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PAYMENT ORCHESTRATION Mark Patrick, Global Head of Payments, CellPoint Digital, argues that the future of iGaming payments is local have two options when building out their payments ecosystem. Those brands looking to transact across different countries can work with an international PSP for all their acquiring needs. This approach has positive and negative sides. It can help reduce the time and effort needed to manage a complex payments ecosystem, but likely incurs high costs in the form of sub-optimal transaction rates. In addition, this doesn’t allow for any back-up options in the event of failed payments. Working with a single PSP also limits the payment methods and currencies Mark Patrick the merchant can offer, creating friction for the end customer. Another option is for merchants to build out Merchants are adapting to a customer journey their own payments ecosystem – comprised that has changed forever, especially those of various PSPs – in-house. Recent figures within the global iGaming market which suggest that over half (57%) are already continues to experience unparalleled growth; working with more than one processor. largely accelerated by casinos and major sports Doing so allows the merchant to create venues forced to shut down during the pandemic. multiple relationships with several PSPs The online gambling market is expecting annual ‘on-the-ground’ in their country of choice, growth of 12% from 2021-2026, with online protecting them to a certain degree from revenue increases of 135% in a booming payment rejection, and offering some element US market. New Jersey is set to become the of control over transaction costs. Manually first state to hit $1bn in annual iGaming developing and maintaining a complex, revenue in 2021. international payments ecosystem in-house, With this, the iGaming industry is presented however, is extremely time-consuming. with an unmissable opportunity to scale Perhaps more damaging is the fact that it cross-border. To effectively do so will mean can cause severe delays for agile merchants building relationships with – and serving looking to move into new markets. – customers in different territories. This comes with challenges. Typically, these customers GOING LOCAL TO GO GLOBAL have legacy payment systems only designed As a rule, customers want to pay in their for domestic use, or they find themselves local currency, using a familiar method, both faced with the expensive rates demanded of which change on a country-by-country by international Payment Service Providers basis. But partnering with local acquirers (PSPs). With that in mind, how can iGaming and PSPs allows merchants to plug into the companies scale internationally with a flexible local ecosystem, not only offering preferred payments ecosystem to match? The answer, currencies and payment methods, but also surprisingly, might lie in going local. utilising the experience of domestic partners to help enhance their payments journey. MECHANISMS TO PAY CROSS-BORDER When it comes to the future of iGaming, IGaming companies looking to expand integrating several local acquirers instead of into new countries and territories typically one main international player may provide
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the best outcome. It means merchants are empowered to protect their bottom line, and deliver a frictionless payment experience for their customers. UNLOCKING LOCAL PARTNERSHIPS WITH PAYMENT ORCHESTRATION Payment Orchestration Platforms allow iGaming companies to master complex payment needs, while keeping things simple. By integrating directly with local acquirers and PSPs, Payment Orchestration Platforms enable merchants to quickly and efficiently roll-out complicated payment ecosystems in new markets. This can be done at a fraction of the time and cost of integrating directly. The platform can then orchestrate every transaction end-to-end, resulting in a fluid payment journey. In practice, this means allowing customers to pay how they want, in the currency of their choice, regardless of their location. For merchants, payment orchestration can simplify back-end processes, reduce operational costs and protect them from failed payments, as well as the negative customer experiences that go with them. Furthermore, having access to multiple PSPs means any declined transaction will be re-routed to the next acquirer, ultimately reducing failed transactions and the cart abandonments that tend to follow. INTERNATIONAL OPPORTUNITY, LOCAL STRATEGY The opportunity for iGaming companies to scale internationally has never been greater. To protect conversions and build long-lasting relationships with consumers in new markets, they must prioritise the payments experience. Through payment orchestration, merchants can quickly integrate with several local providers to allow customers to pay how they want. Only by embracing a robust local strategy will merchants be able to offer a truly seamless global payments experience.
