PagSeguro, a fintech company specialized in allowing worldwide companies to accept local payment methods and local currencies from 17 Latin American countries and 4 in Europe, connecting more than 300 international companies to local payment methods, announces the launch of our newest white paper: The payment habits of Latin American gamers: Leveraging payment method strategy to unlock Latam’s gaming industry white paper.
Produced in partnership with Payments and Commerce Market Intelligence (PCMI), the study showcases the behavior of gamers in Latin America and their payment habits, based on a survey with paying players from the region’s six main markets: Brazil, Mexico, Colombia, Argentina, Chile, and Peru.
Latin America is one of the regions with the highest growth in the gaming industry in recent years. Meanwhile, the average ticket spent per year by gamers in the region (US$ 27) is still much lower than that registered in Europe (US$ 77) and North America (US$ 209), which demonstrates the market’s potential for growth.
With that in mind, the white paper presents a complete view of who the players in this region are and how they prefer to buy games and make purchases related to this universe. According to PagSeguro’s Business Executive Director Adriana Garbim, the study aims to help businesses in the online gaming segment better reach Latin America and provide subsidies on the preferences of this audience, helping them elaborate about strategies and make more effective decisions.
“The launch of this whitepaper reinforces PagSeguro's payment leadership in Latin America’s online gaming segment. The international front of the PagSeguro Digital venture emerged precisely to address the pains of the online gaming industry in reaching the Latin American market – and even today, almost two decades later, we remain the main provider of local payment solutions for the segment, offering users' preferred local currencies and payment methods and ensuring transaction security. With the study, we hope to bring valuable insights and data to the sector”, says the executive.
Profile of gamers in Latin America and their preferred devices
The survey was carried out with over 2,200 thousand active gamers who made at least one purchase related to the gaming universe in the last year. Based on the responses, the profile of gamers in Latin America is mostly male, over 30 years old, belonging to the middle and upper socioeconomic classes. However, the white paper points out that this profile is changing, with the player base becoming increasingly diverse: children and teenagers already represent a crucial part of the industry, while women are catching up to male participation in the segment, representing 44% of gamers in the region.
Among formats and platforms, 81% of gamers in Latin America play on mobile devices, while PC gaming and consoles reach 61% and 57% penetration, respectively. According to the study, most players use more than one device, which shows the need for integration between formats and flexibility in purchases and payments between different devices.
Most of the transactions carried out by gamers refer to the purchases of the games themselves (63%), but there is a growing market for in-game purchases, such as customized items, gaming currencies, and expansions. The white paper points out that 50% of respondents made in-game purchases in the last year.
Payment methods and habits
The The payment habits of Latin American gamers study indicates that the variety of payment methods is essential for a successful shopping experience. Each country has its preferences when it comes to the method of transaction, which includes credit and debit cards, digital wallets, bank transfers, and cash-based vouchers. In addition, the platform used to play and the average ticket, among other factors, also impact how gamers prefer to make payments.
Brazil and Argentina were the only countries consulted for the survey in which most respondents chose credit cards as their main payment method. In other countries, debit cards appeared as the preferred option. Gamers in Latin America have demonstrated a growing demand for instant payment methods, with 30-40% of consumers choosing 'speed' as the main decision factor regarding why they will choose a payment method over another at the time of purchase.
In this sense, the study highlights the penetration of Pix in Brazil and the impact of the instant payment method introduced by the country’s Central Bank, which led to higher conversion rates and lower costs. However, Pix's acceptance is still limited in the gaming market.
According to the survey, only 13% of respondents chose Pix as their main payment method when paying for gaming-related purchases, which shows great growth potential in Brazil for platforms that do not yet accept Pix.
The complete study also brings data and insights on the average amount spent by gamers in each country, how purchases in installments influence the consumption of products and services in this universe, how often gamers make purchases and how this connects with the average time spent in games, in addition to other trends in the means of payments in games.
To download the full study for free, just click below!