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Payments vital for iGaming player acquisition and retention – Paysafe research
Feb 01, 2023
Company research reveals U.S., Canadian, and U.K. online sports bettors prioritize their online payments experience when choosing where to play
London, U.K. – Quick and easy payouts trump all other factors for North American and U.K. online sports bettors when selecting a sportsbook, according to the latest All the ways players pay research from leading payments platform Paysafe (NYSE: PSFE). Released today, the report also reveals the crucial role of the payments experience in player retention as well as sports bettors’ rising interest in digital wallets and eCash.
Surveying more than 2,000 online sports bettors in six U.S. states (Iowa, Louisiana, Michigan, New Jersey, New York, and Pennsylvania), the Canadian province of Ontario, and the U.K., in November 2022, the research found that quick and easy payouts were prioritized by 36% of players when choosing a sportsbook. They considered payouts more important than brand trust (34%), odds, and promotions (28% for both). Availability of preferred payment methods was a factor for 27% of bettors and prioritized over a sportsbook’s sports markets and team sponsorships (11% for both).
Frictionless payouts are even more of a factor in sportsbook selection for players in Michigan (43%), whose market launched in January 2021, and the U.K. (39%), with its iGaming industry dating back 20+ years. By contrast, in Ontario, whose expanded market launched in April, players consider brand trust paramount (prioritized by 39%), though payouts were the second most important factor (35%).
The payment experience is just as vital for player retention, with 75% of sports bettors citing this as an important factor for why they remain with a brand. Payments appear particularly crucial for customer stickiness in New York, with 85% of players in the year-old iGaming market giving this consideration.
Players’ payment preferences continue to diversify, though the traditional payment method of debit cards dominates wagering (preferred by 49% of bettors). The U.K. and Iowa gambling regulators’ bans on credit cards for iGaming have likely contributed to this trend, with debit card preferences rising to 59% in both markets. Despite these two markets’ restrictions, credit cards were a payment preference of 25% of all players and are the go-to payment method for New Yorkers (44%).
Overall, the alternative payment method (APM) of digital wallets is now more popular than credit cards, with 28% of all players preferring a wallet. This trends as high as 45% in Iowa, where credit cards are not permitted. Digital wallets’ popularity is strongest with more frequent or VIP bettors, with a wallet the top payment method for players wagering 5-7 times a week alongside debit cards (both 41%). For bettors wagering 7+ times weekly, 34% prefer a wallet, exceeding mobile wallets (33%) and credit cards (24%).
Adoption of other APMs like eCash is also growing, with 16% of players preferring this payment method, trending higher in the U.S. (18%), where cash usage is still relatively robust, and in New York in particular (28%). Future demand also appears strong, with 53% of players saying they would bet online more frequently if they were able to use eCash products.
Operators appear to be largely addressing players’ concerns about payment security, with 59% more confident transacting than they were in 2021. Nonetheless, with 30% of players undecided and 11% less confident, there appears to be no room for complacency for the iGaming industry.
Zak Cutler, President of Global Gaming at Paysafe, commented: “Our latest research report emphasizes how critical it is for operators to develop a customer-friendly payments strategy as part of their model in order to both convert and retain new and existing players. In a highly competitive market, operators stand to gain a competitive edge if their cashiers feature a comprehensive suite of payment methods, including digital wallets, which support the conversion of VIP players, and eCash, which resonates with cash-focused consumers who are perhaps prioritizing sticking to a budget in their betting.”
About Paysafe’s 2023 ‘All the ways players pay’ iGaming research
Paysafe’s 2023 ‘All the ways players pay’ report was based on a survey conducted on behalf of Paysafe by Sapio Research among 2,002 consumers who have been involved in, or have a serious interest in, sports betting across six U.S. states (Iowa, Louisiana, Michigan, New Jersey, New York, and Pennsylvania), the Canadian province of Ontario, and the U.K. The interviews were conducted online by Sapio Research in November 2022 using an email invitation and an online survey.
The full research report can be downloaded here
Paysafe (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading payments platform with an extensive track record of serving merchants and consumers in the global entertainment sectors. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With over 20 years of online payment experience, an annualized transactional volume of over U.S. $120 billion in 2021, and approximately 3,500 employees located in 10+ countries, Paysafe connects businesses and consumers across 100 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com.
About Paysafe iGaming
Paysafe brings over two decades of specialized payments experience supporting the global iGaming and sports-betting sectors and provides operators with a comprehensive suite of traditional and alternative payment methods through a single, streamlined API integration. Paysafe is also a leader in digital and affiliate marketing technology and services for iGaming operators through its Income Access business unit.
Since the opening-up of the U.S. iGaming market in May 2018, Paysafe has consistently stated its ambitions to be the payments leader in the fast-growing sector, building on its leadership in Canada and Europe. As of February 1st, 2023, the company supports 75% of operators in the country with payments or marketing solutions across 25 jurisdictions. In Canada, Paysafe also has a leading position and partners with the majority of regulated iLottery and gaming brands.
For further information about Paysafe or to set up a media interview at ICE London between February 7th to 9th, 2023, please contact:
The Paysafe Press Office via PR@Paysafe.com