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Exploring the Payment Preferences & Trends in LATAM’s Thriving Gaming Market
26.06.2023
5 min
The gaming industry has experienced explosive growth worldwide, captivating audiences of all ages and backgrounds, with the Latin American region being one of the most prominent examples. In this article, we delve into the peculiarities of this flourishing market and shed light on the payment preferences and habits of its gaming enthusiasts.
By examining the evolving landscape of payment methods, the emergence of local trends, and the impact of cultural influences, we aim to provide a comprehensive exploration of the unique payment ecosystem within LATAM’s gaming industry and the lessons it provides to other countries and industries. Keep reading for all the insights!
An Overview of the Gaming Industry in Latin America
The online gaming industry in Latin America is characterized by the following figures:
- Sales exceeding $8 billion
- A user base of more than 316 million people
- 200 million active paying consumers
- A steady 5% YoY growth in the number of players
In 2021, smartphones were the preferred choice for Latin American gamers, making up 73% of their gaming devices. PC gaming followed closely at 63%, while consoles accounted for 60% of the total number of players. According to industry experts, the same tendency is expected to continue in the coming years.
Moreover, mobile gaming accounted for 48% of the region’s game revenue, which amounted to $1.91 billion. Therefore, the mobile-first approach is an undeniable trend gaming trend in LATAM that should not be disregarded.
Insights Into Game-Related Spending Habits in LATAM
From casual mobile arcades to immersive narratives and sandbox experiences, games appeal to an increasingly varied audience. Thus, while the average Latin American gamer is typically a male over 30 years old from the middle class or above, this profile is continuously evolving. The share of women in gaming is increasing fast, with females already accounting for 44% of players in LATAM.
The average gaming spending per week is closely tied to socioeconomic status, with higher-class individuals investing two to four times more than their lower-class counterparts.
Notably, mobile gaming serves as an entry point for many gamers across the region, including those from lower-class backgrounds, as mobile devices are more accessible than PCs or consoles capable of running the latest games.
At the same time, there has been an ongoing trend of increased spending among mobile gamers in recent years, with the following monthly averages being reported in the LATAM region:
- $22.1 in 2019
- $26.1 in 2020
- $27.3 in 2021
This tendency also reflects the bigger trend of an increasing number of Latin American players willing to pay for gaming. According to statistical data, the share of gamers who wish to pay to play has grown from 43% in 2010 to 47% in 2021, accounting for nearly half of the local gaming community.
Yet, although mobile gaming attracts a larger player base, console gamers tend to have higher average spending as they often belong to higher socioeconomic classes and invest more in game titles.
When examining the gender distribution by device in Latin America’s top six markets, it becomes evident that 66% of LATAM gamers have made a game-related purchase within the past six months. This engaged audience includes 50% of “frequent purchasers” who make gaming purchases at least once a month.
All these factors, such as average spending, the platform used for purchases, and the gaming environment, influence the payment preferences of gamers. Therefore, it is crucial for merchants in the industry to delve deeper into the available data and understand the subtle intricacies of the local purchasing experience to better cater to their LATAM customers.
What Kind of Payment Experience Are LATAM Gamers Looking for?
For 25% to 34% of Latin American gamers, depending on the country, prompt confirmation of payments is the main decisive factor for completing the checkout. Other key considerations are as follows:
- The ability to select one’s preferred payment method
- A smooth and user-friendly shopping experience
- Installment payment options
- Being allowed to use multiple payment options for one transaction
- The option to pay cash
Surprisingly, only 13% of gamers in Brazil consider Pix as their preferred payment method for gaming purchases, indicating that most local merchants within the industry have yet to offer it to their customers in this country.
However, gaming merchants who have adopted this payment method have seen extremely positive results, with Pix accounting for over 50% of their total payment volume.
Key Factors Causing Cart Abandonment Among LATAM Gamers
39% of LATAM gamers across the region’s top six markets, including Brazil, Mexico, Colombia, Argentina, Chile, and Peru, cite the inability to use their preferred payment method as the primary reason for abandoning a purchase during the checkout process.
Other cart abandonment reasons include:
- The absence of promotions or discounts
- The need to conduct payments in a foreign currency
- The unavailability of installment payment options
Thus, as you can see, tapping into Latin America’s engaged and digitized gaming market is hardly possible without offering multiple payment options and a seamless shopping experience.
Summing Up: Making the Most out of the Lessons Learnt from LATAM’s Example
The global online gaming industry thrives on innovation, driven by a passionate consumer base that embraces technology. Yet, aside from looking for top-notch graphics and exciting gameplay, most players also have high expectations for other game-related experiences, including discovering new games, accessing expansions, purchasing virtual items, and acquiring power-ups and enhancements.
While all of this is true for Latin America, merchants must remember that it is a diverse region with distinctive payment habits and preferences. Here are some essential factors to keep in mind:
- Payment methods. While credit and debit cards are commonly used in LATAM, such alternative payment methods as local digital wallets, bank transfers, and prepaid cards are also popular. Thus, offering a wide range of payment options can attract more players and increase conversion rates.
- Local currencies. Latin America consists of multiple countries with their own currencies. Supporting local currencies in payment transactions can simplify the purchasing process for players and reduce potential barriers to entry.
- Localization and language. LATAM is linguistically diverse, with Spanish, Portuguese, and other languages spoken across the region. Providing payment instructions, checkout pages, and customer support in local languages can help reduce cart abandonment and drive conversions.
- Regional promotions and events. Understanding the cultural nuances and preferences of Latin American gamers can help merchants tailor promotional campaigns. Offering localized discounts, special events, or exclusive in-game items can engage players and build loyalty.
What’s more, given the fact that LATAM’s gaming market is among those at the forefront of innovation, the lessons gained from it can also be applied to other countries and industries.
By considering payment method diversity, localization, currency support, regional promotions, and user experience optimization, merchants across the globe can effectively cater to the consumers’ needs and preferences, which ultimately leads to higher conversions and improved satisfaction rates.