We live in a world where information is at our fingertips 24/7, we can buy almost anything online and have it delivered to our homes within a day, if not hours. The iGaming world is no different; operators need to offer clients instant services and therefore instant payments.
Digital-first payments have increased in popularity even more during the Covid-19 pandemic, with the global adoption of technology accelerated extensively by three years of Covid, compared to the level of adoption between 2017-2019, according to data from McKinsey.
Customers must be able to make deposits and payouts quickly and easily on a gaming site, in the same way they can use digital payment services to make purchases elsewhere. It’s what we all expect. IGaming companies that have failed to keep pace with such accelerated adoption could face losing clients to more progressive businesses. But iGaming companies do not need to reinvent the wheel here.
Numerous payment service providers can offer this level of speed and client access via digital wallets. The difficulty is picking the right one for your business.
The growing use of digital wallets
The use of digital wallets has grown at pace. Two thirds of adults worldwide have now either made or received a digital payment, according to data from the World Bank. In Europe and Central Asia, about three quarters of adults use accounts to make or receive a digital payment, according to its Global Findex Database 2021.
So, digital wallets have become a typical way for people to pay for everything from vending machine purchases to making deposits on a gaming site.
Cards are still the primary payment method, but this is changing
Cards are still a hugely popular method of payment – within the EU alone, 49% of non-cash payments were made via card transactions in 2021, according to data from the European Bank. The highest share of card payments representing non-cash payments was in Portugal for 2021, at 72%.
Cards can have their limitations, though, especially when it comes to processing cross-border payments, as conversion rates drop significantly – while creating and maintaining an infrastructure of local acquirers and processors isn’t easy nor cheap.
Digital wallets simplify these transactions, as clients can move money at will; and merchants don’t need local processing but can rely on a global provider to remove the complexity of cross-border payments and widely international operations.
Safety
The safety of these transactions is also second to none. Biometric methods of securing digital wallets on mobile phones or tablets, such as fingerprint access or facial recognition, provide additional security measures that help customers feel more secure.
User validation – which can include the person using the digital wallet needing to upload a selfie to prove it is them – adds another layer of security.
The primary benefit of using a payment services provider that is agile and flexible is the speed with which payments can be made. Millennials, in particular, expect to make fast payments and are searching for instant gratification, so any delay will put them off from interacting. Digital wallets are easy and simple to use, and yet are one of the most secure methods of transacting online currently available. For iGaming operators, looking not just to simplify and shorten transaction times for existing customers but also to encourage new sign-ups, choosing a payment services partner that can provide digital wallets is an investment in their future.
Sara Rita is CCO of AstroPay, which offers a digital wallet solution, allowing users to make deposits and withdrawals directly and seamlessly from merchants’ sites with their preferred payment method and in the currency of their choice.
