What Are Microtransactions? (And How Do They Affect Mental Health?)

Microtransactions are common in online games and other apps. These are quick in-app or in-game purchases that can include power-ups, additional gameplays, extra features, avatar upgrades, subscription renewals (if applicable), and “in-game” currency. While microtransactions may seem harmless, repeated spending habits can negatively affect a teen’s emotional regulation, impulse control, decision-making, and mental health.

Beachside Teen Treatment Center is a leading provider in behavioral health programs for adolescents aged 12-18. Call us today at (888)254-0916 to get your child the help they deserve.

What Are Microtransactions?

Microtransactions are small, in-game or in-app purchases that often appear as a pop-up while using or playing. These purchases offer users the opportunity to buy additional content, features, or advantages.

When you or your teen download a game to a laptop, desktop, tablet, or phone, there is often a warning to indicate that the game features “in-app” or “in-game” purchases. Oftentimes, you can choose to skip providing credit card information at the time of download. 

However, most game platforms (e.g., Microsoft, Steam, Apple, etc.) have payment information stored from something else so any charges related to in-game play will go to that card—sometimes without any additional notification.

Microtransactions + Online Gaming

Many people play games to pass the time on their mobile devices. Many games provide a certain amount of “free play” you can expect to enjoy. Some games reset the free allocation every few minutes, whereas some require hours or a day before you can resume accessing free content. 

When free play is no longer available, oftentimes, a small pop-up window appears to offer more gameplays (shots, soldiers, letters, words, etc.). This also comes with the opportunity to finish a level or win a campaign that you have spent hours working on. Otherwise, you might need to wait several hours or until the next day to reset the free play option.

Upgrading to a premium version or ad-free version of a game is an example of a microtransaction. In this case, developers rely on in-game ads becoming so annoying (or time-wasting) that players will pay a dollar or two to get rid of ads. Still, even with ad-free versions of games, microtransactions will appear throughout game play.

Usually, the fee is nominal. A few cents or a couple of dollars. Usually, it is not enough to make one think twice about clicking the “ok” button to continue playing. 

However, microtransactions are often more tempting to adolescents and teens who often have a device on a family cell phone plan linked to their parent’s credit card. Microtransactions fuel the success of countless online games popular among teens, such as Angry Birds, Bingo, Talking Tom, Roblox, and Candy Crush. 

The 4 Most Common Types of Microtranscations

The four most common types of microtransactions include the following:

1. In-Game Currencies: This is one of the most common types of microtransaction. This type involves fake in-game currency players can use to redeem for various rewards. 
2. Random Chance Purchases: Players are presented with a random “grab bag” of game rewards which could be worth more than the value paid. 
3. In-Game Items: Although the game is free to play, in-game items may be offered for purchase. These items are often far superior to what a player can earn or get with free play, and they often provide an advantage to players.
4. Expiration: Many games have play limits, items that wear out, or objects that can only be used a set number of times before waiting for a refresh. Some games will offer players the opportunity to pay to continue using their item or continuing gameplay.

How Microtransactions Affect Mental Health (Are Microtransactions Addictive?)

Microtransactions can have a negative impact on a teen’s mental health. This is because of how microtransactions work and because teens have lower thresholds for tolerating frustration as well as lower impulse control.

The following are ways that microtransactions affect mental health in teens:

Reward Systems and Instant Gratification

Microtransactions provide a reward to the user. In behavioral health, rewards can be in the form of positive or negative reinforcement. Both types of reinforcement incentivize a targeted behavior.

Positive reinforcement means that something additional is given for the behavior. For instance, a microtransaction may appear when the player reaches a certain milestone in the game. Thus, the player is positively rewarded by gaining something new, exciting, or advantageous such as a level-up, avatar upgrade, additional game play, or in-game currency.

Negative reinforcement, on the other hand, means that something invasive, unwanted, or annoying is removed as a way of rewarding a behavior. For example, a microtransaction that upgrades to an ad-free version, thereby, ridding the player of interruptions while playing the game. An additional example of negative reinforcement would be the opportunity to skip a challenging level to advance in the game.

Both types of reinforcement provide instant gratification to the player. In other words, once they select to purchase the microtransaction, there is no delay in receiving the reward.

Frustration and Financial Anxiety

Online games and microtransactions can also lead to frustration among teens. Adolescents are still developing their tolerance for frustration, also called a distress tolerance. Simply put, distress tolerance is a person’s ability to manage negative emotions like boredom, stress, or delaying gratification.

So, when a person’s distress tolerance is low, they will quickly try to resolve any negative feelings they experience. Oftentimes, this leads to impulsive behaviors for a “quick fix” to any frustration. Microtransactions can offer relief to frustration by promising an advantage, removing an obstacle, or providing instant gratification.

However, as the microtransactions continue, teens may experience financial anxiety once they realize the money that they’ve spent. This can lead to feelings of shame, especially after their parents find out or they receive a bill. 

In turn, they may turn to the games as a way of ridding themselves of the negative feeling of shame. And, thus, the cycle of shame and anxiety continues.

Risk of Addiction and Compulsive Spending

Online games and apps can be addictive, especially for teens with a low distress tolerance. In fact, the American Psychiatric Association (APA) has outlined diagnostic criteria for internet gaming addiction. The instant gratification of getting more points, bright lights and colors, and advancing in levels can be tempting as a quick fix to deal with negative emotions or provide a distraction.

Microtransactions enhance the addictive qualities of games and apps. This is because they can be used to get ahead in the game, speed up game play by removing ads, and add additional visual elements to the game.

