Latin America (LatAm) is home to a vibrant and expanding gaming community that is seeing rapid growth in both user base and revenue. With 355 million gamers contributing to an expected US$14 billion market in 2024, LatAm is emerging as a major growth region for global gaming companies, presenting considerable opportunities for Asia-Pacific (APAC) firms, according to Eduardo de Abreu, Vice President of Product at EBANX, a leader in localized payment solutions.
De Abreu highlighted these prospects in a recent interview with Fintech News Singapore, emphasizing the growing importance of emerging markets, including LatAm and Africa, for the global gaming industry, fueled by rising smartphone penetration, increasing digital payments and the booming popularity of mobile gaming.
“The landscape we see in these regions is extremely promising and offers multiple expansion windows for companies from the APAC region. That is why EBANX has been encouraging and empowering these businesses to navigate the complexities of the evolving payments ecosystem in LatAm and Africa,”
said the Vice President of Product.
Citing data from Payments and Commerce Market Intelligence (PCMI), analyzed by EBANX, de Abreu said that Brazil, Mexico and Colombia currently stand as the largest gaming markets in the LatAm, worth collectively US$6.3 billion in 2023. However, gaming is growing the fastest in Peru and Argentina, where it is projected to rise by 39% and 52% annually through 2027, respectively. This acceleration would position gaming as one of the most dynamic and fastest-growing digital verticals in these countries.
Africa is also emerging as a gaming frontier. With a young population and increasing smartphone adoption, countries like South Africa and Egypt are becoming pivotal in the region’s gaming ecosystem, contributing to a combined market value of US$7.1 billion across the Middle East and Africa (MEA), according to games and esports data provider Newzoo. Africa’s fastest-growing gaming markets include Nigeria, with an annual growth rate of 27% by 2027, and South Africa, which is expected to grow at 20% annually, per PCMI.
Untapped potential
While LatAm and MEA account for a substantial 27% of the global gaming population, these regions still trail behind more developed regions such as APAC, Europe and North America in terms of average spending. According to Newzoo, average spending by gamers currently stands at US$27 in LatAm and US$13 in MENA, significantly lower than the US$50 spent in APAC, US$77 in Europe and US$209 in North America. Nevertheless, LatAm and MENA are leading the industry’s growth worldwide, expanding 5.6% and 8.2% in 2024, while North America was at 2.9%, Europe at 2.4%, and APAC at 4%.
Also important is the fact that emerging markets like LatAm and MEA favor mobile gaming, contributing to lower spending levels as most mobile games follow a free-to-play model. “This means that the potential here lies not necessarily in increasing the average spend per transaction, but rather in boosting the frequency of purchases through microtransactions, which are already popular in mobile-first markets,” de Abreu said. “It also means widening the payments portfolio to encompass diverse payment methods and features,” he completed. Installments is one of those cases – a card feature heavily used across emerging markets like LatAm, especially for higher-value orders.
But it’s imperative that the offering also goes beyond cards, creating a diverse option for players. Native methods for the mobile experience, like e-wallets and the instant payment Pix, are being added since more than 40% of Latin American players don’t own a credit card, per Newzoo in EBANX annual study, Beyond Borders. Among those under 20, the percentage is even higher: 77%. Alternative payments like mobile money, e-wallets, and bank transfers are imperative in Africa’s gaming landscape, representing 88% of gaming online sales in Kenya and 71% in Nigeria (PCMI data analyzed by EBANX).
To fully capitalize on the opportunities these markets present, businesses must consider these unique consumer preferences and payment behaviors, and adopt localized strategies.
A leader in localized payment solutions
EBANX is at the forefront of this movement, helping brands such as Gravity Game Vision, Ubisoft, Garena, and Sony navigate these emerging markets.
