PlaySpan

About PlaySpan

PlaySpan operated as a payment solutions provider focused on the digital goods and online gaming markets. The company was established in 2006 by Karl Mehta and Alex Fries. The inspiration for the business reportedly came from Mehta's son, an avid online gamer who was selling virtual items to other players, highlighting the need for a unified commerce platform for in-game goods. Despite Mehta's lack of experience in the gaming industry and initial resistance from venture capitalists, he secured seed funding to develop the platform.

PlaySpan's core offering was a "Monetization-as-a-Service" (MaaS) platform. This platform provided a suite of services for publishers and developers of online games, social networks, and digital media to monetize their content. It integrated features like a virtual goods storefront, global payment processing, and fraud and risk management into a single, web-based service. The business model was likened to an Amazon, eBay, and PayPal specifically for virtual goods, facilitating transactions both from publisher to player and player to player. Its UltimatePay product enabled users to make in-app purchases using over 85 payment methods across 180 countries. The company primarily served game publishers and developers, helping them generate revenue and manage the commerce aspects of free-to-play business models.

The company achieved significant milestones, including raising approximately $46.3 million in funding over four rounds from investors such as Easton Capital, Menlo Ventures, Vodafone, and Softbank. PlaySpan also grew through acquisitions, purchasing Internet Payment Solutions in 2008 and Spare Change Payments in 2009. The company's growth trajectory culminated in its acquisition by Visa Inc. in March 2011. The deal was valued at approximately $190 million in cash, with potential performance-based additions. This acquisition extended Visa's capabilities into the rapidly expanding digital goods and mobile commerce sector.