Accessibility, convenience, security and emerging technologies are vital payment factors for companies to consider, says George Haralabopoulos, Head of Payments Product at Kaizen Gaming, a multi-national betting and gaming group.
Haralabopoulos, who will speak on the opening day of the inaugural Payment Expert Summit in Lisbon later this year, shares his views with Payment Expert on the impact of instant payments, biometrics, cryptocurrency, and everything in between.
Payment Expert: Thanks for speaking with us George. To begin with, what differences do you see regarding payments preferences between emerging and established markets?
George Haralabopoulos: There are several key differences in online gambling payment preferences between emerging and developed markets. Most prominently, in emerging markets, players may have rather limited access to traditional banking-driven methods like credit cards. This results in a higher reliance on the use of alternative payment methods such as e-wallets, mobile payments, and prepaid cards to a smaller extent.
Meanwhile, established markets often have a much more mature financial infrastructure, allowing for easier access to credit and debit card payments. Players usually feel more comfortable using these traditional payment methods due to a long-established sense of familiarity and security.
Additionally, factors such as local regulations and whether payments are made and handled domestically or internationally also determine players’ preferences no matter where they are located.
PE: How significant is offering a diverse range of payment methods to the customer journey and in order to grow your customer base in various markets?
GH: Offering a variety of payment options in the gaming industry is crucial for both improving the customer experience and growing customer bases across different markets for several reasons.
Firstly, accessibility. By providing multiple payment options, it’s possible to cater to customers’ diverse financial preferences and capabilities. Not everyone has access to every type of payment method, so offering alternative payment options can make your gaming platform more inclusive.
Secondly, convenience. Different customers will no doubt have different payment preferences. Offering a variety of methods improves the overall customer experience and makes transactions more user-friendly.
Thirdly, we must consider market expansion opportunities. Different regions and markets across the world have their own unique payment behaviours and infrastructures. By offering locally preferred payment methods, you can attract customers from a wider range of markets and enter new markets more easily.
Lastly, we have to also think about security. Providing reputable and secure payment options builds trust with customers, leading to higher customer satisfaction and loyalty.
PE: Which emerging payment technologies are playing the biggest role in revolutionising the betting customer journey, in your experience?
GH: A number of emerging payment technologies are playing a significant role in revolutionising the betting customer journey. Instant payment methods streamline the payment process for betting customers by enabling quick deposits and withdrawals, eliminating lengthy procedures and enabling faster access. Likewise, mobile wallet payment options allow customers to make quick and convenient transactions while storing payment information securely on their mobile devices.
Taking security a step further, biometric payment technologies can be integrated into platforms to provide secure and seamless transactions, offering enhanced security measures and improving ease of use for customers. Cryptocurrency payments are also gradually gaining popularity in the gaming industry due to their decentralised nature and potential for faster transactions. Moreover, they offer anonymity and potentially lower fees compared to traditional payment methods, making them an attractive alternative for betting customers.
PE: How does Kaizen Gaming ensure it is at the forefront of payments innovation across a range of markets in which it operates?
GH: Kaizen Gaming stays at the forefront of payments innovation by constantly researching and implementing cutting-edge technology solutions. For example, by investing in our own in-house development to create an overall bespoke payment infrastructure tailored to an individual clients’ needs. This can also include implementing flexible payment options to cater to various market preferences.
It’s also important that we are proactive and able to adapt quickly to regulatory changes in different markets thereby ensuring compliance. We also partner with top payment providers to leverage their expertise and technology and use data analysis to understand customers’ payment behaviours and trends.
PE: Is the increasing digitisation of gaming setting up hurdles to traditional retail customers? How can operators address this?
GH: The increasing digitisation of gaming does pose challenges to traditional retail customers, since it shifts consumer preferences towards online and mobile platforms.
To address this, operators can consider several strategic approaches. Firstly, by focusing on improving the overall online gaming experience to attract traditional retail customers to digital platforms. This can include paying closer attention to personalisation for gaming content and offers based on customer preferences.
Furthermore, operators should also think about how best to provide resources and support to help traditional retail customers transition to digital gaming, thereby reducing the barriers customers face to move onto their platforms and encouraging their participation.
Finally, by implementing more robust security measures and ensuring rigorous data protection operators can build trust among traditional customers wary of transitioning to digital platforms.
PE: What drawbacks do traditional payments methods have in the modern, web-focused betting sector, and alternatively, what could be some of the benefits?
GH: In the modern, web-focused, betting sector, traditional payment methods like cash or bank transfers may have certain drawbacks compared to digital payment options. These include a lack of accessibility, with many traditional payment methods requiring a customer’s physical presence or involving time-consuming processes.
Furthermore, from a security perspective, cash transactions can be risky in online transactions due to AML or fraud reasons. Similarly, bank transfers may involve sensitive personal information sharing, raising security concerns. Moreover, traditional payment methods such as checks, or bank transfers, also have longer processing times compared to digital payment options.
On the other hand, digital payment methods in the web-focused betting sector may offer various benefits. Chief among these is speed and convenience, with digital payment methods like e-wallets, credit and debit cards, allowing for quick, sometimes instant, deposits and withdrawals on online betting platforms.
From a security perspective, digital payment options often come with robust encryption and security measures, reducing the risk of fraud or unauthorised transactions. At the same time, digital payment methods have a more global reach and use, enabling more seamless cross border transactions.
PE: How does Kaizen ensure it meets customers’ payments demands and requirements whilst also working to curb irresponsible and unsafe betting behaviour?
GH: Kaizen Gaming employs various strategies to meet customer payment demands while promoting our top priority of responsible, safe and secure gaming. These measures include offering a wide range of payment methods, such as e-wallets, credit/debit cards, and bank transfers, to cater to diverse customer preferences and allow customers to choose their preferred payment method. We also ensure secure payment processing by implementing encryption technology, secure payment gateways, and other measures to protect customers’ financial information and build trust.
Importantly, we also place a priority on the provision of Responsible Gambling Tools. We provide a multitude of tools and resources to help customers manage their betting or gaming behaviour responsibly, including deposit limits, time limits, self-exclusion options, and access to educational materials on responsible gambling. Moreover, we always work closely with regulatory authorities to ensure compliance with responsible gambling guidelines and regulations wherever we operate.
PE: Is the inclusion of a dedicated Payment Expert Summit at Lisbon this year indicative of the importance of this technology to today’s betting industry?
GH: The Summit likely signifies a recognition within the industry of the crucial role that payment solutions play in the success and growth of online betting platforms.
It is a fact that the gaming industry relies heavily on smooth and secure payment processes to attract and retain customers, facilitate transactions, and ensure regulatory compliance. As online betting continues to evolve and expand, the need for innovative payment technologies, streamlined payment methods, and robust security measures becomes increasingly significant.
By hosting the Payment Expert Summit, organisers are signalling their commitment to addressing the challenges and opportunities related to payment technology within the betting industry. Such an event provides an important platform for industry experts, payment service providers, and regulators to discuss emerging trends, share best practices, and collaborate on solutions to enhance the overall payment experience for both operators and customers.
The Payment Expert Summit, part of the upcoming SBC Summit, will be held at the Feira Internacional de Lisboa from September 25-26.