In turn, this can lead to compulsive spending habits, similar to those present in behavioral health disorders like gambling addictions. In other words, teens think “just one more try and I can beat this game,” and agreeing to a microtransaction becomes automatic or feels more like a “need” than a “want.”

5 Ways Microtransactions Can Affect Teens

Microtransactions can affect teens in the following ways:

1. Microtransactions can lead to video game addiction and compulsive spending habits that negatively impact their emotional health. They might experience shame and low self-esteem due to their addictive behaviors. As a result, this can cause them to develop (or worsen) anxiety and depression.
2. Microtransactions and resulting game addiction may also lead to cognitive difficulties such as struggling to concentrate or focus on other tasks such as work or school. This is because the lure of gaming is stronger than the desire to complete these tasks.
3. Teens addicted to gaming might struggle to socialize or build healthy relationships with peers and family members. They might socialize only with other gamers who they’ve never met outside of the online community. Thus, they might lack the opportunity to develop social skills required during in-person interactions.
4. Addictive behaviors like gaming or internet addiction inhibit a teen’s ability to develop healthy coping skills for managing stress, anxiety, or frustration. Without healthy coping skills, they might become impulsive, easily agitated, or develop other addictions, like substance use disorders. Thus, there could be a connection between microtransactions and addiction.
5. Teens might also develop physical health issues, like obesity and sleep disorders. For example, if playing online games prevents them from engaging in sports or other forms of physical activity, this can lead to weight gain. Additionally, gaming late into the evening can disrupt your teen’s sleeping habits.

Signs That Microtransactions Might Be Harming Your Teen

There are behavioral and emotional signs that microtransactions could be harming your teen. It’s important to be aware of any significant changes to moods or behaviors, especially related to digital use.

The following are signs that parents should look out for:

Emotional Changes After Gaming/Spending

Teens struggling with microtransactions and online gaming addiction are prone to showing signs of emotional distress, especially after they finish playing. Or these signs might appear when you limit their cell phone use to curb their habits.

These signs may include the following:

• Mood swings
• Irritability
• Sadness

Secrecy About Spending

A major impact of microtransactions on teens is how they will go to great lengths to hide their spending habits. For example, they might deny their spending, blame a sibling, or become defensive. They may also do something drastic, like steal a credit card from someone else to prevent their parents from seeing the microtransactions.

How Parents Can Help Teens Navigate Microtransactions

The primary way that parents can help teens navigate microtransactions is by discussing them before your teen uses devices. That way, parents aren’t reacting after the fact. Instead, they are taking a proactive approach to foster independence in their teen.

The following are discussion points and tips for parents:

Open Conversations About Digital Spending

It’s best to be open and honest when discussing digital spending habits with your teen. This also means being non-confrontational and nonjudgment. Your teen likely feels some degree of shame about their compulsive behaviors, so approaching them harshly won’t foster healthy communication.

In other words, focus on problem-solving rather than punishment. If you must take your teen’s phone away from them, explain to them why this is helpful and not intended to punish them. Instead, you’re teaching them to limit their screen time.

In addition, talk to your teen about the marketing tactics that developers use to get them hooked on gaming and other apps. That way, they can recognize problematic apps before becoming addicted to them.

What Are the Addictive Features of Social Media Apps and Free Online Games? (Psychology of Microtransactions Explained)

According to the International Journal of Environmental Research and Public Health, the following are common features used to “prolong usage time of social media apps and/or Freemium games”:

• Endless scrolling/streaming: Features like auto-play or advancing to another level keep users engaged, as they don’t need to take additional steps to continue.
• Endowment/mere-exposure effect: Simply put, this means that the more time you spend on an app, the harder it is to detach or delete the app. This is why many games or apps prod users with notifications.
• Social pressure: Several online games, such as World of Warcraft (WoW) involve multiple players teaming up together to compete with other groups. Social pressure to belong to a group or to play at a specific time can make it difficult for teens to detach.
• Showing users of the app what they like: Oftentimes, games and apps will ask for access to a person’s data in order to target ads or other offerings to their unique preferences. Thus, if an app asks for permissions to access other apps on your teen’s phone or to link to social media accounts, they are likely trying to target content to keep your teen hooked.
• Social comparison and social reward: Social media apps in particular keep users engaged with comparisons and rewards such as getting “likes.”
• Zeĭgarnik effect/Ovsiankina effect: Classic studies by Zeĭgarnik and Rickers-Ovsiankina showed that interrupting a person during a task will make them feel more compelled to finish it (even if they aren’t required to). For example, extremely difficult levels in online games may cause users to lose all their lives. This interruption strengthens their need to continue, which may result in microtransactions to purchase additional lives or other advantages.

Set Spending Limits and Monitor Accounts

It’s best to set spending limits for your teen before they begin using apps. For example, if you are giving your teen a cell phone, discuss microtransactions and spending limits before they get their phone. This proactive approach can lower the chances of your child overspending.

Of course, even if you set a spending limit, your teen might overspend. Therefore, it’s important to also discuss the consequences of overspending before your teen gets the phone or other devices. Examples of consequences can be things like paying back the money, limiting cell phone use, blocking apps, and lowering the limit on spending.

This can be completed in the form of a contract with your teen. That way, they are involved in the discussion and could have more of a buy-in to the expectations. You can even have a very low spending limit at first that can increase after a few months of responsible spending. 

Get Help for Your Teen Today

Microtransactions can be the source of emotional or behavioral health issues for your teen. While you might set limits or monitor use, sometimes, teens struggle to control their cell phone use. Some negative effects can include low self-esteem, shame, anxiety, and depression.

If your teen is struggling with their emotional, mental, or behavioral health, we’re here to help. Contact Beachside Teen Treatment Center in Los Angeles, CA, today.