Over the years, the gaming business has seen a lot of change. With the introduction of sophisticated technologies, the sector has progressed significantly. Now, with the recent arrival of FinTech, the gaming industry is destined to undergo even more transformation. Because online gaming frequently necessitates financial transactions, fintech plays an important role in providing safe and secure payment processes.
FinTech has transformed the gaming industry since the 2020 crisis. We’ve arrived at a time when the gaming industry is being driven by FinTech. Let’s take a look at some facts. According to one estimate, the worldwide gaming sector will be worth approximately 167.9 billion dollars in 2020. Due to a growth in the popularity, accessibility, and development of games, this value is predicted to expand to 287.1 billion dollars in the following five years. COVID-19 has been a driving force in moving consumers of all entertainment industries, such as movies, theatres, and music concerts, to online gaming.
Role of Fintech in the Gaming Industry
FinTech (financial technology) refers to a company that employs technology to improve the user’s financial transaction experience. There are numerous types of online gaming, including online casino video games, which are currently getting a lot of traction, and they all demand the option to be concerned with fintech and transactional options. The ubiquity of mobile gaming devices and the widespread availability of internet connectivity is driving the gaming industry’s rapid expansion. Fintech innovations also enable players and game producers to benefit from the area.
Online games were fully reliant on credit cards and major payment systems, as well as accounts and ATMs, prior to fintech developments. These were complicated and inconvenient. The gaming industry has been altered by the advent of prepaid and credit cards, as well as new payment alternatives, allowing gamers to enjoy both premium and freemium games. Amazon Payments, Google Checkout, Dwolla, Stripe, and other payment providers make it simple to make game-related transactions. Even the emergence of online wallets that may be linked to bank accounts has simplified purchasing.
As the use of mobile phones grows, so does the use of mobile payment systems, as huge IT corporations see this as a lucrative revenue opportunity. Mobile payment systems like Apple Pay, Samsung Pay, and WeChat, among others, enable mobile gamers to use money rapidly while playing and enjoying their favourite games.
In general, fintech has created a variety of apps that encourage normal people to save more money.
The online gambling industry is a small part of the overall gaming industry that has adapted and begun to use fintech in its payment process. Sites ranging from casinos to bingo halls have taken use of technological improvements to provide this service to their consumers. When customers play games on Wink Slots, for example, they can make deposits for online slot machines using a range of different payment methods, ranging from standard bank card methods to new ‘fintech’ provider techniques.
Fintech’s Contribution to the Gaming Industry’s Growth
Fintech, of course, increases the number of users that visit gaming sites because it is so much easier, but it also lowers the hurdles that many people face as a result of previous payment methods failing to function for them. In the end, this means that the consumer and the firm delivering the services may coexist together.
This is not only good for the user’s experience, but it also means that businesses will have considerably fewer financial problems and will be able to readily employ technology for monitoring, reporting, and transparency.
The great thing about fintech is that it doesn’t require much thought, especially from the user; it’s a quick and painless process that will only lead to a more favourable engagement overall. Fintech has been widely adopted in the online gaming industry, and it is becoming much easier for people to use the services effectively.
Massively Multiplayer Online (MMO) games, such as RuneScape and Gaia Online, attract a large number of players. Previously, the old payment options would stifle the gamers’ progress. After all, these games are rich and complicated, even fast-paced, and they focus on rewards, achievements, and continuous skill improvement.
One of the most appealing aspects of MMO games is the almost limitless potential for player advancement. To better their gameplay experience and become the top gamers, players are continually making purchases for virtual goods and things in the game.
Peer-to-peer transactions are becoming more common in MMO games. This means that players can buy and sell game things amongst themselves. Many users are even proposing to sell their game accounts for which they have invested a significant amount of time and effort.
As a result, we can see how Fintech is assisting microtransactions in games like these. Epic Games’ Fortnite is alleged to have made a significant amount of money only through microtransactions. The revenue earned by microtransactions in these free-to-play games helps video game creators to update and improve the game on a frequent basis, resulting in a better overall experience.
Fintech service providers may provide video game firms with a variety of benefits, including improved security, cash distribution, and more. For banks and businesses, these services have greatly reduced the stress of many operations.
The Future Impact
There will be some opposition to change, as there will be with any new technology, and people and corporations may oppose it for a period of time. However, there are a few causes for this that could be overlooked or solved with some careful consideration.
Because the method of payment is going to require a certain amount of data, fintech can remove the element of privacy. It has also been known to indicate spending patterns and this information being accessed by organisations that they may not have been related to otherwise. It, like any other technology, has the potential to exacerbate global inequity.
This is due to the fact that new technology can be pricey; nevertheless, Fintech tends to expense businesses rather than consumers. However, as with anything, costs gradually settle for the services provided and become more affordable. There is also technical leapfrogging that occurs in some countries, so not all is lost when new technology is launched. Fintech may potentially help to expand opportunities for those who previously had limited access to financial services. When it comes to Fintech, one thing is certain: with so many firms now using it and seeing the benefits, it will only get stronger, with more investment and study being done on a daily basis.
To sum up, any gaming investor cannot ignore the enormous influence FinTech has had and will continue to have in the future. Individual segments of a big market include revenues from game sales, E-sports events, gaming hardware, microtransactions, and online subscriptions. The gaming business is predicted to grow at an ever-increasing rate over the next five years, with each generation of gamers introducing new customers to a highly dynamic sector.
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