- Oct 03, 2023
iGaming: Winning players trust through payment security
Offering a wide range of secure and convenient payment methods can help iGaming operators enhance the wagering experience, boost trust and improve retention
Trust is fundamental to any transactional relationship and in iGaming this is no exception. Players are understandably keen to make sure placing an online bet is safe and that their winnings are paid out swiftly.
The flipside is that, if security procedures add too much friction to the wagering process, it negatively impacts the overall betting experience.
So how can iGaming operators maintain the highest levels of payment security and strengthen players' trust, while still keeping the wagering experience seamless?
iGaming customers who trust more, spend more
For iGaming operators, it’s crucial that players trust the security of their payment process.
We asked 14,500 consumers in the US, Canada, the UK, and countries across Europe and Latin America* for their thoughts on iGaming payments as part of our latest Lost in Transaction research. 67% of respondents who place online bets say their level of trust in the payment methods available influences how much they spend with a particular operator.
In fact, trust is a determining factor when players are deciding whether to place bets with a given operator at all.
In our 2023 All the Ways Players Pay survey of 2,002 American, Canadian, and UK consumers involved or seriously interested in online sports betting, 40% say their level of trust in an operator significantly influenced whether they placed a bet.
Crucially, 51% say security concerns would stop them completing a payment. And 69% are unlikely to place a bet with an operator again if they had a bad experience at the cashier.
The upshot is that iGaming operators, like online merchants in many industries, have little room for error. To complicate matters further, operators must balance security with speed and convenience, particularly when it comes to paying out winnings.
Our 2023 iGaming research found that 50% of players prioritise quick and easy payouts when choosing where to place a bet.
The balance between payment security and convenience
So how are iGaming operators doing when it comes to balancing payment security and speed? Our research suggests that, while they're getting many things right, there's more that can be done.
On the positive side, 61% of Lost in Transaction respondents who place online bets think the process is safe.
Similarly, 61% respondents to our All the Ways Players Pay research report are satisfied with their iGaming brand's payment experience, with 59% feeling more confident that payments are secure than they did 12 months previously.
But our research also shows that the current mix of payment methods available to players doesn't always meet their expectations.
When we asked Lost in Transaction respondents how they placed online bets in the previous month, the majority — 52% — used a debit card, while 33% used a credit card.
Yet, 68% of people would prefer not to reveal any financial details when they place online bets, so having alternatives available is also key.
Boosting security, speed, and trust through more choice at the cashier
While security and speed might seem like they're unavoidably at odds, it's possible for iGaming operators to strike a better balance between the two priorities, without making major trade-offs.
To do so, they need to offer players choice at a brand’s cashier. The key is to offer alternative payment methods (APMs) that are frictionless and secure as additions to the payment mix.
There’s no need to share any financial details with the iGaming operator. Digital wallets store tokenized versions of financial details in an encrypted format. eCash, on the other hand, doesn't require any financial details. When the player chooses it as their payment option at an iGaming brand’s cashier, they complete the payment by entering a 16-digit code from a prepaid voucher or create a barcode to complete the payment offline at their convenience.
Friction is minimal. Logging on to a digital wallet and approving a payment is extremely simple, and with a network of 700,000 conveniently-located points of sale in over 50 countries, paying with eCash is equally straightforward.
Arguably most significantly, large numbers of players already trust these payment methods. 57% of Lost in Transaction respondents who place online bets think digital wallets are the safest way to do so, and 65% think they're the fastest way to receive their winnings. There is positive sentiment around eCash too, with 50% thinking it's the safest way to place bets, and 52% thinking it's the most convenient.
iGaming operators can grab players' attention at the cashier
Competition in the iGaming sector is heating up, and an iGaming brand or online sportsbook’s cashier is a key battleground.
Variety, good odds, and thrilling gameplay are no longer enough. To feel comfortable placing bets, players need to trust the operator. And that means more secure, convenient payments and lightning-fast payouts.
The good news is that many operators are already on the right track. By giving players more options at the cashier, they can enhance their value proposition and turn the payment process into a competitive advantage.
Want more insights into consumers’ continually evolving attitudes and payment preferences? Download the full Lost In Transaction: Consumer Payment Trends 2023 and 2023 All the Ways Players Pay reports.
*Paysafe’s 2023 Lost in Transaction report surveyed 14,500 consumers in the UK, US, Canada, Italy, Germany, Austria, Bulgaria, Peru, Chile, Brazil, Mexico, Colombia, Argentina and Ecuador.