Traditional events and sports are off the cards all over the world, thanks to government restrictions. As a result, consumers have switched to video gaming and eSports, with player engagement rates of both at an all time high. The increased demand for video games when selling in traditional retail outlets are not possible has prompted some video games publishers to shift their operations to entirely digital marketplace, with many opting for direct to consumer business models. Direct to consumer models allow publishers to expand into new geographic markets more easily, as they negate the need for relationships with retail distributors and can significantly save distribution costs.
However, the move to a direct to consumer model has its challenges for publishers, especially around payments. While video games are now available to people in different countries, global payments have yet to be uniformed. Therefore, in order to effectively serve consumers in different geographic markets, publishers need to position themselves to accept payments in different currencies and using different payment methods. Those publishers who successfully transition to a direct to consumer model will be aware of payments trends in local markets, such as whether more customers use mobile payments or whether the local economy is largely cash based and adapt their payment systems accordingly. By combining knowledge of these local market trends with general trends in the payments industry, such as the shift towards open banking and agile payments systems, with their knowledge of market trends in the gaming industry, publishers can maximise their profits from direct to consumer models.