Player conversion presents a whole host of challenges in and of itself. And with player acquisition costs slowly creeping up as a result of more costly marketing efforts, sportsbook operators need to do everything in their power to optimise their performance and effectively convert players – especially if they want to protect those top-line revenue figures.
One such way of doing that is to boost cashier conversion rates. Whilst it may sound tricky from the outset, I believe that there are some key strategies that should be considered when working with a payments provider to make your cashier operate more effectively.
Let’s start with transaction routing.
One of the biggest hurdles for cashier abandonment is transactions being declined. And more times than not, this isn’t due to the funds available. It can happen for a whole host of reasons, such as the communication, or failure thereof, between the player’s card issuer and the operator’s acquiring partner.
By using smart transaction routing, the payments partner can support multiple acquirer relationships. Every transaction can then be analysed by a customisable routing engine to determine where to send the payment to ensure the greatest chance of approval.
At Nuvei, we work with more than 200 local acquirers across the world. Recently, we supported Caliente in boosting its card acceptance rate by 10% – all done by employing a combined strategy centred around smart transaction routing to local acquirers.
How about partial approvals?
Sometimes, players may attempt to make a transaction that exceeds the maximum limit that their issuer allows. There can be other reasons for this, but in the majority of cases this is because the player doesn’t have enough funds in their bank account to cover the transaction value.
Traditionally, these transactions would be automatically declined. But by using partial approvals, we can identify these transactions before the issuer declines the deposit and offers the player the option to deposit a lower value that will be approved, or to cancel the transaction altogether.
Strong Customer Authentication – a strategic approach is a must
Since the introduction of the PSD2 regulations across Europe, we have seen a growing use of Strong Customer Authentication (SCA).
Even though many card schemes are still pushing 3D Secure 2 (3DS2) as the preferred SCA solution, this can create additional friction in the deposit approval process which, as you can imagine, has negative impacts on player conversion.
But with the negatives are some positives – 3DS2 has been shown to be more effective at identifying and deterring criminal activity.
Operators should consider employing a handful of exemption rules that can be applied to transactions to bypass the need for multi-factor authentication where the risk that the payment is fraudulent is low. Operators should work with their payment provider to identify a level of risk they are comfortable with and apply the appropriate level of Transaction Risk Analysis (TRA) exemptions to ensure that fraudsters are caught and stopped, but that legitimate players can deposit seamlessly.
More payment methods
Variety is the spice of life, and that can also be applicable to payments. With card payments, prepaid cards, eCash, store cards and online bank transfers all a la mode, it’s of the utmost importance that igaming operators accommodate these various payment methods to ensure that no player is limited in their deposit capabilities.
The US is, without a doubt, more reliant on card payments when compared to most other countries. But in other regions such as Africa, Europe and Latin America, local payment methods such as Bizum, Boleto, iDeal, OKTO.CASH, Pix and SafetyPay are much more common.
Without that safety net of being able to use different payment methods, players are becoming much more prepared to walk away. To avoid high rates of checkout abandonment, operators need to offer all the relevant payment methods in every market they are live in.
For the igaming sector, alternative payment methods play another important role. If a card transaction is declined, operators with a wide selection of deposit methods can automatically prompt other payment methods to avoid losing the player. Operators that don’t will lose the player immediately once the transaction is declined.
One click deposits
Reducing friction at the checkout wherever possible will inevitably boost conversion rates. There are a number of ways to do this in addition to making as many transactions as possible SCA-exempt. Storing card details in a manner that is compliant with card scheme regulations enables returning players to deposit with a single click. Other payment methods also enable one click deposits; for example, Nuvei Instant Bank Transfer’s exclusive integration with Plaid enables automatic verification and one click payments after the initial transaction.
Quick in-game deposits without having to return to the main cashier, and auto-suggested smart deposit amounts are other cashier functions that can expedite the deposit process and increase conversion rates.
Withdrawals – speed is king
Have you ever tried to withdraw money and become frustrated at the length of time it takes? Bettors are the same – which is why it’s critical for operators to demonstrate that players can have quick, secure access to their funds when they request a payout.
Put simply, players do not want to be waiting several days for their payout to be settled. Assuring them that there are instant agnostic payout methods available when they deposit will prevent abandonments and boost conversion rates.
Nuvei was the first payment provider to bring real-time payouts to the US igaming industry in 2021 via Instant Bank Transfer. Other real-time withdrawal methods available include instant payouts to cards via Visa Direct and Mastercard Send.
For more information about how to optimise your cashier, and how payments can accelerate your iGaming business, contact us today.