Payments may seem simple on the surface, but in a growing, global industry some transactions become incredibly complex.
It’s no surprise that in a global industry, just over half (61%*) of esports companies say that it is not easy to manage international payments. Dealing with international regulations, exchanging currency and processing transactions quickly are critical to building an international fanbase. Having a reliable provider that can help companies navigate these concerns could be a major strategic advantage going forward.
Nearly as many esports companies (59%*) say that they do not have an easy time balancing security and convenience for payments. Too few security measures and businesses will see higher rates of fraud and chargebacks. Meanwhile, too many security measures will result in customers leaving before completing purchases. Ultimately, having a payment provider that allows esports companies to customise and optimise their level of security could resolve this particular pain point.
Additionally, one in two (49%*) esports companies say that paying players is not simple to manage. This is particularly true for event organisers where 59%* say paying out to players is not easy. Difficulty managing these payouts is reflected in how long it takes for these payouts to be made. On average, esports teams, tournament organisers and talent agencies report that payouts take 33 days to clear. Features that could automate these player payouts could be a significant advantage for esports companies and vendors.
While these challenges are significant, there are potential solutions on the horizon. To learn more about esports companies’ outlook on the industry, their monetisation strategies, and the role payments play in reaching these goals, consider reading ESI’s Payments and the Monetization of Esports Study, in collaboration with Nuvei and PayPal.
*All statistics mentioned throughout this article have been taken from the Payments and the Monetization of Esports Whitepaper.
Supported by Nuvei and PayPal