In 2022, we witnessed a triumphant return of business events following a brief hiatus from events since the outbreak of the Covid-19 pandemic. We were excited to engage again face to face and network with partners, brands and professionals across industries and geographies.
In this article, our gambling team shares the top trends they identified at leading industry events over the past year.
Digital wallets are on the rise
In an age where global consumers are pivoting toward digitalised payments, we observed a hike in the adoption of digital wallets (or else eWallets). This was particularly highlighted at ICE London – the largest global gathering of gaming professionals. Discussing the benefits of eWallets with industry leaders, it was evident that convenience in completing online transactions is crucial for consumers.
eWallets are an essential addition to an operator's payment offering. Firstly, they are known for their simplicity of use and speed in processing transactions. Furthermore, consumers prefer them for the increased security they offer, helping build more trust in your brand. As highlighted at ICE London, industry operators with global expansion ambitions need to cater to the preferences of their target consumers. This includes allowing them to pay in their preferred payment methods, including digital wallets, and, wherever possible, in their local currency.
"Providing your customers' payment methods of choice at checkout can be a game-changer for gaming businesses looking to increase their revenue and conversions."Chris Smart | SVP Global Gambling and FX at emerchantpay
Tackling online payment fraud
The surge of fraud in online transactions was a prime topic at the iGaming conference of iGB Live in Amsterdam this year. As of 2021, online payment fraud totalled an alarming $20 billion, which necessitates industry operators to act on the evolving fraud threat. An efficient way to achieve this according to emerchantpay's The Great Payments Transformation whitepaper is by identifying areas of improvement within payment systems. As our research uncovers, all gambling operators surveyed have lost up to 25% in revenue due to pitfalls in their payment strategies, with more than a third (38%) citing analysing fraud data to implement new rules efficiently as one of the top areas that can be optimised.
Evidently, lacking the resources to interpret data and track fraudulent transactions may cause chargebacks which can, consequently, damage a business's reputation and financial integrity. Working with a payment service provider with years of experience in the industry and who is armed with risk management and fraud prevention tools can support operators in safeguarding revenue and profitability.
As Chris Smart says in his interview at iGB Live:
“Without a doubt, security in payments is a key retention tool. If we can make payments an easy, seamless, frictionless and safe process, then consumers are going to develop brand loyalty and stay with their operators.”
Easy deposits and fast pay-outs are an industry must-have
Our very own Chris Smart was a keynote speaker in a panel on payment innovation at SBC Summit in Barcelona, discussing the future of sports betting and iGaming as well as ways to remove the pain points from the gamer's payment journey. Enabling faster and more efficient pay-outs can help improve the gaming process while encouraging repeat custom and opening new revenue streams for operators.
In fact, speedy pay-outs are a growing area of consideration in the industry for numerous reasons. Firstly, they can be an indication that the internal processes of operators for responding to withdrawal requests are well set up. Enhanced payment strategies for industry operators can facilitate fast pay-outs, thereby enabling a smooth customer experience that favours conversions. Secondly, fast pay-outs can help replicate the in-person gaming experience, which can turn online gaming into a more immersive activity while providing a top-tier gaming journey.
Furthermore, the roadblocks that players face when depositing funds, with withdrawals taking too long to complete. As noted, industry operators who aspire to drive lifetime player value and retention should have streamlined business processes to make sure the stages of the deposit and withdrawal are seamless throughout.
It was interesting to see how the year has developed for various industry segments – from eSports to horse racing and online gaming among others – in tandem with shifting customer needs, while finding out how the sector will evolve in 2023 and beyond.
As Chris Smart points out:
"At SiGMA, we had three busy days of conversations about all things licensing in new markets industry leaders wish to set foot into, interest in local and global payment options, and safe payment card processing among others."
Keeping up with regulatory compliance
Central in SiGMA Europe, a leading gaming show hosted in Malta, was keeping up with ever-changing regulatory requirements. Each country has its own unique payment and licensing requirements that are shifting at rapid pace. Partnering with a payment service provider that has extensive experience in the industry can help operators stay abreast of payment requirements for the gambling and gaming industry in key markets. This way, operators can also ensure their customers' transactions are processed with transparency and payments compliance with each region's regulations. In turn, this can lead to improved payment acceptance rates and increased revenue.
As Chris adds:
"Innovation and optimisations in payments are a staple in gaming. Therefore, it's important that operators [and their payment service providers] stay at the forefront of new initiatives, requirements, payment solutions and their associated changing processes."
How emerchantpay can help
2022 was a busy year for the gaming industry. There’s no doubt that operators are looking to expand beyond their geographic borders while ensuring regulatory compliance. Partnering with a trusted payment service provider with extensive experience in the industry will help them stay compliant with the payments regulatory environment of their target markets, optimise conversions and maximise revenue. At emerchantpay, we believe an optimised payment strategy can result in a smoother customer journey and higher profitability for gambling operators.
Counting 20 years of industry experience and a value-added platform that’s built for high-volume processing, gambling and online gaming operators can ensure frictionless and quick deposits and withdrawals for their customers.
Via our global acquiring network and over 50 gaming-specific payment options, you can make sure your local consumers can deposit and withdraw with their preferred payment option. We work closely with gambling operators to understand their business model and needs, providing data-driven insights to help them find areas to improve their operations. With strategic advisory and adaptations in their payment strategy, industry operators are well-placed to maximise their revenue and profitability.
Speak to payment experts today and learn how you can future-proof your gambling business with a better performing payments strategy.