to 100% repayment, they aren&#8217;t going to be too happy with Kwedit. </p>
<p>Hopefully, we&#8217;ll hear from them one way or the other down the road.</p>
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