How can gambling operators encourage more players to pay and play?
Up to 15 percent increases in revenue estimated. Here’s how.
Did you know that the mobile payment method Direct Carrier Billing is not only a payment method but a growth driver and powerful conversion tool for gambling operators? Increased engagement, reduced basket abandonment through a simple one or two click processes capturing more first timers, all in a secure, trusted and safe environment for both operators and players. This sounds like a perfect but unrealistic environment, only achievable with substantive or radical changes, large expenditure and effort. Not quite.
Complement your payment methods and we’d place a safe bet you’ve reserved your place at the winning table.
You may currently be losing out due to payment struggles
If a player loses interest, he will eventually land in your churn group.
41 percent of players consider the ease of deposits to be one of the most important factors when deciding to try a new betting platform.
21 percent of punters don’t convert if the check out process is too long and complicated.
The user’s average retention period on an operator’s website is approximately seven seconds. You can heavily influence what happens within these seven seconds – the user can look for his login details, search for his card in his wallet, or to press a button and confirm a payment.
Did you know that in Germany for example out of population of 83 million
- only 40 million people own a credit card
- only 23 million people have a PayPal account
- but 140 million mobile connections were registered in 2019?
At the same time 95 percent of online merchants offer PayPal in Germany as a payment option, though only 50 percent of respondents of a Statista survey stated such as their preferred payment method. Taking a glimpse across the European landscape a similar situation can be observed in many countries. Offering a nonexistent or unpopular payment doesn’t support a gambling merchants’ quest in optimizing conversion. Unlike offering a payment method that everybody holds in hand, completing a payment in just one or two clicks.
Europe’s gamers are increasingly looking to play on mobile and, more presciently, pay on mobile.
Benefit from the mobile nature of consumers behavior
The daily time mobile phone users spent using their devices grew from 152 minutes in 2014 to 215 minutes in 2018, and is expected to grow to 234 minutes by 2021. Needless to say, mobile gambling is exploding. As many as 70 percent of users under the age of 40 say they intend to use mobile payment once it is made available.
Where do people gamble?
The white paper states that 25 percent are gambling at work, 23 percent on the way to and from work, while 15 percent in the pub.
iGaming operators need to be where the punters are and offer the payment tools that they want to use.
Mobile punters – mobile payment
55 percent of online consumers believe that mobile payments make buying less complicated.
The advantage of DCB is that it offers a fast way to pay with an extremely high level of security.
Furthermore, it is a payment method that everybody holds in hand.
Direct Carrier Billing [DCB] or carrier billing – is a mobile payment solution that enables customer to use their phone bill to “pay and play”.
This billing tool is available worldwide, to anyone with a mobile, smart or feature phone, a tablet or even a smart TV. Backed by the EU’s Payment Services Directive (PSD2), it comes with in-built protection for both players and operators – players being allowed to spend around € 50 per day with a monthly limit of € 300. And the data suggests that it needs to be on everyone’s agenda – right now:
- 70 percent of 1st time users convert with carrier billing compare to 12 percent with credit card
- 70 percent of users under the 40 would use Mobile Payment if available
- 45 percent of all online gamblers use mobile to generating € 50 bn in spending
- 15 percent increase in revenue by offering mobile carrier billing
Remember, the money that moves from the mobile phone company to the gambling operator is protected by the mobile network operator (MNO). For gambling operators, DCB also represents a secure and guaranteed way to receive money and, whilst it is more costly per transaction (compared with other payment methods), the ease of use significantly increases sign ups of more new players. Many would therefore argue that a large proportion of the transaction cost should effectively be seen as highly attractive “cost of acquisition” and therefore be included as a function of marketing.
It is though important to state that we don’t suggest replacing current payment methods with Direct Carrier Billing but compliment traditional payment methods but by extending your payment offering you cater to all players of all character and needs. Different situations call for different solutions. Whilst a player will most probably be fine with whipping out his credit card watching a match on the couch of his home, he might not feel as comfortable doing so sitting in a train in rush hours or after his third pint at the pub. The latter situations for example calls for one or two click payment without the need of entering any additional, especially sensitive, data. iGaming operators need to be where the punters are and offering the payment tools that they want to use.
Hungry as a hunter to increase your revenue?
Telemedia Myth Buster (Telemedia Magazine), in association with DIMOCO Carrier Billing, Melodi Global Mobile Solutions and with a supporting webinar in partnership with iGB, produced the first in this series of market-focused white papers “Unravelling Carrier Billing for iGaming”.
The white paper includes a snapshot of Europe’s mobile gambling market, the payment landscape in mobile gambling, an overview of payment methods including an introduction of carrier billing, in addition to case studies and the regulatory, security and compliance angle of the payment method.
“There are many factors that inhibit the wholehearted adoption of a mobile payment strategy. This series of white papers speaks directly to decision makers (in the industry sectors) with the most to gain – in their own language and with no technical jargon”, says Jarvis Todd, CEO & Publisher, Telemedia Myth Buster (Telemedia Magazine).