Digital wallets to become preferred payment method for online gaming

Global financial technology provider FIS is predicting that digital wallets will be the preferred method of payment for online gambling activities globally in three years, as further major legislative changes come to the fore.

According to FIS’ 2019 edition of the Global Gaming Payments Report, with data contributed from its recently acquired Worldpay business, over 35 percent of online gaming payments were made through digital wallets last year.

Driven by the prevalence of smartphones and availability of mobile applications to enable online gamers to embrace real-time payments, FIS is anticipating the trend to soar by 2022 as digital wallets become the preferred method worldwide.

The firm also stresses that as strong customer authentication becomes a major legislative drive, an increase demand and adoption of digital wallets such as Apple Pay and Google Pay, which satisfy SCA regulatory requirements, is to be seen.

Furthermore, FIS predicts that a ten per cent decline in card-based deposits will be felt across Europe by 2022, as several regions, such as France, Italy, Denmark and Germany, see a strong uptake of alternative payment methods

Steffan Jones, VP of commercial development, gaming and trading at FIS, explained: “The increasing draw of mobile gaming has made instant access to winnings essential for a complete player experience. 

“Quick payouts have now become a reality via FastAccess funding enabled by Visa Direct. This year is sure to see further roll-out of this service across Europe and adoption across the online gaming community.

“The upcoming implementation of SCA should also be a key priority for the gaming industry. With operators needing to be mindful that they are approving or declining the right payments at all times in a PSD2-compliant way without hampering the player experience. 

“Digital wallets, especially those that include an additional layer of biometric authentication such facial recognition or fingerprint, could be an alternative for players, and we expect to see increased take up of these payment methods within online gaming as a result.”