Writing for CasinoBeats, Martyn Hannah, Founder and Managing Director of Comparasino, emphasised how important payments are to players and how they can be a huge driver of acquisition and retention
Martyn Hannah: Bonuses are often seen as the primary acquisition tool for online casinos and, in the past, brands have been incredibly generous when it comes to the welcome packages they offer to new players.
But take a quick look at the casinos listed on Comparasino and you’ll see that operators have really scaled back their promotions of late.
Where once players would be offered 200 per cent or even 300 per cent deposit matches and hundreds of free spins, the majority of brands now offer a standard 100 per cent up to £100 (or less) and a handful of free spins.
There are plenty of reasons for this – bonus abuse, high player churn, squeezed margins, etc – but it is hurting acquisition, for sure.
The good news is that bonuses are not the only factor players consider when deciding where to play, with the payment methods available being just as important for some.
That’s why comparison sites such as Comparasino have dedicated payments pages for PayPal casinos, Neteller casinos, Apple Pay casinos and so on.
But another trend we have seen is that operators are streamlining their payment gateways, reducing the range of methods available to players, something we see as a missed acquisition opportunity.
Just a couple of years ago, the majority of gateways would offer methods such as Pay by Mobile and in particular Boku and Payforit – today, it’s hard to find brands that do have these in the cashier.
Even longstanding methods such as Skrill and Neteller are not always available, whereas a few years ago they were just as prevalent as Visa and Mastercard.
There is growing demand for mobile wallets such as Apple Pay, but again this is not available at the vast majority of online casinos in the UK – although this is likely due to the cost of offering it.
Some operators do understand the importance of payments when it comes to acquisition and retention – 888 has recently joined forces with Nuvei to improve its cashier.
It must be remembered that outside of the gambling industry, the way consumers pay is changing – as are expectations of what a good transaction experience looks like.
Think about your own expectations when making a purchase. Perhaps like me you no longer carry cash, or maybe even a wallet or purse as you prefer to use a mobile wallet instead.
The vast majority of us expect transactions to be instantaneous and to be undertaken with the highest levels of security in place.
Why then do so few online casinos provide a seamless payments experience to their players?
Sure, deposits are often instant – the casino wants their money, of course – but withdrawals usually take days and, in some cases, more than a week to process and for the player to receive their payout.
Search volumes for fast withdrawal casinos are high which shows just how important that aspect of online casino play is to consumers.
It also explains the rise in the use of digital and mobile wallets, which often provide faster payouts compared to debit cards and bank transfers.
One of the worst crimes we see is players being charged to make deposits and withdrawals. This really is unacceptable, and this is why we always highlight the fees a casino imposes.
The security of player funds is another area where consumers are let down. The majority of brands keep player funds in a separate account, as required by the Gambling Commission.
But read the small print and these funds are not protected in the event the operator goes bust. In a market where trust is paramount, this does nothing to reassure players the casino is reputable.
These are all things that players consider when deciding if to sign up for an online casino or not.
Few brands have really nailed the payment experience offered to players, but with a few small tweaks they will be able to offer a seamless deposit/withdrawal process and, as a result, improve acquisition and retention.
How should they do this? Based on what our members are searching for, I’d suggest the following.
1 – Add more payment options, especially mobile and digital wallets.
2 – Ensure the payments journey is smooth and seamless and if areas of friction do occur (documents needing to be verified, etc) explain to players why.
3 – Speed up payouts. Not only will this allow you to acquire more players but also better retain those already engaged with your brand.
4 – If possible, provide better protection for player funds.
By shifting focus away from bonuses and to payments, operators will be able to acquire customers of a much higher quality.
Sure, the search volume for PayPal casinos is much lower than free spins no deposit bonuses, but the quality of the player coming through for the former is much better than the latter.
What’s more, in a market where it’s becoming increasingly difficult to stand out through bonuses alone, payments can be a serious differentiator.
