Online Gaming in Latin America: Payment trends
In recent years, Latin America has become the fastest-growing market for the online gaming industry. Given its potential for businesses, more and more companies are starting to explore its features and gamers’ needs. So, let’s dive into this together and see how you can win your game in this market.
Current landscape of online gaming in Latin America
Latin America has witnessed phenomenal growth in online gaming of various genres. According to Konvoy, the gaming industry in the region is worth about $2.7 billion and is expected to grow to $4.3 billion in the next four years.
Countries like Brazil, Mexico, and Argentina have become key players in the region. This is significantly influenced by the growing Internet (particularly 5G) and smartphone adoption rate. The cultural diversity and a growing middle class with stable income further fuel the rise of online gaming as a mainstream entertainment option.
Payment habits of LATAM gamers
A report by Visa and Newzoo showed that 82% of people in LATAM and the Caribbean play online games, and 80% of them spend money while playing. About half of this audience belongs to frequent users who make game purchases at least once a month. And while mobile games are more popular, console players tend to spend more due to their higher incomes.
However, this willingness to pay doesn’t guarantee a sale. According to the research, half of the players will cancel a purchase if they encounter problems with payment, such as:
- limited payment options,
- long and complicated checkout process,
- declined payments,
- additional charges.
Given the specific context of making purchases in a game, what matters here is speed, ease of use, and reliability.
What payment methods do gamers need?
While most merchants are primarily considering integrating card methods, a significant portion of the region’s population is still unbanked. So, a lot of players prefer alternative payment options.
Thanks to many years of cooperation with the online gaming industry, we at Payop are well aware of players’ preferences when it comes to payments. In this diverse region, popular methods can be broadly categorised into cash-based (OXXO, Boleto, ServiPag, PagoEfectivo) and digital options (SPEI, PIX, ITAU, MachPay, Webpay, BCP), each catering to the needs of different population segments.
How to boost sales?
The essential feature of in-game purchases is their urgency. Players don’t second-guess their choices and want the payment process to be quick and easy. So, a clear and simple checkout process is more important here than in any other industry.
We can generally highlight five key moments that will help you win more sales:
- possibility to choose a preferred payment method
- price display and payment in local currency, which will allow the player to see the actual cost at once
- minimum number of fields to be filled in during checkout
- no hidden charges
- option to pay with cash
Key takeaways
The online gaming market in Latin America is booming. With mobile internet and gadgets becoming more common every year, this growth promises to continue for years to come. At the same time, a large part of the population continues to lack access to classic banking services. That’s why localisation and diversity of payment methods are a must for anyone who wants to succeed in the region.