It’s quarantine, and Sam is busy playing Among Us with his friends. As he progressed through levels, Sam wanted to upgrade his avatar to match his friends. That’s when he came across the in-app buy button. As he had linked his cards to Google, Sam immediately purchased the avatar and continued his gaming journey.
Now you might be wondering, why is gaming featured in a fintech newsletter? Well, here is our unique angle to it:
GameTech is a fresh vertical that combines financial technology and the gaming industry into one.
With the onset of the pandemic, Gamification has integrated itself with our lives. Paradoxically, this lockdown also saw increased connections with the family through heritage games like Ludo. However, many had also turned to mobile gaming as part of their lockdown activities.
While most online games offer in-app purchases that enhance a player’s gaming experience, like upgrade their avatar or unlocking bonus features that help them advance in the game. This means that thousands of gamers are now opening their digital wallets to take advantage of the slashed prices and limited offers that are often irresistible to pass up.
This is why online gaming is now a part of the fintech ecosystem.
According to Newzoo, the games market will account for $174.9 billion by the end of this year. This figure is a $15.6 billion increase from a forecast done in the beginning stages of COVID.
On a global scale, online gaming was once dependent on credit cards and ATMs for purchases. But since then, the gaming industry had rolled out a robust payment structure to streamline gamers’ transactions.
India’s gaming market is projected to be $1 billion by 2021, a significant increase from $260 million in 2016. Indian gamers view it as a competing platform to bond with their friends. This mindset has run deep in India’s Tier 2 and Tier 3 cities, where the adoption of apps and in-app purchases is the highest. A result of this consumer behavior has led to revenue generated from customizable avatars and virtual coin packs arising from the apps. Revenue was also generated from ads that gamers needed to watch to receive extra features in the game.
This response has prompted e-gaming businesses to change their models from download volumes to one engineered on consumer engagement and experience. With more than 400 gaming start-ups trying to make online games interactive for India’s 500 million smartphone users, the game tech industry looks at two-folding investments within a few years.
Gametech in India is a market worth tapping into for its immense potential. With the current scenario, we hope to see India become a key player in online gaming in the coming years.
Subscribe to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.
Follow us on LinkedIn and Twitter for insightful fintech tales curated for curious minds like you.
You have brought up a very wonderful points , regards for the post.