iGaming has been on quite the hot streak, and it doesn’t appear to be slowing down any time soon. Policymakers have scaled back gambling restrictions in many states — a trend that is expected to continue over the next few years. As a result, reports suggest that the iGaming industry could grow from $59.6 billion in 2020 to $127.3 billion by 2027. (1)
Gaming platforms are poised to benefit from secular tailwinds, so there’s an incentive to establish oneself at the head of the pack. In turn, platforms have doubled down on their advertising efforts. One report indicates that the gaming industry collectively spent $488 million on advertising in a recent 12-month stretch. (2) Considering regulatory shifts throughout the country, it’s not unrealistic to assume these figures will continue rising as well over the next decade.
But driving new players to your platform is not the end — it’s just the beginning. To maximize this extensive capital investment, iGaming platforms must ensure new players have a seamless experience from the moment they first enter your platform to the moment they cash out. That’s where the latest payment technology comes into play.
6 ways payment technology is supercharging the iGaming industry
Players have gained the ability to heavily scrutinize platforms because they have options. This has accentuated the need for innovative features, constant uptime and a nearly instantaneous flow of funds in and out of the platform.
Here are six ways payment technology can help iGaming providers separate themselves from the pack.
1. Integrated payments improve the player experience.
Consumer expectations are on the rise — no matter the industry. However, gaming companies face a particularly unique challenge when it comes to maintaining a frictionless player experience, as upfront deposits are often required to participate. That underlines the importance of quick and easy transactions between the player and the platform.
But third-party payment sites or a clunky payment process can be a bottleneck in the process. When players are directed to unrecognized sites or stumble through how to add money to the game, they can be dissuaded from entering financial information. By integrating payment processing functionality into their existing software, iGaming providers can improve the payment process allowing players to complete transactions through the existing platform with little effort. In turn, gaming companies can reduce churn, boost retention and bolster security.
2. Open banking connections expedite onboarding.
Landing new users is a delicate process. So is facilitating transactions. One survey determined that 85% of executives believe a smooth digital payment process is necessary to not only gain a competitive edge but also survive as a business. (3) Complexity, friction, confusion — any of these factors can drive a potential new user to walk away during the onboarding process.
Fortunately, open banking has changed the way players and iGaming platforms interact. Thanks to layered-in banking APIs and developer tools that enable personalization, onboarding new players is as smooth as ever. Players can easily connect their credit card or bank account information in a matter of minutes.
3. Instant deposits and withdrawals keep players in the game.
Convenience is paramount in the iGaming space, especially when it comes to depositing and withdrawing funds. Sports betting is tied to scheduled events, and online gaming players don’t want to wait for payments to process. In short, time is of the essence. If players can’t add funds right away, they’ll go elsewhere. If players can’t withdraw funds in a timely manner, iGaming providers better be able to handle an influx of customer service grievances and public criticism.
By adopting the latest payment technology, iGaming providers can optimize the transfer process. For example, Certegy’s BankPay solution reviews and verifies requests in real time. Once approved, players have immediate access to their newly deposited funds. When the time comes to cash out winnings, BankPay enables next-day payment via the ACH network as well. Soon, BankPay will also enable Real-Time Disbursements for instant payouts.
4. Payment technology gives iGaming providers power over data.
Data is a powerful tool in this day and age, but the use of multiple platforms to facilitate transactions leads to siloed data sources. By incorporating payment technology into existing software, iGaming providers can consolidate transactional data and reduce reliance on manual accounts payable processes.
On top of that, gaming companies can also use data to recognize patterns — such as player preferences for particular games, deposit and withdrawal amounts, or player trends on specific days — and make informed business decisions.
5. Crypto opens the door to new opportunities — and players.
As cryptocurrency has gained traction as legal tender, the gaming industry has adapted. Some in-person casinos have already partnered with crypto payment processors, enabling the acceptance of crypto holdings. (5) Online casinos and sportsbooks must also embrace the latest trend of an ever-changing payment landscape. As controversial as crypto can be, the underlying technology does allow for widespread access, which helps abroad players navigate currency limitations.
6. Payment technology takes risk off the table.
Companies within the gaming industry are familiar with risk. But we’re not talking about predicting sporting outcomes and partaking in games of chance. Sports betting and online gaming platforms are also susceptible to fraud.
The latest payment technology can help. According to a recent survey, executives believed that artificial intelligence (AI) had the biggest impact on improved security and fraud protection. Moreover, many executives already leverage AI for pattern recognition (52%) and machine learning (46%) to help with transaction security. (4)
iGaming providers can further insulate themselves from payment risk by relying on warranty programs too. For instance, Certegy’s Warranty Program guarantees 100% reimbursement in the event of bounced payments, closed accounts and other forms of fraud.
To learn more about our solutions, click here.