Instalment Payments Boost Revenue and AOV for Gaming in Brazil

Brazil’s gaming industry has recently experienced a significant shift, with global companies embracing installment payment options, leading to impressive revenue growth. According to a study conducted by EBANX, companies offering installment plans in Brazil have seen an average weekly revenue increase of 40%. This rise can be particularly seen in the gaming sector, where the Average Order Value (AOV) with installments is a staggering 98% higher than that of single-payment transactions. Eduardo de Abreu, Vice President of Product at EBANX, attributes this trend to Brazil’s historical context of high inflation during the 1980s and early 1990s, which normalized the use of installment payments for many consumers. This cultural predisposition has now translated into a favorable business strategy for companies aiming to engage with Brazilian gamers.

Impact on the Gaming Industry

The rise of installment payments has led to remarkable transformations within the gaming industry in Latin America. This region has become crucial for international gaming companies, which are witnessing rapid growth surpassing other global markets. Latin America’s gaming industry is projected to grow by 6.2% in 2024, signaling even more opportunities for businesses ready to adapt to regional payment preferences. For instance, one gaming platform utilizing EBANX’s installment payment solutions reported a 169% increase in AOV within a year of implementation. Another gaming company observed a 14% surge in weekly revenue, underscoring the efficiency of installments in boosting financial outcomes.

Eduardo de Abreu stresses the importance of understanding regional consumer behaviors and tailoring payment solutions to match these preferences. By offering installment payment options, companies can better align with the financial habits of Brazilian consumers, enhancing overall engagement. This strategy not only draws new customers but also reconnects with previously lapsed users, expanding the customer base and increasing transaction volumes. The success witnessed by these gaming companies underscores the potential for further growth and revenue maximization through localized payment strategies.

The Future of Instalments in Gaming

As the trend shifts toward more personalized and flexible payment options, adopting installment plans seems to be a sustainable strategy for the gaming industry. De Abreu’s insights emphasize how these payment solutions can strengthen consumer connections and enhance transaction efficiency. By understanding and integrating regional payment habits, gaming companies can craft seamless transaction experiences, leading to increased user satisfaction and loyalty.

The growing popularity of installment payments reflects a broader shift in consumer financial behavior, especially in markets historically impacted by economic fluctuations. Observing Brazil’s success, other regions are likely to adopt the installment payment model widely. This method won’t just benefit the gaming industry—it can also drive growth in other sectors in emerging markets. To stay competitive, companies must be agile, continually reassessing and adapting to changing payment dynamics while using data-driven insights to refine strategies. By doing so, they can harness the potential of installment payments, ensuring a prosperous future in the fast-evolving gaming landscape.

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