WHAT IMPACTS CUSTOMER LOYALTY FROM A PAYMENTS PERSPECTIVE

Victor Newsom: It is based on customer experience – convenience and perceived value. If I’m a customer, is there a value of me using loyalty points for spending and affinity, credit or debit, or some other debit product? Is there perceived value in going through a particular app so that I can get my comps, discounts and rewards? Did the customer have to go through a lot of hoops to enroll, download or set up that capability? As you remove friction on the front end, and as you increase the perceived value for better benefits in the back end, you have a compelling customer loyalty and engagement story. “Embedded payments” or “invisible payments,” not only remove friction from the enrollment process or opt-in process, but remove friction from the execution payments. Everi can help operators dynamically adapt to their needs, situation, and points of interaction – be the mechanics underneath the hood.

Mandi Hart: Several industry studies have shown that fast cash outs is the top reason a customer chooses a sportsbook.

We’ve done a great job as an industry in improving the deposit options – with debit card acceptance around 95% now, up from around 60% in 2018 when PASPA overturned. Until recently, cash outs have lagged behind with some operators taking a slow approach that could result in withdrawals taking up to five days. Sightline’s Play+ solution was designed for facilitating quick withdrawals, and you are finally seeing some additional innovation around real-time payments to enable those fast cash outs. As fast cash outs become standard operating procedure, you will see more innovation in leveraging payments as a loyalty tool. Just look at companies like Target, Walmart, and Starbucks. This strategy could have massive implications for gaming, as an omnichannel experience will allow patrons to move seamlessly from a table, to valet, to checkout and everything in between.

John Skorick: Offering the most common and popular payment methods in the customer’s respective country. The US is very simple. It’s almost all credit cards. But international operators need to offer the APMs (alternative payment methods) of choice in each country they wish to operate in, as customers have very specific preferences when it comes to ease of payment and payment methods. When in doubt, make it easy to pay.

Anne Hay: I think the biggest current challenge is navigating the rapidly changing landscape of iCasino and online sports betting. This includes emerging new audiences and territories, constant regulatory changes and frequent updates to payment technology. We always have to be aware of the shifting demographics of online players and their payment preferences. We need to innovate quickly to be able to cater to those preferences to capture that market for our operators. Then on the back end, we must remain compliant with all of the new states legalizing, so that our customers can go live quickly. It’s all about speed and adaptability right now, and we want to provide that for our partners and clients.

John Skorick: Regulations. Gaming demand is global and each country, or state/municipality, has different regulations and these regulations are constantly changing. We saw the fallout in India last year and many operators are still recovering from it. Proposed changes are happening in Europe, indecision in the US; it’s a constant challenge to keep up with.

Victor Newsom: There’s a convergence of challenges that span a few categories. We have the regulatory landscape that needs to continue to evolve in the face of emerging technologies, entrenched infrastructure and organizational mindset with operators, and converging customer journeys and use cases across channels and legal entities. Conversations around a “super app,” where you can game online, do sports wagering, pay for your hotel, attend an event, etc. are increasingly normalized. This leads to pressure to create a seamless experience. As a payments company, if you’re going to be part of the vision for what the industry could do, you have to work harder in the execution, the delivery process and in solving the technology and regulatory challenges. In the face of those challenges, Everi has continued to invest heavily in our people, licensing, and technologies, so that we can provide bridged omni-channel, multi-segment, tailored capabilities that encourage guests to have differentiated experiences.

Mandi Hart: The patchwork quilt of compliance and regulatory obligations, which are only growing more complex as online sports betting grows along with new jurisdictions. There is really no one-size-fitsall approach to payments from the mix of funding options to the licensing categories. Fortunately, Sightline has a tremendous team that understands the intersection of gaming and payments, allowing us to stay on top of these shifting trends and maintain a culture that understands these differences in order to deliver for our clients. This year we’ve worked with several regulatory bodies on their payments regulations to ensure that companies can simply remain compliant with them, like what we saw with proposals to prohibit joint bank accounts from being used for funding.

Christopher Justice: One of the most demanding aspects of our work has been keeping up with consumer expectations. Things like cashless transactions and e-commerce have dramatically shifted expectations, and we see it as our goal to bring that same payment experience that patrons have come to expect to the gaming industry. Pavilion’s e-check network, VIP Preferred, allows casino patrons to connect to more than 400 in-person and online gaming institutions, enabling the kind of seamless payments that patrons expect.

Anne Hay: Macro conditions need to improve and regulations need to be ironed out before players and regulators are comfortable with crypto (specifically Bitcoin) being used in sports betting and iGaming. On the other hand, alternative payment methods like digital wallets are incredibly in-demand. The most preferred payment method from our research was PayPal, with 64% of players stating its importance. Venmo was also a preferred payment method for 48% of survey respondents. Customers want the frictionless payment experience that comes with digital wallet apps already downloaded on their devices—plus, these are apps that they already trust.

John Skorick: APMs specific to the customer country are critical for acceptance rates and customer satisfaction. I’m in favor of offering customers as many options as reasonably possible. I believe the majority of people buy crypto for investment, not spending, but with the ability for operators to accept and exchange for fiat in real-time, it is a solid and noteworthy option.