Latin America is currently one of the regions with the most significant potential and growth for the gaming market, with a projected revenue of $5.1 billion by 2024.
Among the leading countries in participation in this market are Mexico and Brazil, the latter holding the largest number of mobile game players (88.4 million) and revenue, with more than US$ 1 billion in 2021. Brazil also occupies 13th place in the worldwide ranking, an expressive data that portrays the opportunities this universe can provide to its investors.
Between the various factors responsible for the growth in demand for online gaming in the region, it is possible to highlight the pandemic and its social isolation measures. But, increased smartphone penetration, faster and more robust connection networks with better coverage improved games’ performance and extended their reach.
Learn the secret to explore and grow in this market
The potential of the Brazilian market and the projection of higher revenues in the short and medium-term have attracted the attention of several companies that want to conquer their slice in the gaming universe.
However, to stand out among the ample supply of digital products and increase sales, winning over Brazilian gamers, it is not enough to offer only attractive games or the latest world releases on the domestic market. It is also necessary to provide easy access, familiar to the customer, with clear subscription, contracting, and registration steps.
Gain visibility and strengthen your brand’s presence in the local market
Establishing a close relationship with Brazilian customers includes “speaking their language”. It generates loyalty, referrals, and brand prominence in the national market and specialised media, even attracting recommendations from industry experts, influencers who effectively reach a large audience.
Create a relationship of trust, essential for any company
Besides the items mentioned above, making available local payment methods familiar to the customer and in local currency, such as the Real, is a strategic decision that will make the difference in winning market share. It reflects in constructing a transparent and trustful relationship with the client, who is more inclined to consume when having this security.
Get access to a larger buyer public
One of the singularities of the Brazilian market consists of its financial system. With a wide range of payment methods, it is essential to understand how they work and how people use them.
The most utilised payment method is local credit cards from domestic-only Visa/Mastercard or Brazilian networks Elo/Hyper, specifically for in-country purchases. A short time ago, the second most used method was boleto bancário, an invoice that can be paid digitally or in cash at associated places. However, according to Brazil’s Central Bank, in May 2021, Boleto was overtaken by the new payment method PIX, which allows instant money transfers 24/7. The boleto is still an option for unbanked users. E-wallets are the third most used option, followed by debit cards, which still have some penetration difficulties due to 3D Secure implementation that leads to the poor checkout experience, and bank transfers, which have already lost space to PIX.
These methods create a much broader ecosystem companies should pay attention to, which is essential to reach many Brazilian consumers. In the last few years, there’s been significant growth in digital payments, especially through e-wallets, which reached 33 million users in September 2020 only in one company, and PIX, which is changing the way people pay all over the country.
Working with a broader range of payment methods and with a clear acquisition value without exchange rates expands the possibility of the client (or user) going ahead with the purchase. Mainly because a large part of the consuming public in Brazil belongs to classes C and D who, in many cases, do not have credit cards or only have national credit cards, which could make the purchase unfeasible.
Growth of PIX among gamers
An innovation that has been facilitating transactions in Brazil is PIX, which allows instant money transfer without banking fees for the end-user that is having an outstanding adoption by the Brazilians, overcoming bank transfer and boletos recently. Definitely a payment revolution.
BoaCompra team found in an internal data analysis that among the ten largest companies with the PIX purchase option, it already represents 25 per cent of total sales processing and is the 2nd or 3rd preferred payment method among the end-users that pay through BoaCompra.
Reduced dropout rate
When companies make sales for Brazilians in dollars, the final value varies according to the exchange rate fluctuation on the closing date of the credit card bill. It creates insecurity for consumers since it is impossible to predict the exact amount charged in Reais.
Using well-known local payment methods and offering to display the amount in local currency, the cart abandonment rate at the checkout stage is significantly reduced.
Moreover, when only foreign payment methods are offered, there are some drawbacks: distrust due to distance, difficulty in understanding the system’s language if it is not in Portuguese, for example, and complexity in understanding what is being contracted. By making local payment available, consumers feel closer to the transaction, expressing a more transparent commercial relationship, with more accessible communication and security than the actual amount the consumer is committing to pay.
The value of working with a local partner to accept local payment in Brazil
The direction to take is clean by now. Investing in local payment can boost and strengthen a company’s operations in this highly growing market. That is why a partnership with a localized payment solution allows you to be up to date with the most preferred payment methods Brazilian gamers use to pay their bills and understand their needs right away.
Here at BoaCompra, our extensive coverage of local payment methods in local currency provide financial and technological resilience to companies to start accepting Real. By integrating our one-stop solution, we enable companies for local processing with international funds remittance without the need for a local entity. BoaCompra has over 15 years of experience handling complex cross-border transfers, including conversions, fees, compliance requirements, and offers local customer support 24/7.
Therefore, to get ahead in the promising gaming segment in Latin America and specifically in Brazil, the leading country in the number of consumers in this market, it is essential to be close to these customers. But you don’t need to be physically present in Brazil for that. The most effective way to do this is to offer easy access and varied payment options in local currency, winning new customers and making them loyal by providing transparency and security.
Want to know more about the major role payment methods play in online gaming companies aiming to operate in Latin America? Then download our guide and learn how your online gaming company can accept payments in Latin America: