As customers increasingly demand fast, safe and secure withdrawals Simon Dorsen, director of gaming at Okto Group, believes the next 12 months could well see a further shift in a digital age where operators reap the rewards of the latest payments technology.
Lauding a great year for technology during 2019, particularly for the mobile gaming sector, Dorsen stresses that the “wallet revolution is already mainstream” as a reminder is sent to operators of the importance of paying attention to regulatory hurdles.
Making a bold prediction to CasinoBeats regarding the year ahead he stated: “I’m going to go big here and say that 2020 is the year that cash is no longer king. As it stands, the cost of carrying cash for gaming operators is increasing significantly, and many are having to ‘float’ a large portion of cash to regular players that keep regularly coming back within a short period. This needs to change.
“As ever, regulation will be where the buck starts and stops”
“For operators, the cash ‘float’ isn’t sustainable, and for players, elongated withdrawal times in a digital age are proving to be a significant pain point. Today’s demographic wants the freedom to receive their money fast and in a safe, secure way that allows them to spend it how and when they choose.
“If operators want to stay ahead in 2020, they need to work with licensed, innovative companies that understand both gaming and fintech, and can deliver on the latest in payments technology. I predict that operators that adapt first and begin to embrace the cashless revolution now will be reaping the rewards come end of the year.”
Continuing to look ahead to the next 12 months, Dorsen, who spoke at last year’s Payment Expert Forum at Olympia London on betting’s future relationship with fintech, suggests different licenses are required to limit the movement of funds between retail and online.
“As ever, regulation will be where the buck starts and stops, and the importance of paying attention to regulatory hurdles in 2020 should never be underestimated by operators,” he says. “Europe in particular is a true patchwork of regulatory regimes. Separate licenses for online and retail that limit movement of funds between the channels are essential.
“This is none more so the case than when it comes to AML and KYC procedures. Gaming operators who are scrambling to solve these solutions themselves would do well to invite an expert to provide the answer for them. By bringing in an already certified solution, you’re good to go across multiple markets with a ready-made provider that already has the required regulatory approval.
“With the relevant licences, PSPs are well positioned to integrate onboarding and identity checks into the overall payments process, leveraging the best technology and security software available. Choosing the right partner can help operators optimise the identification process in a compliant and cost-effective manner that actually boosts customer engagement and helps establish a trusting relationship from the get-go.”
“The wallet revolution is already mainstream”
To conclude, Dorsen takes a look back to 2019 and a period which sees technological advancements progress at an even quicker rate than adoption: “It’s been a great year for new technology, especially when it comes to mobile gaming. The industry has developed in leaps and bounds over the past year, and we’re seeing plenty of new opportunities emerge for us as digital wallet tech continues to go mainstream.
“The wallet revolution is already mainstream, as we’ve seen with Revolut and Apple Pay achieving high adoption. Gaming and betting operators are becoming increasingly interested in understanding how they can leverage our OKTO.WALLET to streamline operations and minimise costs.
“When it comes to the customer, we’re seeing a rapid uptake. Mobile transactions already account for 54 per cent of digital payments in Europe and are growing globally by 10 per cent. With technology advancing at an even quicker pace than adoption, payment solutions are offering a whole new level of convenience for customers dedicated to reducing friction in gaming transactions.
“Fast payouts build brand trust with the player, driving repeat betting, visitation and deposit ratios, and I’m looking forward to seeing operators continuing to capitalise on that in 2020.”