The gaming industry in Latin America is expanding at a very fast pace. But how do users pay in the segment? And what does that mean for your business?
The evolution of online gaming is a reflection of the technological advances that are being leveraged in the region and the greater interest that players are developing in this type of entertainment.
In any case, entering this market is not an easy task. Latin Americans have their own habits and culture, as well as their own economic, regulatory, and political systems, which can make some operations difficult in some countries in the region.
For that reason, before starting operations in such countries, it is necessary to know the profile of their players and what are their preferred means of payment. Keep reading to learn more about the topic.
What’s the gaming industry like in Latin America?
Latin America is one of the fastest growing regions in terms of consumption of digital games in the world. To give you an idea, this market grew more than 30% in 2020, and it is estimated that USD $8.9 billion was generated in 2021.
This is due to the large contingent of players, which exceeded the range of 289 million active people, associated with the emergence of favorable technologies for this purpose, such as smartphones and cloud computing.
In addition, there is an expectation that the gaming industry in Latin America will grow even more in the coming years with the implementation of 5G technology — ensuring faster connections and, consequently, a better gaming experience for users.
What are their most popular payment methods?
According to the Digital Renaissance in Latin America white paper, published by PagSeguro in partnership with AMI, the most used payment methods in Latin America vary greatly from country to country. Players typically prefer local payment methods, from domestic-only credit cards to instant payments and e-wallets. Therefore, it is recommended to offer personalized means of payment.
Check out the most popular ones below, which cannot be left out of your Latam strategy:
As a payment method that has become popular in recent years due to its practicality when shopping in virtual and physical stores, digital wallets, which allow you to carry out payment transactions in a very practical way — through tap to pay, for example — is one of the methods most used by Latin American players, with 11% of the total e-commerce share.
It is expected that, by 2025, they will grow to represent around 23% of the payment methods most used by consumers in the region. This payment method contributes a lot so that online game consumers can focus on what really matters — which is having fun playing.
Some of the most used digital wallets in Latin America include PagBank, Mercado Pago, PayPal, and MACH Pay.
The possibility of making payments instantly without the need for a credit or debit card is what makes this payment method very different. Being able to purchase an item from the in-game store without having to wait a few hours to have the transaction properly processed is certainly a pain point players want to avoid.
Therefore, this payment method is widely used: instant payments are the vast majority of bank transfer payments, which currently represent 13% of online payments, and are expected to grow by approximately 40% by 2025 — which means the second most used payment method among consumers.
Some of the instant payment methods adopted in Latin American countries are Pix (Brazil) and PSE (Colombia).
The Brazilian instant payment deserves a highlight of its own — after all, it is the fastest rising method in the country. With it, it is possible to make payments and transfers in a quick, secure, and very easy way.
In approximately a year after its launch, Pix had already surpassed all other payment methods carried out in the country, adding a total of USD $356 billion in transfers. According to the study mentioned above, this payment method is expected to reach 31% of all e-commerce purchases in Brazil by 2025; today, it represents 15%.
For Brazilian gamers, Pix makes in-game purchases easier, especially through smartphones, where most transactions are made.
Other payment methods used in Latin America include: vouchers (bank slip in Brazil and Oxxo in Mexico, for example), national credit card, international credit card, debit card, prepaid cards, among others.
As it has been already mentioned in this post, Latin America is a region in which players use very diverse means of payment. Consequently, adopting only one method won’t be enough.
Which Latin countries have the highest paying players?
The gaming industry in Latin America is full of players who will go to great lengths to have a great user experience. Hence, players spend resources so that they can have the best fun possible.
Considering Latin America and Caribbean countries, around 146 million gamers spent money on games in 2021. This includes users of consoles, PCs, smartphones and cloud computing based games.
The countries that stand out in terms of the number of payers are: Brazil (53.3 million), Mexico (45.3 million) and Colombia (13.3 million). It is interesting to point out that most of these paying users played on mobile devices — a characteristic of the region, since developing for this type of device is less expensive and offers good opportunities for new developers.
What influences in-game payments for users?
One of the main reasons Latin American gamers spend money on electronic games has to do with the role that social media and content production have played in recent years. That is, the consumption of content related to gaming influences the purchase decision.
In this way, betting on a more personalized user experience can boost player spending. Despite this, what has drawn even more attention in relation to how much players can spend on their games is the possibility of playing with friends in a customized way.
Another important factor is to offer local support channels so that any payment mishaps, for example, can be resolved as quickly as possible — which can lead the player to stay in the game longer and spend even more.
In any case, understanding the challenges imposed by the gaming industry in Latin America is essential. To make this happen as easily as possible, it is good to have a partner brand that can ease your company's operations in this new world through integrated payment methods and by offering detailed knowledge about the businesses practiced in the region.
PagSeguro, for example, offers a fully mobile-responsive online checkout, 24/7 customer service in four different languages, and over 140 local payment methods. Learn more about the trends, challenges and potential that the gaming industry has to offer in Brazil and how to grow your business with our exclusive guide.
And click below to talk to us and start offering right now the payment experience your online gaming users expect in Latin America: