Processing payments locally can increase your approval rates by 13% in a market worth USD 1.4 billion
The video gaming industry in Mexico is unstoppable: revenue of USD1.4 billion in 2019 and forecasted growth of 10% in 2020. Not even the economic deceleration that begun at the end of 2018 seems to shake this market. Is your business ready for the opportunity?
Such massive potential is explained mainly by the ever-growing number of people online. According to the Mexican Institute of Statistics and Geography (Inegi), more than 80 million Mexicans had access to the internet, meaning 70% of the country’s population. Another possible reason is the Covid-19 pandemic, which has kept millions of people at home due to social distancing measures taken by the local government.
In any case, to tap into that market, it is essential to know the shopping habits of local gamers and make sure your online store can deliver a prime user experience. A recent study from the Mexican Association of Online Sales (Amvo) shows that 91% of interviewed gamers use their mobile phones to play. “Having a bullet-proof mobile checkout is decisive to your success. Is it frictionless? And, more important, does it offer the payment methods your client prefers and trusts? The answer to these questions can make or break your online store”, says Rocío Pérez, Head of Latin America at PrimeiroPay.
One critical example is fraud. With the online gaming boom comes the rising of sophisticated attacks by fraudsters. “That is why having strong expertise in local markets is so important. Understanding these particular nuances can not only increase your sales but protect your business from preventable loss”, explains Rocío.
Local processing vs. International Payment Service providers for video gaming comings
Data from the PrimeiroPay platform shows a 13% increase in approval rates for video gaming companies that changed from international PSPs to processing their clients’ payments locally. By going local, businesses can offer local payment methods and unlock the possibility for their clients to use their local debit and credit cards, and alternative payment methods (such as Oxxo).
The good news is that you can get closer to new customers without the need for a local entity. With PrimeiroPay, your company sells in local currencies and accept local cards and payment methods like Oxxo, in Mexico. We also defend your online business with automatic fraud checks. Next, you get paid in your currency of choice with neutral tariffs and optimised taxes. All that with transparency FX and compliant to banking regulations.
Gaming behaviour in Mexico
Are you a merchant looking to expand your video gaming business in Mexico? Great! We are the right partner.