eSports and the growth of mobile payments

The popularity of eSports continues to rise, but what exactly are eSports and why have they become such a big deal?

Put simply, eSports are competitive video games, played at a professional level, where players compete in popular games, often in front of huge audiences. Once the mainstay of teenagers and cult gamers, eSports are rapidly moving into the mainstream with gaming now the fastest growing form of entertainment across the globe.

When the 2020 Grand National was cancelled because of the coronavirus pandemic, a virtual version of the race was held instead, using CGI technology and special algorithms. Forty runners took part and Potters Corner was the 18-1 winner. Also during the lockdown period, the Virtual Grand Prix series achieved a record-breaking 30 million views across TV and digital platforms.

While COVID-19 prevented the real-life races taking place, the series was created to enable fans to continue watching Formula 1 races virtually, and see their favourite drivers battle it out. Incredibly, more than half the F1 grid took to the track throughout the series, with official F1 drivers joined by a host of celebrities. These recent successes will catalyse the explosion of growth already being witnessed in the sector. According to business news site Business Insider, eSports revenue is projected to grow to more than $1.5 billion by 2023.

But what does this mean for mobile?

More people than ever are using their mobiles to get online and be entertained. In fact, the latest Ofcom report shows 81% of measured time spent online is on a mobile or tablet device.

Within the digital entertainment sector, the role of direct carrier billing (DCB) is becoming increasingly central as it allows users to pay for digital services as part of their monthly bill. DCB presents a fast and secure way of processing mobile payments for business and a hassle-free experience for the customer.

As a result, this seamless payment flow generates up to ten times better conversion rates than card payments. See how clipfeed, a provider of mobile entertainment are making waves with their platform for the provision of eSports service.

Here are four ways in which mobile payments are being used in the eSports sector:

Subscriptions

Subscription fees and recurring membership fees are two of the easiest ways to utilise mobile payments. DCB is secure and GDPR friendly because no personal data is transmitted, which makes it easier to manage.

In-app purchases

“Freemium” has become a dominant business model for gaming apps in recent years, where the app and its basic functions are free, but premium content is payable. With in-app purchases accounting for 95% of all user spend on gaming apps, DCB offers a seamless solution.

Prize payments

The biggest e-sports prize pot totalled more than $30million for a tournament in the US. While most businesses will not have cause to pay out this kind of money, DCB presents a secure option for the transfer of prize payments of any value.

Credits and top-ups

There are now five times more mobile phones in the world than credit cards, so it is little wonder that paying by mobile has become so popular. With today’s gamers used to accessing new content at the click of a button, mobile payments are a natural fit for the industry.

About MessageCloud

MessageCloud is a multi-award winning mobile messaging provider. Its cloud-based SMS and messaging products enable companies to set up and manage one-way and two-way communications effortlessly. Plus, it offers products to analyse phone numbers, verify users and accept payments by mobile.

With its range of products, ‘Send’, ‘Numbers’, ‘Verify’, ‘Analyse’ and ‘Pay’, MessageCloud delivers tools that maximise mobile marketing; from virtual numbers to payment systems for carrier billing. And with more than a decade of delivering messages for diverse markets around the globe, it is a service on which you can rely.