Gaming: a Microcosm of Payments

The Federal Reserve Bank of Kansas City has published an article on the evolution of video game payments infrastructure ¹. As gaming has become big business, companies have changed how they monetise and distribute games to their customers, as well as adapted and evolved their payments infrastructure to support new revenue models. Changes in gaming payments represents a microcosm of what is happening in payments more broadly.

The video game industry generated nearly $190 billion in global market revenue in 2024, more than the combined revenues of the global recorded music industry ($36 billion) and global box office industry ($32 billion).

In the US, video games generated $59 billion in revenue in 2024, with the average American household spending over $400 on video games. An estimated 190 million Americans, or about 60% of the US population, reported playing video games at least one hour every week in 2024. The average US video game player is between 35 and 44 years old. Although many players come from lower-income households, mobile gaming has found success among middle-income consumers and is attracting a growing number of female players.