Top 5 Benefits of Using a Merchant of Record for Your Gaming Business

Remove Global Complexities with a Single Merchant of Record

For gaming businesses expanding across borders, operational complexity grows fast. Managing payments, staying tax-compliant, and handling fraud risk across markets can quickly become a full-time job—and a costly one at that.

That’s where a Merchant of Record (MoR) steps in.

An MoR handles all the backend work—like collecting taxes, following local rules, dealing with fraud, and more—so you can focus on what you do best: building great games and growing your player base.

This is especially useful in Asia-Pacific (APAC), where payments are fragmented, regulations can be strict, and fraud risk is high. Whether you’re a small indie team or a large publisher, working with an MoR makes it easier to manage your operations and scale into new markets confidently.

Here are five ways a Merchant of Record can accelerate your growth in APAC.

1. Stay Compliant, Stay Confident

Trying to keep up with different tax laws across multiple countries is one of the biggest challenges for gaming companies. VAT, GST, and digital service taxes vary by country—and they’re constantly changing.

An MoR takes this off your plate by:

• Tax collection and remittance across all active markets
• Regulatory filings and audit support
• Keeping up with new local rules so you don’t have to

Why This Matters in APAC

Tax regulations in APAC vary widely, and some countries require local business entities to operate legally. An MoR eliminates these hurdles, making it easier to sell. Tax remittance and audits handled also significantly reduce administrative overhead and legal risks. 

*Tax regulation in the Philippines: 12% VAT on digital services

**Tax regulation in South Korea: Strict digital tax laws

To learn more about regulations in Asia, read our latest whitepaper with Niko Partners—Gaming Growth Unlocked: Insights on Distribution, Payments, and Regulations in Asia.

2. Protect Revenue with Smarter Fraud Prevention

Fraud is a big problem in online gaming, and it’s getting worse. 

In 2023 alone, online businesses lost more than US$48 billion to e-commerce fraud. The gaming sector, with its high volume of fast-paced transactions, is especially vulnerable. 

Fraud in the online gaming sector increased 64% year-over-year on average between 2022 and 2024, with issues like stolen credit card usage, chargeback abuse, and account takeovers causing revenue losses. 

An MoR helps mitigate these risks and keep your revenue safe.

At Coda, our fraud agents work 24/7 to monitor transactions and act fast when something suspicious comes up.

This is especially important in APAC, where players often pay using e-wallets, mobile wallets, or carrier billing instead of credit cards. These methods are harder to monitor using traditional tools, and about 34% of fraud in the Asia-Pacific region is linked to these newer ways to pay.

With an MoR that knows the region well, you can keep payments secure without losing out on conversions.

3. Boost Payment Success with Localized Payment Routing

If players can’t pay, they can’t buy.

Losing revenue due to failed transactions is a significant issue for game publishers, especially when dealing with a global playerbase. Payment failures can result from various factors, including:

• Bank declines & cross-border friction – Payments may fail due to currency restrictions or international banking rules.
• Lack of localized payment options – Players may abandon purchases if their preferred payment method isn’t available.
• Limited payment gateway coverage – Some markets have restricted or unreliable payment infrastructure.

That’s a lot of potential revenue left on the table. An MoR helps you avoid these issues with:

• Multi-PSP (Payment Service Provider) integration: MoRs connect with multiple PSPs, increasing the likelihood of successful transactions. 
• Dynamic payment routing: Transactions are automatically routed through the best-performing PSP, reducing failures.
• Support for local APMs: Players in APAC often prefer e-wallets, bank transfers, and carrier billing over credit cards. An MoR integrates these options seamlessly.

By integrating multiple PSPs and local APMs, payment transactions see higher success rates than relying on global processors alone. This ensures the highest conversion rates by leveraging localized payment expertise.

Looking to scale globally? It’s not always straightforward–some local payment methods require local entities to integrate. At Coda, we work closely with top regional PSPs and localized payment methods to make sure your players always have a smooth, reliable way to pay.

4. Scale Transactions Globally Without the Growing Pains

Expanding into new markets takes more than translation. You need to set up payments, comply with local laws, manage taxes, and match regional payment preferences—all of which demand time, money, and effort.

Working with an MoR makes global expansion simpler. You can:

• Enter new markets faster—no local company or legal entity needed
• Accept payments in local currencies—without worrying about exchange rate swings
• Stay compliant with all the local rules—without building a big compliance team

5. Reduce Operational Costs, Improve Player Experience

MoR partnerships can create wins for you and your players altogether. 

Managing payments in-house comes with a lot of responsibilities. Beyond the direct costs of staffing, companies must also invest in fraud prevention tools, tax specialists, and legal advisors. With an MoR, you can outsource all of that to a single partner. You cut down on internal resources, save time, and reduce stress.

Your players benefit, too. A good MoR offers them:

• Faster checkout with payment methods they’re used to
• Fewer payment errors or declines
• A smoother experience that keeps them coming back

 A seamless payment experience drives more purchases—and keeps players coming back.

Bonus: More Tools to Grow Your Business

An MoR isn’t just about simplifying payments. It can also help you make better decisions and grow smarter with the right tools and insights.

With Coda as your MoR, you access:

Smart dashboards and analytics

Track player spending behavior, payment performance, conversion rates, and more. Our partners get access to dashboards that track not just revenue and transactions, but data they can use to improve retention, pricing, and engagement strategies.

Out-of-app payments

With app store fees getting more expensive and regulations tightening, many publishers are looking beyond the app. Our suite of out-of-app commerce solutions allows partners to reach more players while keeping more of their revenue – no app store fees, no unnecessary cuts.

An MoR is more than just a payments provider for any gaming business — it’s payments and operational complexities, simplified. Think compliance, tax management, fraud, payment optimizations and global expansion.  

Especially with APAC’s unique market challenges, leveraging an MoR ensures that you can focus on creating immersive gaming experiences rather than dealing with regulatory headaches.

Want to streamline your payments and scale faster? Scale your game worldwide – learn how our MoR makes it simple. Connect with us.

Disclaimer: The information provided in this article is for general informational purposes only and is not intended as legal, tax, or regulatory advice. Readers should consult their own professional advisors to understand how these concepts apply to their specific circumstances.