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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Digital Gaming: Expanding Prepaid Opportunities
The Growing Importance of Microtransactions in Digital Gaming:
- In-game purchases—sometimes known as “microtransactions”—are showing a great deal of promise for game developers.
- The global online microtransaction market is estimated to be roughly $33.4 billion.
- One report indicates that microtransactions will grow at a CAGR of 3.6% through 2025.
- League of Legends, an online game played by 115 million people globally, makes the vast majority of its $1.75 billion annual revenue from in-game purchases.
- Fortnite is another game that relies on microtransactions for much of its revenue, encouraging users to purchase in-game currency known as “V-Bucks.”
The U.S. digital gaming market is booming, spurred by the rise of e-commerce and the realities of the ongoing COVID-19 pandemic. The industry uses a wide variety of monetization strategies, with significant opportunities for prepaid card issuers.
This viewpoint describes revenue streams within the digital gaming industry, key trends in gaming, and prepaid opportunities within the space.