Brazilian Virtual Goods Sales To Double To $320 million By 2014

Asia isn't the only international market blooming in the gaming space. According to SuperData Research, the Latin American virtual goods market is expected to reach $624M by 2014, with Brazil making up more than half of that number.

Asia isn’t the only international market blooming in the gaming space. According to SuperData Research, the Latin American virtual goods market is expected to reach $624M by 2014, with Brazil making up more than half of that number. More after the jump.

Digital goods measurement company SuperData Research has compiled a report that consists of roughly 200,000 unique virtual goods transactions from online gaming properties as well as a survey of about 500 online gamers from Brazil revealing some interesting statistics.

Latin American has been largely untapped but is being eyed by browsed-based MMO publishers and social game companies for its vast potential but is notorious for its inability to monetize players – especially because of a lack of credit cards. However there are avid social gamers that are willing to pay using prepaid cards. There is less than 1 credit card in circulation per person in Latin America currently, compared with roughly 2.5 in the US according to the International Trade Administration.

SuperData Research expects the Brazilian market to become a top priority for gaming companies over the next few years as Brazilian virtual good sales double from $165M today to $320M by 2014. Capitalizing on this opportunity is Zynga as it has announced a partnership with Mentez, a leading social game publisher in Brazil, to sell prepaid cards at over a million locations in Brazil and rest of Latin America.

“Brazil is the crown jewel in Latin American market for online entertainment,” says lead analyst Joost van Dreunen, Ph.D. “Its preference for cash-based payment methods, for example, directly benefits publishers’ bottom-line by avoiding costly charge backs. With declining margins between acquisition cost and average revenue per user in more developed markets, Brazil presents a financially sound opportunity for continued growth.”

Based out of Miami, Mentez operates a Paymentez network that enables users to purchase virtual goods using a PIN number they purchase from retail stores. The Zynga Game Cards will be available in Brazil at several locations and in Mexico and other countries soon.

Mentez’s Paymentez platform has over 4 million active users handling 650 transactions a second according to Venturebeat. Mentez raised a round of funding last August to expand its games portfolio in addition to announcing a partnership to publish Playdom games in South America. At the time it had 21 games on Orkut and seven games on Facebook. With over 200 million people in Brazil and 75 million internet users, Latin America could very well mark a great upcoming opportunity for developers.

Recommended articles