In one of the most benefited sectors, Asian gaming companies are raising the order value from Brazilian customers
CURITIBA, Brazil, Dec. 20, 2024 /PRNewswire/ -- In Brazil, global companies offering installments as a payment solution experience an average weekly revenue growth of 40%, as revealed by internal data from EBANX, a global technology platform specializing in payment services for rising markets. This trend is particularly pronounced in the gaming sector, where the Average Order Value (AOV) with installments increases by 98% compared to single-payment transactions.
Eduardo de Abreu, Vice President of Product at EBANX, at EBANX Payments Summit in Bangkok
Eduardo de Abreu, Vice President of Product at EBANX, explained that installments are a cultural phenomenon in Brazil, rooted in the country's history of high inflation in the 1980s and early 1990s. "Over time, installments have become deeply ingrained in Brazilian and all Latin American cultures, providing consumers with a convenient and accessible way to make purchases, especially for higher-ticket values," de Abreu added.
Latin America has emerged as the next frontier for the international expansion of gaming companies. The industry revenue in the region is projected to grow by 6.2% in 2024, surpassing Asia-Pacific's growth rate of 1.5% and North America's 0.6%, according to market research firm Newzoo. The latest data from EBANX on installments outlines a strategy for international companies to access Latin America's growing gaming market.
Offering installment payments has already proven to be a key growth strategy for Asian merchants in Brazil. For instance, after introducing this payment solution, a Chinese gaming platform processing transactions through EBANX saw a 169% increase in AOV over the course of one year. Based in Japan, another gaming company experienced a 14% weekly revenue boost after adding installments as an option for customers.
"This merchant was even able to reconnect with its clients because of this feature," said de Abreu. After the Japanese company began offering installments, 30% of Brazilian customers who hadn't purchased in one month returned to make higher-value payments. Today, nearly half of this merchant's transaction volume in Brazil is driven by installments.
The VP of Product pointed out that "understanding how customers behave in different markets is essential to unlocking greater opportunities." De Abreu explained that by providing tailored solutions with traditional and alternative payment methods for Latin American gamers, Asian companies can navigate the region's unique market dynamics, ensuring seamless transactions and boosting user engagement.
ABOUT EBANX
EBANX is the leading payment platform connecting global companies with customers from the fastest-growing digital markets in the world. The company was founded in 2012 in Brazil with the mission of giving people access to buy in international digital commerce. With powerful proprietary technology and infrastructure, combined with in-depth knowledge of the markets where it operates, EBANX enables global businesses to connect with hundreds of payment methods in different countries in Latin America, Africa, and Asia. EBANX goes beyond payments, increasing sales, and fostering seamless purchase experiences for businesses and clients.
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