Latin America (LatAm) is home to a vibrant and expanding gaming community that is experiencing rapid growth in both user base and revenue. and 355 1 million gamers contributed to their expectations $14 Latin America will emerge as a key growth region for global gaming companies in 2024, according to Eduardo de Abreu, vice president of products at EBANX, a leader in localized payment solutions. ) It is said that it is creating a huge opportunity for companies.
De Abreu highlighted this outlook in a recent interview with Fintech News Singapore, saying that rising smartphone penetration, increased digital payments and the growing popularity of mobile gaming will give the global gaming industry a boost in emerging markets such as Latin America and Africa. emphasized the growing importance of
“The situation we see in these regions is very promising and offers multiple expansion opportunities for companies in the APAC region. EBANX therefore supports these companies in the evolving payments ecology in Latin America and Africa. We have encouraged and empowered them to navigate the complexities of the system.”
said the vice president of products.
Citing Payments and Commerce Market Intelligence (PCMI) data analyzed by EBANX, de Abreu said Brazil, Mexico and Colombia are currently the largest gaming markets in Latin America, with a combined market value of US$6.3 billion. Said it was worth it. 2023. However, gaming growth will be fastest in Peru and Argentina, with growth expected to increase by 39% and 52% annually until 2027, respectively. This acceleration will position gaming as one of the most dynamic and fastest-growing digital sectors in these countries.
Africa is also emerging as a gaming frontier. With young populations and increasing smartphone penetration, countries like South Africa and Egypt are playing pivotal roles in the region’s gaming ecosystem, with a total market value of US$7.1 billion across the Middle East and Africa (MEA). has reached. According to to gaming and esports data provider Newzoo. Africa’s fastest growing gaming markets include Nigeria, with an annual growth rate of 27% by 2027, and South Africa, which is expected to grow 20% annually, according to PCMI.
untapped potential
Although Latin America and the Middle East account for 27% of the world’s gaming population, these regions still lag behind more developed regions such as APAC, Europe, and North America in terms of average spending. According to Newzoo, the average gamer spend is currently US$27 in Latin America and US$13 in MENA, significantly lower than US$50 in Asia Pacific, US$77 in Europe, and US$209 in North America. Nevertheless, Latin America and MENA are driving the global industry growth, expanding by 5.6% and 8.2% in 2024, while North America will grow by 2.9%, Europe by 2.4% and APAC by 4%. There is.
Also important is the fact that emerging markets such as Latin America and the Middle East/Africa are supporting mobile gaming, with most mobile games following a free-to-play model, contributing to lower spending levels. “This means that the potential here is not necessarily in increasing the average amount spent per transaction, but rather in increasing the frequency of purchases through microtransactions, which are already prevalent in mobile-first markets. “I do,” de Abreu said. “This also means expanding our payments portfolio to encompass a variety of payment methods and features,” he concluded. Installment payments are one of them, a card feature that is frequently used in emerging markets such as Latin America, especially for high-value orders.
But it’s essential that the offering goes beyond cards and provides players with a variety of choices. According to , more than 40% of players in Latin America do not own a credit card, so they are adding native methods of mobile experience such as e-wallets and instant payment Pix. new zoo In EBANX’s annual survey, beyond the border. For those under 20, the percentage is even higher, at 77%. Alternative payments such as mobile money, e-wallets and bank transfers are essential to Africa’s gaming industry, accounting for 88% of gaming online sales in Kenya and 71% in Nigeria (PCMI data analyzed by EBANX).
To take full advantage of the opportunities presented by these markets, companies must consider consumers’ unique preferences and payment behaviors and adopt locally tailored strategies.
The leader in localized payment solutions
EBANX is at the forefront of this movement, helping brands like Gravity Game Vision, Ubisoft, Garena, and Sony navigate these emerging markets.
