Bettina Sommer, SVP of Sales at DIMOCO Payments, argues how an agent model of payments can be the future of sports betting and online casino. DIMOCO Payments provides carrier billing payment solutions and is advocating for the increased uptake of the agent model.
In online casino and sports betting, payment systems are central to user experience and growth. With technology like Direct Carrier Billing (DCB) and the agent model, a new wave of accessibility and convenience is set to redefine payment practices. This shift is particularly transformative for sports betting and online casino, where speed, ease, and secure transactions directly impact user engagement and retention. The agent model, a collaboration between licensed payment providers and mobile network operators (MNOs), unlocks new possibilities in these industries by expanding the reach and flexibility of DCB.
Direct Carrier Billing: A Seamless Payment Solution
Direct Carrier Billing has long been a trusted payment method for small purchases like digital content, in-app transactions and mobile games. By enabling payments through mobile phone numbers, it removes barriers such as credit cards or complex online wallets. This straightforward approach not only simplifies the user experience but also enhances security since it minimises the exposure of sensitive information. With the rise of mobile gaming and sports betting—where 75% of bets are already placed through smartphones, according to industry reports—the demand for hassle-free mobile payment solutions is higher than ever.
The strength of DCB lies in its universal accessibility, relying on mobile numbers as unique, stable identifiers. Unlike credit card numbers, which are easily replaceable and not always tied to a single user, mobile numbers offer a consistent identifier that can support secure transactions. This reach and ease of use make DCB an ideal fit for high-frequency, quick-decision transactions such as placing bets during live sports events or accessing online gaming features.
Overcoming Limitations with the Agent Model
Despite its strengths, traditional DCB faces regulatory constraints, particularly in Europe, where regulations restrict its use to specific digital purchases and impose strict spending caps. To circumvent these limitations, companies like DIMOCO Payments have pioneered the agent model, a setup that allows licensed payment providers to partner with MNOs, transforming them into payment agents.
By lifting the restrictive digital-only and spending limits, the agent model opens DCB to non-digital goods and larger transactions, which significantly enhances its appeal to merchants and consumers alike. Especially in online casino and sports betting where different jurisdictions have different interpretations of PSD2. In Poland, DIMOCO collaborated with STS, a leading online sports betting company owned by multinational operator Entain, to enable users to place bets using DCB—a clear indicator of the model’s relevance and potential in online casino gaming.
Transformative Potential for Online Casino and Sports Betting
For online casino and sports betting, where convenience and immediacy are paramount, the agent model has the potential to redefine payment processes. The agent model streamlines the payment journey, minimising interruptions and allowing users to remain immersed in the game or live event. This seamless integration not only boosts user satisfaction but also encourages more frequent transactions, translating to increased revenue for operators.
Additionally, the model holds particular appeal for demographics traditionally underserved by digital payment methods. It enables users without access to bank accounts or credit cards to participate in online gaming, broadening the reach of online casino platforms to previously inaccessible markets.
Technology and Market Growth Support the Model’s Adoption
The expansion of the agent model coincides with other technological advancements that are poised to support its adoption. The rollout of 5G networks, which promises faster, more reliable mobile connectivity, will further facilitate real-time transactions that are essential in sports betting. Additionally, as more devices become interconnected via the Internet of Things (IoT), DCB’s simplicity and accessibility could become even more attractive for a range of applications.
Future Prospects
The agent model represents a critical development in the landscape of digital payments, specifically for online casino and sports betting. By leveraging the ubiquity of mobile phones and simplifying regulatory compliance, the model enhances user convenience, security, and accessibility in these sectors. Its ability to extend DCB’s applicability to broader use cases makes it a powerful tool for payment providers and operators looking to capitalise on mobile-driven growth in online casino gaming and sports betting.
