Question

In what type of two-sided market does Animoca compete?

Short answer

• The more customers who use Apple Pay in stores, the more probable establishments will accept it as a payment method.
• Similarly, if Apple Pay became more widely recognized, more people would be forced to use it.

Step-by-step solution

Step 1:Introduction

• Animoca Brands and its subsidiaries create and distribute a variety of blockchain-based, conventional, and other games.
• Formula 1®, Disney, WWE, Power Rangers, Moto GPTM, and Doraemon are among the well-known global companies covered.

Step 2:Explanation of two side market

A two-sided market exists when two user groups or agents interact for the advantage of both sides through the use of a facilitator or a gateway.

Step 3:Example of two sided market

• A transaction application, for example, may be required to construct a multiple trade.
• A significant number of merchants would need to sign up to accept payments through the platform, as would a sufficient number of consumers using the payments app.
• The greater the number of individuals who utilise a service like Apple Pay in stores, the more probable it is that stores will accept Apple Pay as a payment option.
• Furthermore, if so many businesses accept Apple Pay, more consumers will be able to use it.