Founded in 2012 in Brazil, EBANX specializes in payment solutions for emerging economies. The company offers global merchants access to the most commonly used payment methods in 29 countries across Latin America, Africa and Asia, supporting over 200 local payment methods, including real-time payment schemes, digital wallets and mobile money platforms, besides traditional debit and credit cards, including from local brands and with installment plans. It serves more than 300 enterprise customers from verticals such as digital gaming, streaming, online retail, digital ads and social media, travel and software-as-a-service (SaaS), and processes over 2 million transactions globally every day.
De Abreu highlighted EBANX’s role in empowering gaming companies to optimize their checkout processes for local users:
“By offering both alternative payment methods and traditional card options, we ensure that companies can reach a wide range of gamers, including the 77% of Latin American gamers under 20 who lack credit cards. This strategic approach helps our partners maximize revenue opportunities in these fast-growing regions.”
Advanced payment solutions for the gaming industry
EBANX’s platform offers a variety of advanced payment solutions for the gaming industry. These include a state-of-the-art recurring payments solution that helps companies grow their subscriber base or convert freemium users into premium customers. One of the latest announcements in recurring payments for rising markets is Pix Automático, set to be launched by the Central Bank of Brazil in June 2025. This capability is Pix’s most anticipated feature within the market, especially in the gaming sector.
In Brazil, 57% of gaming sales made through alternative payment methods are via Pix, according to PCMI. Internal data from EBANX also shows that the system is utilized more frequently for game purchases by Brazilians than credit cards are used for the same purpose across all of LatAm.
“This demonstrates the strength of Pix, which complements credit cards to ensure sales for gaming companies in LatAm,”
pointed out de Abreu.
Since last month, EBANX has been preparing global companies for the integration of Pix Automático. Merchants of the fintech can now access the technical documentation required to integrate EBANX’s API for this feature. Starting next month, they will also have access to a simulated environment, enabling them to thoroughly test their integrations and ensure they are fully prepared for the first day of Pix Automático’s operation.
De Abreu added that EBANX is the market leader in Pix expertise:
“There is no use case for Pix that we cannot support, and there is no volume of Pix transactions that we cannot handle.”
he stated. The fintech has been a direct participant in the Pix system and processing Pix transactions since Brazil’s Central Bank first launched the payment method in 2020. And, according to de Abreu, all this robust infrastructure will be applied to Pix Automático.
The launch of Pix Automático is expected to make the gaming experience in Brazil even smoother. But there is already a card feature that has been helping companies ensure a seamless payment experience: automatic card updates. As de Abreu explains, credit cards remain relevant, holding high market shares in gaming sales. In countries like Chile and Ecuador, for example, they account for 87% and 86% of all gaming sales, according to PCMI. De Abreu points out that the feature for card updates boosts approval rates and minimizes churn. Therefore, EBANX provides a seamless payout solution featuring an intuitive payee onboarding and a seamless payout experience.
Recognizing the potential of the LatAm and African markets, EBANX has dedicated a session to gaming at the Bangkok chapter of its 7th Payments Summit. Following chapters in Barcelona, Spain (September 18-20) and Napa Valley, U.S. (September 30-October 2), the Bangkok stop marked the second time EBANX hosted this influential summit in the Asia-Pacific (APAC) region – the first time was in 2023, in Sanya, China. The session explored the significant role that APAC players have in the global gaming market and their keen interest in expanding operations in LatAm and Africa.
Gaming giants expand to LatAm and Africa
Growing interest in LatAm and Africa from global gaming companies is highlighted by recent developments in the sector. In April 2023, Epic Games, the creator of Fortnite, acquired Brazilian game developer Aquiris and established Epic Games Brasil, marking its first studio in LatAm. Similarly, Turtle Beach Corporation, a leading maker of gaming accessories, announced in October this year plans to expand its presence in key international markets, including Mexico, Colombia, Panama, and Chile.
Disney in February partnered with Nigeria-based game studio Maliyo Games to create a mobile game as an official tie-in for its animated series Iwaju. That same month, Electronic Arts, the American video game company behind the Sims, Battlefield and Need for Speed, announced a partnership with South African game publisher Carry1st to help scale its EA SPORTS FC mobile football simulation game across the continent.
Featured image credit: edited from freepik
