Next-gen payments best bet for gaming industry

Inclusive payment systems could empower African game developers to create culturally relevant games and monetise them locally.

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In a continent with potential yet often sidelined by global tech giants, Africa’s gaming industry is rapidly emerging as one of the fastest-growing markets worldwide.

With a youthful, technological population and a growing demand for digital entertainment, the opportunities are immense.

However, a significant barrier remains: an outdated and fragmented payment infrastructure that hinders the gaming ecosystem from achieving its full potential in this region.

For game developers in this continent, the focus is on how the payments landscape can have its evolution sped up to unlock the vast opportunities that lie ahead.

In Africa, the smartphone is not just a device, it’s a lifeline. The continent leapfrogged traditional computing and went straight to mobile phones, resulting in a mobile-first culture that dominates digital engagement.

This trend has extended into gaming, where affordable smartphones and falling data costs have created a thriving mobile gaming market.

In fact, according to a survey by GeoPoll, Africa’s gaming industry is expected to surpass $1 billion in 2024, driven by the rise of mobile games, as 92 percent of players play on their smartphones. However, popular free-to-play games often rely on microtransactions for revenue—unlocking extra lives, purchasing in-game currency, or acquiring exclusive skins.

However, many gamers may struggle to pay for these services. Africa’s payment landscape is fragmented, with low credit card penetration and a heavy reliance on cash. To monetise this market effectively, the industry needs to adopt payment systems that reflect the realities of African consumers.

Local payment solutions

The foundation of any seamless payment ecosystem is trust. Localised payment solutions can bridge the gap between global gaming platforms and African consumers, ensuring that payments are secure, accessible, and familiar.

Mobile money, a financial innovation pioneered in Africa, is one of the most promising tools for creating this trust. Integrating mobile money into gaming platforms could provide gamers with a seamless experience, removing participation barriers.

By embracing these localised payment systems, gaming companies can foster trust while broadening their audience base. For players, this translates to confidence that their money is safe and that their legitimate transactions are legitimate, encouraging repeat spending and long-term engagement.

Bridging divides with gaming

A seamless payment ecosystem does more than unlock revenue; it has the power to drive social inclusion. Gaming has become a universal language, connecting players across borders, socio-economic classes, and cultures. In Africa, where barriers to economic participation are often high, gaming represents a unique opportunity for inclusion.

Inclusive payment systems could empower African game developers to create culturally relevant games and monetise them locally.

Yet, many may struggle to scale their businesses without an easy way to accept payments.

A robust payment ecosystem would allow these creators to tap into a growing audience, reinvesting in the local economy and fostering a cycle of innovation.

Payments as the catalyst for Africa’s gaming revolution

Building a seamless payment ecosystem in Africa’s video game industry is not just a financial challenge but a cultural opportunity. By adopting mobile-first strategies, localising payments, and embracing gaming as a tool for inclusion, Africa can transform its gaming economy into a global force.

For the millions of young Africans already seeing gaming as more than just a pastime, this revolution could provide new avenues for creativity, connection, and economic empowerment. And for the world, it offers a fresh reminder of Africa’s boundless potential, waiting to be unlocked.

The future of gaming in Africa is not just bright but boundless. All it needs is the right key—and that key is payments.

The writer is the Senior Vice President EMEA at Xsolla

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