How paytech helps the gaming world tap the under-banked populations
With the gaming industry set to reach $152.1 billion this year, according to a Newzoo gaming report, and the global payments revenue swelling to a $2 trillion business by 2020, as reported by McKinsey, it’s no wonder that the two worlds colliding will create fresh opportunities for growth in an ever changing financial services market.
Vienna-based paysafecard, part of the billion dollar Paysafe Group, and Berlin-based esports organisation G2 Esports tell FinTech Futures how their four-year evolving partnership is helping the gaming world tap the under-banked populations.
Confident more paytech-gaming partnerships will begin to form, G2 Esport’s COO, Peter Mucha, says his company actively wants to help position brands like paysafecard “as credible payment solutions for gamers”.
“Gamers, like most consumers, are increasingly using new digital payment methods to unlock greater convenience, more payment options and faster payouts,” says Mucha. “By tapping into paytech, gamers around the world are able to access gaming experiences without having to use a bank account or credit card.”
Mucha says this eliminates a big entry barrier for gamers as it allows G2 Esports to extend its reach to the underbanked and underserved populations around the world.
The COO is also confident that as we see increased internet access in emerging markets, there will be a shift in the financial industry to builds payment solutions which fit the paying habits and preferences of gamers globally.
“We will continue to see the financial and gaming industries come together […] so that gamers can buy in-game products, exclusive content and other value-add items [for] their game play.”
The Chinese games market alone is set to reach $35 billion in 2021 according to Niko, an Asian games market intelligence analyst.
As for the world as a whole, there are now more than 2.5 billion gamers globally which games and esports analytics firm Newzoo predicts will spend $152.1 billion combined on games this year, representing an increase of +9.6% year on year.
Paysafecard’s European Economic Area (EEA) CEO and prepaid services director Konstantinos Maragkakis believes paytech and gaming collaborations will help contribute to the professionalism of an industry often overlooked by the established financial world.
By making the industry more financially accessible, both partners envision gaming becoming one of the biggest sources of online entertainment.
The average paysafecard transfer, which is not yet segmented by industry, was €23.37 (US $30.29) in 2018. The company hints that esports is “a key part” of its growth strategy and has “a strong focus on partnerships in this area”, but says it can’t share any details on future partnerships at this point.
Maragkakis believes the only way traditional financial institutions can tap into this huge, multi-billion dollar market is by putting themselves in the minds of the gamers and understanding the serious spending power this industry holds.
“It’s not a handful of kids spending their days playing video games in the basement anymore; today gaming is so much more than just an activity but rather a lifestyle choice for many young – and older – adults.”