The number of payment options available to customers is an acquisition and retention factor that all companies, including betting operators, cannot afford to ignore in the modern era of digital consumption.
In a recent op-ed for SBC News, Martyn Hannah, MD of casino Comparasino, shared his observations on how bettors preferences are being shaped by increasingly diverse payment offerings.
Debit cards are of course the dominant form of payment method for most online transactions, betting included. This is particularly true in the traditional banking markets of Europe and the US.
However, methods such as PayPal, ApplePay, AstroPay and NeoSurf are becoming increasingly popular. Offering these methods can bring much customer retention and draw in new ones in being able to separate themselves from competitors in the pursuit of a streamlined customer experience.
“These methods offer the near-instant deposits and withdrawals that players expect, as well as a level of anonymity and security they don’t get with debit cards,” Hannah remarked.
Customers are increasingly demanding instant payments, and for punters, long delays in receiving a withdrawal after a win on a sports event or at an online casino table can be a big cause of much friction. .
Some operators have been taking note of this, however, with many partnering with Open Banking providers, such as Trustly and TrueLayer, to enable faster payments and withdrawals. Firms which have not done so may risk being left behind.
“Online sportsbooks and casinos are quick to take a player’s money but then expect them to wait several days to receive their payouts,” Hannah continued.
“This is not good enough and can really damage the trust the player has in the brand, making them more susceptible to a rival’s bonus offer. Providing instant withdrawals can be easier said than done. This is why digital wallets have long been popular with players.
“Because the withdrawal is sent from the casino directly to the digital wallet, it doesn’t have to be cleared by the bank which is what usually causes the delay in the player getting their winnings.”
Keeping on point with consumer demands for payments is crucial for operators, and any other company active in the online and/or international sphere for that matter.
Geography and demographics are important factors to consider for this. For example, taking into account the popularity of unified payments systems such as Brazil’s PIX and the uptake of alternative payment methods in Latin American and African markets, can go a long way.
On demographics, it is noticeable that Gen Z and millennial consumers are much more open to new payments technologies, such as digital wallets, as opposed to older customers who prefer cash and debit cards, as observed at the Pay360 conference last month.
Companies across the breadth of online business need to keep their fingers on the pulse of evolving payments technology and customer preferences to stay on top in an ever-changing and highly competitive landscape.
