This story was written by Rafat Ali.
PlaySpan, a Santa Clara, CA-based in-game commerce network, has bought out PayByCash, an alternative payment system for online games, virtual worlds and social networks. Terms were not disclosed. PlaySpan raised a $6.5 million first round last year, led by Easton Capital, Menlo Ventures, STIC and Novel TMT Ventures.
PayByCash was started 10 years ago, and will continue to operate as an independent brand. It has about 70 different payment methods, and supports over 200 countries. Its "Ultimate Game Card" pre-paid card is being used by gamers to buy virtual currency and other items in games.
Companies like PlaySpan and LiveGamer are now trying to become official commerce provider for game publishers, hoping to avoid the controversies that companies like IGE have been mired with, including "gold farming", which all game publishers have banned.
By Rafat Ali