The following is an article written and produced by Maxpay.
Reliance on payment processors and gateways in igaming started as part of a trend and transformed into a vital relationship that helped the industry to generate a modest $108.9bn in 2018 alone and by 2021, that figure will hit nearly $140bn. When it comes to technological advancement, igaming has gained massive growth in recent years.
Some claim that online igaming remains neglected by traditional banks – they are too slow to evolve and work with clients that make continuous micro-transactions, for example, and might still require showing up to a physical branch to open an account.
Where traditional banks see high-risk accounts, fintech companies see possibilities. For example, peer-to-peer payment providers like PayPal or Venmo completely dominated the market share with faster and more convenient service. The same happened to peer-to-peer lending and micro investing that cut off the middle man, aka brokerage firms with high fees.
A similar trend is evolving in traditional gaming. For instance, Epic decided not to distribute their Android Fortnite version through the usual Google Play channel, and launched Epic Games store. No more 30% fee from Google made the deal pretty sweet for developers and agents, so we expect more independent gaming venues to rise, looking for custom payment solutions.
As a famous TV show says, “The future is bright” for website operators. Modern fintech companies are a perfect match with merchants in the igaming sector with their arsenal of online tools. In this piece, Maxpay will address a few general trends igaming operators should look into for effective cooperation with payment service providers.
The company says operators are well aware of challenges like obtaining a license to get a better acquiring solution from banks, expanding market coverage, and constantly sprinting to include as many alternative payment methods as possible. Maxpay thinks that these obstacles might also distract business owners from more operational challenges with payment service providers.
– Flexible and customisable CRM
Before pouring traffic, it’s better to ensure every parameter that needs to be traced and measured can actually be traced. PSP solutions with tailored fit reports are more expensive but will save operators a fortune in the long run. A common area of interest would be chargeback control, including ratio reports and approval ratio. With mobile authorisation on the rise, it’s a common requirement for PSP to provide secure yet convenient solutions like Token Payments and biometrics authorisation for mobile users, who are responsible for around 70% of proceed transactions.
– KYC made smarter, not longer
One of the main goals for iGaming business owners is to design a gaming experience that would be fascinating and inviting for players to participate in. Being viewed mainly as a leisure activity, consumers have little to nothing patience for this industry. Average user is ready to spend up to ten minutes for identity check for retail or travel, but spare less than four minutes to sign up on a gambling platform. Unfortunately, this drowns more attention from fraudsters. Typical fraudulent schemes include account takeover, stolen cards, friendly fraud, foul play, fraudulent account creations, and money laundering. In fact, nearly 3 out of 10 accounts created via mobile devices are fraudulent, and one of the most prevalent problems is bonus abuse.
That’s where artificial intelligence, one of the most promising trends in payment processing, comes up front. For example, we teamed up with an anti-fraud solution platform Covery, that analyses over 5 million actions daily. That allowed us to control logins in the system and time gaps between them, including reg-to-play ratio. Using a trustchain network for emails, user IDs and other identifiers we restricted floodsters, spammers, and scammers from returning to the game.
Speaking about technology advancements. AI-based PSP models are good, but have you ever tried to have a dedicated account manager and risk manager on top of that? Consider this a necessity rather than a splurge, and we highly advise our merchants to use the benefit of human touch and appraisal in situations of uncertainty.
“We see that new markets like India, United States, and Singapore present new opportunities for expansion. More operators mean more competition to retain players with a superior experience. This includes seamless and secure payment processing with an optimised KYC process. ‘Mobile gaming registration and deposit abandonment’ study says that around 24% of players drop out registration due to unnecessary friction. I highly recommend operators start tuning sign-up process before adding another design solution,” says Maxpay’s CEO, Artem Tymoshenko