With a mix of opportunities and challenges on the horizon, the mobile and online gaming industry is continuing to evolve in response to an ever-changing regulatory environment. Other considerations include tech advancements in gaming and audiences with diverse, shifting expectations about their gaming experiences.
The continued consolidation among gaming industry companies is in response to the ongoing pressure to maintain a competitive advantage through spending considerable resources. To identify how to stand out in this complex gaming environment, many gaming companies are exploring ways to enhance the user experience, including payments. The payment component is critical to achieving a new level of seamless convenience.
That’s why Worldpay has put together a global gaming and payments report, which includes a survey of 16 countries for an international view of integrated payments within mobile and online gaming applications.
The Gaming Market’s Impact on You
U.S. gaming markets that are set to experience significant growth this year include state lottery gaming, casino and resort gaming, sports and eSports betting, and online gaming.
Each of these U.S. gaming markets are prime examples of creating more transactional velocity and brand affinity through omni-channel gaming offerings. In each of these gaming markets, players are looking at how to expand their physical, mobile, and online opportunities, while maintaining and growing their customers across all channels.
Within these gaming markets, payment trends are critical to watch as they reflect a larger transition to how consumers expect to pay. For example, eWallet will grow from 20 percent of gaming payments in 2018 to 33 percent in 2022. Meanwhile, credit cards will decrease from 34 percent of gaming payments in 2018 to 27 percent in 2022, while debit card gaming payments will remain the same at 19 percent now and through 2022.
Drivers Behind Changes in Gaming and Payments
The drivers of today’s gaming and payments trends are the same changes occurring in the larger payment landscape. Two of these drivers include the Now Economy and millennial audiences.
The Now Economy has completely changed customer expectations. When businesses began to enable the ability to spend money anytime, anywhere, consumers responded in droves to companies that could do business whenever and wherever the customer had an internet connection and money to spend. This immediacy for payments is critical in an industry like gaming where timing is everything when placing a bet, as well as receiving game winnings.
That means gaming operators need to have payment processes that are seamless by removing bad friction that slows transactions and could hurt the betting and the gaming experience. Even if these gaming customers want immediate payment capability, they don’t want to hedge their bets on an unsecured process that does not use tools like user authentication.
Second, the millennial demographic is driving many of the changes in the gaming industry. As they become a greater force as a gaming customer segment, millennials are applying the same expectations as they do to other customer experiences like with the retail environment. Those expectations involve personalized gaming experiences with payment options that align with the convenience level they receive in other aspects of their lives.
Growing up in a digital environment where information is readily accessible, millennials have amassed a large amount of knowledge related to anything they engage with, including gaming. In fact, they know more about odds, games, and gaming providers compared to other customer segments. If they think the odds aren’t in their favor with a particular game like slots, then they will opt for a more skills-based game with better odds. And, if a gaming provider doesn’t meet their expectations, millennial users will switch to one of many other available gaming apps and providers.
To address player expectations around personalization, a gaming provider has to know each player’s preference. With more players opting to use mobile applications, it’s critical to offer fast, secure payment options. With eWallets, a gaming provider can leverage multiple layers of security, such as encryption, tokenization, and device authentication, while keeping payments seamless
The Role of the Developer in Gaming and Payments
Developers can address these trends by making the payment process “disappear” while also offering these alternative payment methods like eWallets that players use in other aspects of their lives.
To offer a personalized experience, developers are an integral part of creating a payment acceptance strategy that includes numerous payment methods -- credit and debit cards, direct debit, and mobile wallets -- and many currencies to reach players beyond U.S. borders.
Also, developers can help enable fast payments and payouts. From placing a bet to collecting winnings, an exceptional gaming experience involves speed and access. For example, Visa Direct enables FastAccess Funding, which delivers real-time (under 30 minutes) payments compared to standard payout times of between two and five days.
With 59 percent of Mobile Payment Journey participants stating they would switch payment methods if it means a faster payout, we expect rapid player adoption of FastAccess Funding.
A New Era
Evolving player expectations, advancing technology, and changing regulations have led to a new era for payments and gaming. Players have unparalleled freedom and flexibility to play and pay in the most convenient way.
Offering a seamless payment process that integrates traditional and digital methods heightens the gaming experience and enhances customer loyalty. Worldpay will address the inevitable changes in gaming and payments as well as support your efforts to meet your customers’ expectations.
To learn more about the state of gaming and payment trends, download your copy of our new report here: https://www.worldpay.com/global/insight/articles/2019-02/global-gaming-payments-report.