Technology has considerably reformed the gambling industry in the past few years. More so than ever, the consumer expects to make speedy and secure deposits or withdrawals across any device via their payment method and currency of choice. In this case, frictionless gaming payments can be the golden keys for any gambling operator’s door to business success. Nevertheless, according to our research, as presented in our latest The Great Payments Transformation whitepaper covering a range of industries across the UK and Germany, all our respondents (100%) in gambling admit up to 25% worth of revenue losses as a result of shortcomings in their payments infrastructure.
In this article, we shed light on what’s hindering investments in payments performance optimisation. We’re also looking at the actions gambling operators can take to enhance their payment efficiency, and what to expect from optimised payments.
Highlighting payments performance to safeguard revenue
Payment performance is a vital factor to an organisation's resilience and growth. As our research shows, however, gambling companies experience a dent in revenue because of poor payments performance. On top of that, the ever-changing regulatory landscape, shifting consumer expectations, and new fraud threats are setting ever-higher expectations that gambling operators seem to grapple with.
Acknowledging the need for change, over four out of ten (44%) payment leaders in gambling cite optimising payments routing (44%), prioritising local preferred payment methods on the payments page (42%) and analysing fraud data to implement new rules efficiently (38%) as the top three areas that could be improved for increased profitability. Upon implementing these changes, the majority (59%) anticipates a 4-6% uplift in revenue while a further quarter (27%) expect a 7-10% boost in revenue.
But what's impeding payment leaders in gambling from evolving their payments strategy? The lack of budget and cost issues were reported by one in three (38%) respondents as the main blocker to investing in optimising payments. This is further amplified by regulation burdens taking away focus and time as well as a shortage of data or good quality data. Despite these figures, some gambling executives appeared optimistic. In fact, a quarter (25%) reported that there were no barriers along their way towards making investments in payments performance optimisation.
60% of gambling operators aren't happy with their payments partner
Improving payment systems can have tangible commercial benefits to the gambling sector, enabling maximised profit margins. Whereas gambling professionals are aware of this, they’re still obstructed by several blockers we explored earlier which hold back investment.
Therefore, it comes as no surprise that one-third (38%) of gambling businesses said staying on top of evolving customer payment preferences is the second most crucial concern about payments performance in 2022. Arguably, this is because they feel they’re lacking the in-house talent that could help them redefine their payments inefficiency to power up performance. It is no wonder then that finding talent is a top concern for 42% of gambling executives this year.
When it comes to making improvements, 42% of gambling operators surveyed were seeing the urgency to do so in H1 2022, while 34% of them are looking to initiate changes by the end of 2022. Further predictions related to the payment methods that will prevail in gambling in the next 12 months find digital wallets (59%) on top, followed by open banking and subscription payments with 45% and 40%, respectively.
Evidently, gambling businesses are keen to evolve their payment processes. This could be because they realise that in a digitalised age, having the right payments partner to help them navigate shifting customer demand and evolving regulation should be top of mind. When asked about their level of satisfaction working with a payment service provider (PSP), 60% of gambling executives interviewed across the board are open to changing their payments partner. This comes to show that partnering up with a payment service provider that knows the ins and outs of your company and provides strategic 1:1 support is essential, as it can help drive agility in your commerce and wider business objectives.
How emerchantpay can help
Nowadays, online gamers require faster payouts and more seamless ways to deposit their funds. At emerchantpay, we believe that an optimised payment performance can lead to a smoother customer journey and higher profitability within the gambling sector. With our extensive industry experience of 20 years and a platform that’s designed to tackle high-volume processing, gambling and online gaming operators can ensure effortless and speedy payments for their customers.
Additionally, through our global acquiring network and over 50 gaming-specific payment options, you can set foot into new markets with the relevant local licensing in place. Our highly configurable, real-time fraud prevention risk engine can support improving acceptance rates, as it analyses transactions and generates anti-fraud models.
Speak to one of our payment experts today and learn how you can take your business to the next level with a better-performing payments strategy.