Split from eBay, PayPal can focus on its strongest digital categories and grow in acceptance as the top game currency.
As a game currency, PayPal is already at the top – pulling in a quarter of all revenue among consumer-facing brands in digital games, according to data by SuperData Research. PayPal has many advantages over credit cards, including tying directly to bank accounts (helpful for consumers without credit cards), and a digital-first development framework that makes the platform easy to integrate into digital games. The game currency also excels in many international regions.
Digital games were never a sweet spot for eBay as a company, with the company’s core service dedicated to physical goods auctions. But by becoming independent of the auction site, PayPal management can focus solely on growing digital opportunities, and given the importance of games on mobile platforms, games will surely be towards the top of PayPal’s strategy.
PayPal today has roughly 153 million active digital wallets worldwide, and with microtransactions growing across all categories of video games, the platform has room for growth.
In top European markets, over half of all digital gamers have PayPal wallets. In the U.S., by volume, PayPal already accounts for 26% of digital games revenue.
CONSULGAMER expects PayPal to aggressively build out digital services for game developers and publishers. PayPal may also push towards new deals with leading game currency-holders on consoles, PC and mobile, making it easier than ever to refill game currency using PayPal digital wallets.
Source: SuperData Research