How payments orchestration gets more players into games by opening up payment options

Over the past two years, registrations for online gambling websites and programs have increased dramatically. Due to the effects of the lockdown forcing casinos and arcades to close, online poker and online sports betting, among several other forms of iGaming, have become increasingly popular.

Digital payments have also seen an increase over the past two years. While alternative payment methods (APM) were already increasingly used before the pandemic, forcing online gamers to phase out cash and tap payments, many were looking to embrace new payment methods to play. Add to this that the use of credit cards for online gambling has been capped, or in some countries completely banned, and it becomes clear that APMs are a very popular form of payment for the online gambling industry and sports betting.

Armed and accustomed to a range of APMs, consumers can spend their money to gamble from almost anywhere in the world, from card or cash wallets to mobile payments and prepaid cards.

Gaming operators unable to accept these APMs risk creating friction points for customers that interfere with their growth ambitions and prevent them from scaling their businesses to serve a global customer base and reach new markets.

The Rise and Rise of APMs

Consumer adoption of APMs is growing exponentially and is estimated to account for more than half of all global e-commerce payments in 2019 – the latest year for which results are available. At a more regional level, it is reported that in Europe, when they reach the point of sale (POS), 80% of consumers expect to pay for their goods and services with a digital payment method rather than a conventional debit or credit card. .

Meanwhile, in the Asia-Pacific (APAC) region, almost all consumers (94%) say they would consider using an APM in 2022 and within Middle East and North Africa experts (MENA), digital wallets are on their way to becoming the region’s preferred means of payment. Thanks in large part to the pandemic and the need for online, digital and contactless payments, Latin America is also catching up with 55% of the population now banked and the use of APMs steadily increasing.

As we can see, consumers are increasingly turning to APMs. For gaming operators with cross-border growth ambitions, this means developing an APM strategy is now crucial to breaking into global markets and generating revenue.

Prevent play

As more gaming operators face international growth ambitions, the inability to accept a customer’s preferred payment method is one of the most reliable ways to turn players away. Indeed, a recent study in the United States found that 42% of American consumers would interrupt a purchase if their preferred payment method was unavailable.

The problem for gambling operators is that with all these different payment methods, some more popular in specific regions than others, and with a gauntlet of contrasting international regulations to navigate, implement and manage all these methods can be incredibly difficult.

It is in part because of their ability to deal with these frictions that payment orchestration platforms are gaining popularity.

Enter the payment orchestration provider

According to PYMNTs, the global market for payment orchestration platforms is also expected to grow by 20% annually between 2021 and 2026. With each new merchant implementing the technology, consumers around the world have a new place to spend their money from the way that suits them. better.

The platforms provide gaming operators with a single interface through which all transactions between them, their customers and their payment providers are initiated, directed and validated. The agility this gives gaming operators who would otherwise need to manually onboard new APM options – resulting in extended time to market and reduced competitiveness – is significant.

Additionally, the complexity of monitoring the performance of multiple manually integrated and siled payment methods would add to these hurdles and delays. Here, payment orchestration intercepts by automatically aggregating and processing these crucial data streams and providing gaming operators with valuable real-time analytics that save time, prevent human error, and help decision making.

This speed to market, coupled with comprehensive real-time reporting, allows gaming operators to begin increasing their short-term revenue and make better decisions to facilitate long-term growth. However, the opportunities to improve cash flow don’t stop there.

When a gaming operator relies on a single acquirer/PSP, they are the ones who ultimately control the flow of transactions. For example, if the PSP succumbs to a breakdown, the game operator is then directly impacted. Similarly, if the PSP routes transactions to a specific acquirer, there is little the gaming operator can do if the costs it incurs from that acquirer are unfavorable to it. A payment orchestration provider corrects this imbalance by transferring control of transaction flow to the gaming operator by allowing them to create real-time rules to switch transactions and offer APMs to consumers. This dynamic routing improves successful processing rates, gives customers more payment options, and means failed transactions can be re-routed to the next acquirer, reducing lost sales.

Collectively, these various payment orchestration features and functionalities unlock the potential of APMs and provide gaming operators with the speed and flexibility to generate revenue at levels beyond ambition.

Partnering with the payment orchestration platform provider is key

By connecting directly to existing core or e-commerce systems, payment orchestration platform providers enable gaming operators to develop a growing payment ecosystem where the most suitable partners are easily selected and added. With online transactions optimized to support a full suite of APMs, opportunities for growth quickly begin to multiply.

Gaming operators can display their games or services across multiple digital channels knowing that consumers can pay using the APM they prefer. This allows more gamers to have fun with the games they want to play and allows game operators to target specific regions by demonstrating their ability to accept the most popular APM consumers in that region.

Payments orchestration-enabled APMs add agility and dynamism to today’s gaming operators that allow them – for the first time – to offer consumers the payment method they want, wherever they want. they find themselves. As APM adoption continues its strong upward trend, this capability will only become more critical for gaming operators looking to thrive globally.

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