EBANX was founded in Brazil in 2012 and specializes in payment solutions for emerging countries. The company provides merchants globally with access to the most commonly used payment methods in 29 countries in Latin America, Africa and Asia, offering real-time payment schemes, digital We support over 200 local payment methods including wallets and mobile money platforms. This includes locally branded cards and cards with installment plans. Serving more than 300 enterprise customers in industries such as digital gaming, streaming, online retail, digital advertising and social media, travel, and software-as-a-service (SaaS), the company handles 2 million transactions every day worldwide. Processing more than one transaction.
De Abreu highlighted EBANX’s role in helping gaming companies optimize the checkout process for local users.
“By offering both alternative payment methods and traditional card options, we enable businesses to reach a wider audience of gamers, including gamers. 77% of Latin American gamers under the age of 20 do not have a credit card. This strategic approach helps our partners maximize revenue opportunities in these fast-growing regions. ”
Advanced payment solutions for the gaming industry
EBANX’s platform offers a variety of advanced payment solutions for the gaming industry. These include cutting-edge recurring payment solutions that help businesses grow their subscriber base and convert freemium users into premium customers. One of the latest announcements regarding recurring payments in a rising market is Pix AutomáticoThis feature is the most anticipated feature of Pix in the market, especially in the gaming sector.
According to PCMI, in Brazil, 57% of game sales through alternative payment methods are through Pix. EBANX’s internal data shows that the system is used more often by Brazilians to purchase games than credit cards are used for the same purpose across Latin America.
“This demonstrates Pix’s strength in complementing credit cards to secure sales for gaming companies in Latin America.”
Mr. de Abreu pointed out.
EBANX has been preparing global companies for the integration of Pix Automático since last month. Fintech sellers now have access to the technical documentation required to integrate EBANX’s API for this feature. Starting next month, you will also have access to a simulated environment, allowing you to thoroughly test your integration and ensure that Pix Automático is fully prepared for your first day of production.
De Abreu added that EBANX is the market leader in Pix expertise.
“There is no Pix use case that we cannot support, and there is no amount of Pix transactions that we cannot handle.”
he stated. Fintechs have directly participated in the Pix system and processed Pix transactions since Brazil’s central bank first introduced this payment method in 2020. And De Abreu says all of this robust infrastructure applies to Pix Automático.
The launch of Pix Automático is expected to make the gaming experience in Brazil even smoother. However, there is already a card feature that helps businesses ensure a seamless payment experience: automatic card renewal. As de Abreu explains, credit cards remain important and hold a high market share in game sales. Countries like Chile and Ecuador, for example, account for 87% and 86% of all gaming sales, according to PCMI. De Abreu points out that card renewal functionality increases approval rates and minimizes cancellations. Therefore, EBANX offers a seamless payment solution featuring intuitive recipient onboarding and a seamless payment experience.
EBANX recognized the potential of the Latin American and African markets and dedicated a session on gaming at its Bangkok branch. 7th Payment Summit. Following branches in Barcelona, Spain (September 18-20) and Napa Valley, USA (September 30-October 2), the Bangkok event marks EBANX’s largest expansion in the Asia-Pacific (APAC) region. This is the second time we have hosted the Powerful Summit, and this is the first time we have hosted it. It was Sanya, China in 2023. This session explored the important role that Asia-Pacific players play in the global gaming market and their strong interest in expanding their operations in Latin America and Africa.
Gaming giant expands into Latin America and Africa
The growing interest of global gaming companies in Latin America and Africa is highlighted by recent developments in this sector. In April 2023, Fortnite developer Epic Games. obtained Brazilian game developer Aquiris has founded Epic Games Brasil, creating its first studio in Latin America. Similarly, Turtle Beach Corporation, a leading manufacturer of gaming accessories, announced plans to expand its presence in key international markets including Mexico, Colombia, Panama and Chile this October.
Disney in February partnered We have partnered with Nigeria-based game studio Maliyo Games to create a mobile game as an official tie-in to the company’s animated series ‘Iwaju’. In the same month, Electronic Arts, the American video game company that developed The Sims, Battlefield, and Need for Speed, announced that announced A partnership with South African game publisher Carry1st will allow the company to expand its EA SPORTS FC mobile soccer simulation game across the continent.
Featured image credit: Edited from freepic
