PayPal’s latest reports highlight that gaming is now a mainstream issue
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PayPal’s latest reports highlight that gaming is now a mainstream issue

Everyone knows that video games are big business by now – but the true extent of their move into mainstream culture has just been elaborated by reports from online payment facilitator PayPal. According to the company, gaming accounts for “over $12 billion” of its total worldwide payment volume. That’s a staggering amount, equal to almost half of the total music industry worldwide!

PayPal’s share price has increased by 15% so far this year

graph 0506 paypal

SOURCE: Yahoo Finance

While the sheer scale of the payment volumes PayPal processes in regards to gaming is impressive, the speed at which it is growing is equally so: it’s a 23% increase, year over year. And it comes from an enormous mount of different storefronts (26 in the U.S., 27 in Russia, and 28 in Australia and Canada both).

According to PayPal, gaming might be going down the digital download route – but it’s not quite there yet. 45% of U.S. gamers still patronize brick and mortar retailer GameStop. Additionally, almost half of the customers in the video game market (44%) were willing to walk away from Ecommerce sales if their preferred payment method wasn’t available.

What do all these impressive numbers add up to? Well, for one thing, PayPal definitely has yet another powerful income stream to capitalise on in a post-eBay world. For another, gaming is clearly a huge industry that nonetheless has some obvious room to grow (45% of all gamers in the U.S. use a single brick and mortar retail chain? Really? That’s great news for digital download pioneers, who will look to convert them).

It’s also a great time for PayPal to have released these figures – the video game industry showcase, E3, is just over the horizon. Of course, we’ll be filling you in on the relevant news as soon as it hits.

Disclosure

Dominion holds PayPal, Activision Blizzard, Electronic Arts, and other companies involved in the payments and video game sectors.


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The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.