The industry for digital goods and services is growing at an unstoppable pace – mobile gaming is emerging as both a cultural phenomenon and a lucrative industry, projected to become a US$342 billion industry by 2034, and Asia’s creator economy is currently valued at approximately US$18.35 billion and expected to reach US$52.17 billion by 2030.

As a whole,  Southeast Asia’s digital economy is estimated to hit US$600 billion in gross merchandise value (GMV) by 2030.

As more of our everyday habits intertwine with the online world, the fast-paced growth of digital commerce will continue to transform the way we live, play and pay. 

This presents significant opportunities, but also unique challenges. Gaming and entertainment publishers face hurdles such as traditional app store fees, evolving global regulations, fragmentation of preferred payment methods, and rapidly changing player preferences. The question is: how can publishers not merely survive, but thrive in this dynamic environment?

Navigating a new era of regulation

Inspired by the EU’s Digital Markets Act, Asian markets are stepping up with their own frameworks to promote competition and protect consumers. Japan and South Korea are pushing back against Big Tech limiting third-party app sales with antitrust measures. India’s Digital Competition Bill is introducing anti-competitive practices; and Indonesia is reviewing its regulatory framework for digital platforms.

The message to publishers — new or old — is clear: adapt or be left behind. 

Tapping on alternative payment methods

Digital wallets are now the main way to pay in Asia. According to a 2024 report by Deloitte, the Asia Pacific region has the highest digital wallet penetration rates amongst all regions, making up over two-thirds of global digital wallet spend at a combined US$9.8 trillion. 

In Southeast Asia, six out of ten people lack full access to banking services. Coupled with decreasing customer loyalty, this makes localised alternative payment solutions like digital wallets and carrier billing crucial. Publishers who integrate these methods gain access to a massive, underserved audience.

Scale smarter, not harder: The merchant of record advantage

Scaling globally isn’t just about reaching more customers—it’s about doing it efficiently and legally. The Merchant of Record (MoR) model offers publishers a smarter way to expand in today’s complex environment. How does it work?

An MoR acts as the legal entity responsible for managing payments, taxes, and compliance on behalf of publishers, allowing businesses to focus on what matters: building their business. 

By centralising these critical functions, the MoR model abstracts away the complexity of  navigating diverse regulatory frameworks, accelerates market entry and mitigates the risk of penalties by ensuring adherence to tax laws and regulations in various markets. 

Supporting a wide array of local payment methods, MoR also allows publishers to expand their reach to underserved consumers, particularly in regions with limited access to traditional payment systems.

Evolution in the digital economy means new opportunities for savvy digital goods providers who adopt the right strategies that bring them increased profits, deeper customer insights, wider reach and greater control. Embracing models like MoR simplifies global expansion, compliance, and consumer connections, turning digital disruption into competitive advantage. 

Source: e27 / Digpu NewsTex