Did you know Brazil has the largest gaming market in Latin America and ranks 13th worldwide? Further, this industry transactions BRL 5.6 billion annually in the country, according to research carried out by Newzoo.
With nearly 75.7 million players, 83% have already purchased an online item in the six months previous to the study. And this astonishing market is forecast to grow by 5.3% by 2022, according to PwC. The research also shows that smartphone games alone are forecast to reach USD 878 million in the next two years. Casual gaming and microtransactions – which consist of purchasing virtual coins, items, and more – are the top elements that will help drive these results.
These facts and figures speak for themselves: Brazil, as Latins America’s largest e-commerce market, is also an outstanding opportunity for the gaming industry.
A look into the Brazilian gamer profile
Smartphones are the leading devices gamers use to play in Brazil, accounting for 83% according to the Pesquisa Game Brasil 2019. Video game console represent 48.5%, and up next are laptops (42.6%), desktop (42.4%), and tablet (19.6%).
The same research also found that women represent 53% of internet users in Brazil who play games, who are mainly casual smartphone players.
In addition, players ages 25 to 34 represent 37.7% of internet users who play games, followed by users ages 35 to 54 (34.7%), 16 to 24 (19.9%), and over 54 years old (7%).
And playing games aren’t the only activities users in Brazil are conducting. Smartphones are the most used devices gamers use for listening to music, watching movies and TV series, and reading. In addition, 61% also use their smartphones to search for products and services and 58.9% to purchase on online stores.
Payment methods distribution
Although the gaming industry is a profitable and fast-growing market in Brazil, limited payment options often hold back gamers from purchasing in-game items. This because access to credit cards is low in the country, and many of the cards issued are limited to local transactions only, meaning many gamers are unable to purchase from abroad. In addition, those who do own an international credit card often don’t want to compromise their limits or pay for currency exchange rates and IOF.
This makes payment methods such as the boleto bancário an interesting alternative for these gamers. In fact, data from Statista found that this option accounts for 13% of payment methods distribution, while debit cards represent 10%. Other payment methods – such as pre-paid cards, for instance – account for 24% of the distribution.
How can gaming companies increase microtransaction conversion rates?
Microtransactions have shown a significant impact in the gaming industry worldwide, and in Brazil, it is no different.
In 2018, Brazilians spent USD 310 million with in-game items sold on PC games, and USD 89 million on console games. By 2022, this number should reach USD 491 million and USD 107 million, respectively.
But how can the gaming industry benefit even further from this scenario?
1. By offering inclusive payment methods
Cash reliance is high in Brazil: 71% of Brazilians have revealed they favor cash for their daily expenses. Further, there are 45 million unbanked adults in the country. This means offering methods that enable cash payments is essential for driving conversion rates in the country.
Offering this alternative is also fundamental for the teen public, who represent an important potential customer as they are more assiduous players. Many do not own a credit card and avoid asking their parents to lend them their cards for in-game purchases.
Innovation in the market, PagBrasil’s PEC Flash® has been specially developed for cash payments for online purchases. By selecting this option, customers may complete the purchase online and pay in any one of the 13,000 lottery agencies in Brazil, with the confirmation occurring within instants.
2. By offering accelerated payment confirmation
There is no consumer that is more driven by impulse than the online gamer. At the heat of the moment, players are keener to purchasing in-game items.
However, when choosing payment options such as the boleto bancário, consumers are well aware that the payment confirmation may take 1-3 business days, so many give up on purchasing. Alternatives with quick payment validation, such as Boleto Flash®, which confirms payments in less than one hour, are options that players continuously seek for.
This is why offering alternative payment methods with accelerated confirmation, such as Boleto Flash® and PEC Flash®, are so important for gaming companies. This way, consumers that do not own or do not want to use their credit cards may enjoy their new item within instants after purchasing.
3. Offering mobile-responsive payment methods
The mobile experience is much valued by gamers, and not only in their online matches. Many players complete their payments for digital purchases with their smartphones, and an optimized and fluid experience is essential for increasing conversion.
This is why PagBrasil’s main payment methods are mobile-responsive. This includes Boleto Flash®, as it not only adapts itself in every screen, but it also allows users to copy and past the bar code, easing the payments.
4. By enabling second conversion opportunities
Sending e-mail reminders for gamers to complete their purchases is an effective way to encourage second conversion opportunities. This may be done by sending players a Payment Link with multiple payment options. This solution is also ideal for retaining loyal customers, as it enabled generating a pre-filled Payment Link with previously saved customer information.
With Boleto Flash®, it is also possible to recover cart abandonment: not only does the solution provide payment reminders it also enables adjustable expiration dates, allowing merchants to send and updated payment notifications without the customer having to generate a new boleto.
With a highly connective and digital population, the gaming industry in Brazil is well developed and continues to grow by the year. However, local payment methods are important drivers for converting players into loyal customers.
Want to learn more about Boleto Flash® and PEC Flash®? Get in touch!