In the fiercely competitive iGaming landscape, operators grapple with payment challenges that can drive away players. Declines and incomplete payments are unnecessarily rife within online betting, especially when it comes to first-time players. Operators can optimize their performance and accelerate revenue by working with a payments partner to build an end-to-end optimization strategy.
Why is optimizing payments so crucial for iGaming operators?
The long answer is the high-risk nature of the industry. In addition to regulatory complexities, payment method restrictions can have a detrimental effect on an operator’s bottom line. Strict regulations across various jurisdictions lead banks and other financial institutions to scrutinize transactions related to online gambling, fearing legal repercussions and non-compliance.The shorter answer: players want a smooth experience, or they’ll take their money elsewhere.A 2022 study by PayNearMe found that 52% of bettors in the U.S. have had issues with declined payments when signing up for new iGaming apps. In practice, the statistic has a concerning outcome: 17% of bettors who experienced payment trouble when signing up for new applications left and never came back.
How can optimizing payments accelerate iGaming revenue?
The payment experience begins when a player enters the website or app to check which deposit methods are available and ends long after they’ve hit the “pay” button.Transaction declines due to insufficient funds or abandonment due to lengthy deposit processes can result in the permanent loss of a customer. And without post-transaction analytical tools, operators can’t learn from past mistakes to ensure player retention in the future.In a world where transaction efficiency is not just desired but required, the choice of payment processor becomes crucial. Payment optimization done right takes a holistic approach, implementing a range of tools at each stage of the payment journey to improve the overall experience and ultimately increase approval rates and accelerate revenue. These stages include:
Stage 1: Intelligent Messaging
Pre-transaction optimization tools are designed with strategic foresight and integrate advanced rules to enrich each transaction message.Traditionally, for example, transactions initiated where there are insufficient funds are automatically declined, which is common in the iGaming industry. A partial approvals tool can identify these transactions before the issuer declines the deposit and offer the player the option to deposit a lower value that will be approved, instead of cancelling the transaction altogether.
Stage 2: Smart Routing
It’s not just the iGaming industry that experiences high rates of false declines. Smart routing can help by selecting the best path for each transaction based on success rates, thereby increasing approval rates. For example, Nuvei integrates with over 200 local acquirers across the globe, and every transaction is analyzed by a customizable routing engine to determine where to send the payment to ensure the greatest chance of acceptance.That’s not all. Smart transaction routing has several additional benefits, such as reducing fees for payment processing, speeding up processing times, and navigating complexities associated with international transactions.
Stage 3: Intelligent Re-Try
Intelligent Re-try tools can solve issues with high transaction declines and low conversion rates.For example, a decline recovery tool automatically resubmits declined transactions using custom rules tailored to each business. Empowered by insightful analytics, this technology can help capture every possible transaction for ultimate conversion success.
Stage 4: Monitoring and Control
Analytics tools such as real-time reports, processing comparisons, and case management are pivotal in enabling iGaming operators to identify opportunities for increasing revenue and minimizing lost sales. By providing instant insights into player behaviors, operators can tailor their deposit and withdrawal processes more effectively, enhancing player engagement and retention. Additionally, effective case management not only ensures efficient dispute resolution and reduced chargebacks, but also bolsters customer satisfaction and loyalty. Through these methods, iGaming operators can adapt swiftly to market changes, manage risks better, and ensure regulatory compliance, thereby securing a competitive edge in the dynamic online gaming industry.
A game-changing solution for iGaming
In summary, optimizing payments is critical for iGaming operators. A holistic approach to payment optimization can offer a game-changing solution to maximize player conversions and ensure a seamless payment journey from start to finish. Online betting is a high-risk, highly regulated industry, but revenue doesn’t have to suffer as a result. In a competitive landscape where players seek a smooth experience, the right payments partner can enable operators to grow their businesses through payment optimization.Joining ICE in London this February? Meet us at booth N5-430 to discover how our two decades of expertise in iGaming payments can transform your iGaming business’ revenue strategy.
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