Online gaming

Online gambling applications seek competitive advantage

In March 2021, with the pandemic in its first full year of transforming consumer expectations for how they pay and get paid – including in the online gaming space and especially payments – Trent Striplin , Director of Customer Finance at FanDuel, told PYMNTS:

“Withdrawal speed has always been important to our customers. It’s the first thing we hear about, and one of our top priorities right now is to speed up customer withdrawals and get them out as quickly as possible.

Fast-forward 19 months, and now, as VP of Payments and Fraud at FanDuel competitor Caesars Digital, Striplin is emphasizing the speed of the Caesars Sportsbook app — and it’s making instant payments. part of the overall gaming experience.

Striplin and Drew Edwards, CEO of Ingo Money, told Karen Webster that instant payments improve customer satisfaction and can have a positive ripple effect by allowing dollars to continue flowing through the Caesars ecosystem. – on online and physical channels.

Online gaming apps allow customers to deposit funds instantly and use those funds to wager instantly, Striplin noted — and yet, historically, it can take a while for funds to return to their bank accounts. This is out of touch and inconsistent with consumer expectations that everything the payment method should evolve at the speed of the Internet.

See also: Here’s why instant payments are here to stay

“I personally can’t imagine making a lot of money and then being told [by the site], ‘OK, we’ll send you a check in a week.’ … It has to be a first digital experience,” remarked Edwards of Ingo Money.

Today, Edwards and Striplin announce that Caesars Sportsbook has selected Ingo Money to power instant card payments in the company’s Sportsbook app.

This new payment option offers near real-time savings, which – for around 97% of Sportsbook users – means around an hour to maintain compliance with a “range of regulatory, financial and accounting controls and frauds,” Striplin said.

“The speed of withdrawals is something very important to people in their experience with the Sportsbook.”

Consumers expect instant payments

The clamor for faster receipt of gambling payouts is there. Data, as reported in the PYMNTS Disbursement Satisfaction Report, confirms this sentiment, where demand for instant cash payments, including lottery and gaming winnings, increased by 6.3% in 2018. to 20.8% in 2022.

As with any new service, decisions on how to market, reach consumers, and entice them to try what’s on offer must be made in the context of how any new capability will be monetized.

For Striplin and Caesars Sportsbook, the company made a conscious decision not to pass costs on to customers. Striplin is betting that an improved customer experience is likely to drive repeat business — in other words, consumers won’t just grab the cash and run.

There’s also the rigidity fostered by Caesars rewards programs, where credits are earned through the app and in person based on casino games, hotel, restaurants and entertainment activities. Winning big on the app can help fund a weekend in Vegas, Striplin said, bundling a range of experiences.

“The rewards program and platform are some of the strengths we have in the industry – our goal is to create an omnichannel experience, and Caesars Rewards is one way to do that,” he said.

Look to the future – and be inspired by Amazon

The joint Ingo/Caesars effort is still in its infancy, but Striplin has observed that the company’s marketing emails to customers have a noticeably high open rate, so interest is clearly there to get funds faster.

Going forward, instant payments will be common for online betting apps, Edwards predicted. But for now, faster payments remain a competitive advantage, cementing customer loyalty.

There’s a parallel here, Edwards and Striplin said, where Amazon’s two-day delivery and Prime drove millions of subscribers to click their buy buttons. Walmart and Target are following suit, giving a nod to other gaming operators following Caesars’ path.

“It’s going to become table stakes,” Edwards said. And companies (in the gaming industry and beyond) that haven’t yet embraced instant money mobility will be at a disadvantage and will work to add it.

Taking advantage of advanced technologies and the huge amount of information accumulating on regular users will be essential. Striplin said the company will look to use the segmentation data it has to identify users who consistently bet with, say, the same debit card over and over – and use fraud prevention and scoring tools. risks to eliminate review periods and make instant payments. up to its brand image.

“It will be as real as picking up your chips at the casino and bringing them to the cashier,” Striplin said.

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A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

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https://www.pymnts.com/news/retail/2022/online-car-shoppers-say-buying-experience-3x-more-important-than-price/partial/