Why is diversifying payments important for online casinos?
You might have noticed that the number of online casino gamers is actually on the rise, and operators want to have a good share of them. Part of the things these game providers are doing to capture audiences is to allow for multiple payment methods. In fact, Oliver von Quadt, the Head of Merchant Solutions of Asia Pacific and America at Deutsche Bank, confirms that unless a business wants to increase cart abandonment, it needs to embrace multiple payment methods, including local ones. Do you know that adding multiple payments can enhance your competitive edge?
But even if you are not really sure, then you have just arrived in the right place. Any successful business will agree that diversifying payments can really be beneficial. In fact, we’ve consulted with iGaming affiliate experts at Casino Online on this matter, and top casinos will often allow for transactions of almost all currencies and provide banking methods that align with customer preferences.
Therefore, in this article, we will be focusing on the benefits of multiple payments and uncover other fascinating insights.
Why do you need many payment options?
Improving customer experience
Convenience is actually one of the main reasons why more people gamble online. Talk of the possibility of accessing gaming products at any time, no traffic jams to deal with, no parking costs and so on. It is no wonder that Statista values this online market at $97.15bn and expects it to grow by a CAGR of 6.47% in the next few years. This finding perfectly aligns with a recent Future of Australia Retail report, which revealed that 72% of consumers shopped online because of their high preference for convenience.
But if they encountered a lengthy payment process, 32% would most likely jump ship. As if that were not enough, 9% might abandon their carts if they don’t find their preferred payment options. So, why would you want to be part of such a statistic just because you neglected diversifying payments? Whether you are a big payout casino operator that caters to high rollers or your platform allows for wagering of any amount, diversifying payment methods can really be a great way to go.
That way, you can always be sure to improve the customer experience at checkout, which might lead to better player satisfaction. And, of course, it follows that when players are more satisfied, retention rates can actually increase. According to Survey Sparrow, when you increase customer satisfaction by just 1%, it can increase the customer retention rate by up to 5%. But if customers have bad experiences, 95% will likely tell others about it – which might negatively affect your brand.
Broadening the customer base
You might really need to diversify payments, especially if you are targeting an international audience. This might include aligning with popular trends like cryptocurrencies and PayPal. Do you actually know that, for PayPal alone, more than 26% of gamers have already confirmed use? When it comes to crypto, the numbers also seem to show a rising trajectory. Actually, according to Tech Report, interest in Bitcoin casinos increased by about four times between 2019 and 2021. On top of that, Bitcoin accounted for more than seventy percent of all crypto-gambling transactions.
Only a business that does not want to stay relevant will ignore such statistics. It gets even worse when these operators support a very thin collection of currencies. You only introduce barriers to certain markets if customers have to convert their currencies before they can play. Because assuming you were a player, why would you want to pay more for converting currencies when you could participate in using other platforms that don’t need you to change currencies?
Plus, not every gamer will use the method others are using—every player has their own preferred payment method. For instance, a Business.com report revealed that 52% of Gen Ziers preferred debit cards. And if they don’t find their preferred method, 65% might abandon checkout, according to a survey by Bolt.com. By incorporating numerous methods, you can always be sure to cater to wider preferences, encouraging customer retention.
Some key considerations
Even though diversifying payment methods is important, there are things that you cannot afford to compromise, like security. In a world where threat actors unleash about 11.5 attacks per minute, who really wants to be a victim? Plus, you don’t want to spend a whole $4.35 million reviving your business just because of a cyber-attack that you could avoid. That is why online security remains important, even in payment methods.
Among the things that can get you started is implementing multifactor authentication. For example, 2FA can actually reduce the chances of exposure to automated attacks by 99.9%, Eftsure reports. To improve security further, you can also integrate AI-based technologies. The good thing with AI is that it can detect fraud in real time or any other suspicious activity, ensuring that you are always ahead of threat actors.
Parting words
Are you really serious about retaining more customers and staying ahead of your competitors? If you are, then multiple payment methods are something you really need to look into. Especially now that the gambling sector has become extremely competitive, you want to always ensure you are ahead of competitors.
And as you have seen, gamers can have varying preferences, which, you must, of course, meet, if you intend to remain relevant. Because if you do not align with customer needs, it might affect their satisfaction levels and encourage bounce rates.
