iGaming payments driving player retention strategies
Learn how iGaming payments boost player retention strategies, keeping high-value players loyal with fast, secure, and seamless transactions. Zak Cutler, Paysafe’s President of Global Gaming, explores the fundamental importance of payments in a robust player retention strategy.
President Global Gaming, Paysafe
The importance of player retention in iGaming
Online sportsbooks put a lot of focus on customer acquisition, often gearing their marketing activities around driving new customer sign-ups. Advertising campaigns, sponsorships, brand ambassadors,and bonuses all attract the big marketing bucks as brands battle for the lion’s share of the market.
However, estimates show that acquiring new players can cost up to seven times as much and be far less profitable than retaining existing customers. So,while acquisition is important, player retention is also crucial for long-term success,and balancing player acquisition with engagement strategies is key.
The competitive nature of the iGaming industry often leads to high customer churn, as players are enticed by attractive bonuses offered by competing sportsbook brands, so efforts toretainplayers are key. But retention strategiesshouldn’trely solely onbonuses. They should be comprehensive and cover all aspects of the online sports betting experience.
Paymentsare a critical component for both player acquisition and retention, and their potential impact is often underestimated by operators. If players are not satisfied with the payment experience during transactions, they likely will not make a deposit and may even stop wagering with a brand altogether.
The good news is that according to our All the Ways Players Pay report, six out of ten sports bettors surveyed in the US, UK, and Canada’s Ontario markets were satisfied with the payment experience they received. Just 14% of players were firmly dissatisfied but given the highly competitive nature of the online gambling sector,there is no room for complacency. Only a quarter (26%) are strongly satisfied with their payment experience, so there is room for improvement.
Behavior patterns of high-value iGaming players
High-value or VIP players typically represent a significant proportion of revenues for iGaming platforms, so they’re ideal targets for player retention strategies. High-value players exhibit measurable behaviors, such as longer session durations and frequent return visits, and their deposits and payouts tend to follow a consistent pattern. As frequent users, they also respond well to personalization and are likely to engage with offers, promotions, or rewards.
What iGaming players look for when making deposits and withdrawals
So, what are the steps that online sportsbook operators need to take to ensure they provide a payment journey that meets the expectations of both existing and new customers?
Based on our Survey, the speed of deposits and withdrawals came out as the mostimportant factorfor players when choosing with which brand to place a bet. Over a third (36%) of online sports bettors think about the speed of a transaction when making a deposit, closely followed by security (35%),and then the ease ofactually makingthe deposit or withdrawal (32%). This tells us that operators must guarantee that payments are secure, swift, and reliable to ensure players have complete confidence in the transaction process.
Furthermore, the importance of fast payouts should not be ignored, as it is essential for operators to ensure that their payout processes are efficient and meet the expectations of their players.It appears that current player expectations are not being met. When it comes to withdrawals, four out of ten global players say payouts should be instant or near instant. Fourteen percent (14%)expect to wait half a day, and 21% no longer than one day. All in all, 73% of online sports bettors expect same-day payouts, but in many instances, this time frame is not being met.
What constitutes a negative payment experience?
Slow payouts can be a major contributor to a player’s dissatisfaction with an online sportsbook, but that’s not the only factor that will drive down player satisfaction levels and result in them leaving a brand to bet elsewhere. According to our All theWays Players Payr esearch, the main reasons why a player decides not to go ahead with a deposit were (players were able to select up to three):
-
Concerns about the security of the transaction – 51%
-
Their preferred payment method not being available – 46%
-
Being required to provide too much financial information – 46%
-
Their deposit being declined – 37%
-
A limit placed on the deposit – 30%
A poor payment experience can have a lasting impact on a sportsbook’s brand. This is evidenced by the fact that three-quarters of global players agree that the payment experience they receive is an important factor in their decision to continue to wager with a specific online sportsbook, and seven out of ten say they are unlikely to return if the payment journey is not a smooth and seamless one.
Delivering the payment experience players want
To ensure that players receive the transaction experiences that they expect, and to ensure they keep wagering with a sportsbook, operators should offer a divers epayment stack. This means providing customers with a variety of payment options, including traditional methods such as debit cards and, in states where permitted, credit cards, as well as alternative payment methods (APMs) like digital wallets and online cash (eCash).
The broad popularity of these APMs islikelydue to their ability to offer players fast,secure transactions. For example, with the Skrill and Neteller digital wallets, a player’s financial details are never shared with the sportsbook. Payouts are instant, an important factor for players, as described above. This is, in part, the reason why digital wallet usage across global iGaming markets is growing. Nearly one-third of players surveyed across the US, UK,and Canada already usedigital wallets to deposit and withdraw at online sportsbooks, according to our research.
In summary, payments are the lifeblood of sportsbook brands, as they enable operators to acquire new customers, ensure players make their first deposit,and continue wagering with the same brand, knowing their information is secure and that the process is fast and seamless. It’s for this reason that a player’s payment journey should be considered a priority for any sportsbook brand, especially if they want to attract and retain customers at scale.
How Paysafe helps you deliver a seamless iGaming payment experience
Paysafe’spayment solutions for the iGaming industry help operators deliver fast, secure payments that improve player retention througha payment gateway designed to enhance the player experience. Paysafe is aone-stop payment shop offering a single point of integration that gives players access to an array of payment options, including cards, wallets, e-Cash, APMs, crypto, and more.
Learn more about Paysafe’s iGaming payment solutions.
FAQ
What is a high-value player?
A high-value player is a player who exhibits a particular set of behaviors, such as playing for longer sessions and returning for frequent repeat visits. Their deposits and payouts also follow predictable patterns, and they typically respond well to personalization when given the option.
Why should iGaming operators prioritize payments?
Payments are a key area in player retention strategies, with players citing payment speed, security, andease of depositing and withdrawing as important factors in choosing and staying withan iGaming platform. Players also are less likely to choose a platform if they have concerns about security or cannot use their preferred payment method.
This article contains general information, and its content should not be relied upon as legal, financial, transactional, or business advice, nor as instructional material. Neither Paysafe Limited (NYSE: PSFE), nor any of its subsidiaries or affiliates (collectively, “Paysafe”), endorses or makes any warranties regarding the accuracy or reliability of any opinion, information, or statement provided in this article. While Paysafe strives to ensure the accuracy of the information presented, no representation or warranty, express or implied, is made as to its completeness or accuracy. All content contained in or made available in this article is for educational, informational, and/or advertising purposes only. Paysafe supports responsible gambling.
