US bettors have a myriad of payment options at their fingertips when placing a wager online, but cards hold the pole position in US igaming payments according toΒ Trent StriplinΒ ofΒ Caesars Sportsbook.
Due to speak at theΒ SBC SummitΒ North AmericaΒ next month, Striplin β Caesars Sportsbookβs VP of Payments and Fraud β has given Payment Expert a breakdown of the payments dynamics of the vast US online betting and gaming sector.
Payment Expert: Firstly Trent, what has been the early impact of the FedNow payment rail and is the US online gaming/betting sector benefiting from it?Β
Trent Striplin:Β While we have not yet seen an impact from FedNow in the US as it is still being rolled out by payment providers, we have been live with RTP for some time now. This has been a massive win in bringing the US banking system up to speed with the 21st century.
I am most looking forward to FedNow providing the same instant payments that we see with withdrawals but for deposits as well, an area that is lacking from The Clearing House and lack of their RFP product. Additionally, FedNow brings another set of rails for redundancy and additional bank coverage.
PE: What have been Caesarβs most popular payment options over the last year and what do they tell you about the US bettorβs appetite for digital payments?
TS:Β 95% of deposits and withdrawals come from cards, PayPal, and online banking/ACH but cards are king in the online gaming space. The launch of OCT withdrawals, coupled with expanded bank acceptance of debit, has skyrocketed cards back into the pole position for both deposits and withdrawals.
The US bettor is looking for simplicity and now they can use their debit card for pay-ins and payouts in real time. Customers use their card everywhere else so why should online gambling be any different?
PE: Why has it become more crucial than ever to provide a range of payment options/methods in order to maintain player retention?
TS:Β I think that it is important to offer customers a range of payment options that they can choose from so they can use what they are comfortable and familiar with. Because of the continued lack of complete bank acceptance for the gambling MCC and limits with other payment providers, it is imperative that operators provide these options in order to remain competitive and retain customers.
Cards aside, there is also a benefit in offering multiple options for customers to use as many prefer to use specific accounts or methods for budgeting, recordkeeping, or to remain separate from other aspects of their finances.
PE: With you set to speak on a SBC Summit North America panel this year on the future of payment and tech, could you lend some of your insight into how and why AI may potentially have a fundamental impact on US payments?
TS:Β In my mind we are already seeing AI impact the payments world from a fraud perspective. Large fraud solution providers such as Accertify, Sift, and Kount are able to leverage AI to introduce selective friction in the deposit and withdrawal flow.
This allows the customer to process their transactions quicker and safer than ever while protecting the operators from mounting losses due to chargebacks and returns.
From a pure payment perspective I think you are going to start to see true payment orchestration in terms of maximising authorization rates and recovering declined deposits seamlessly in real time and fully backed by a suite of reporting.
PE: Do you envisage in the near future that cryptocurrencies will not only be accepted by the mainstream, but will also become a functioning payment method that could settle betting deposits?Β
TS:Β This is the million dollar question that has been on everyoneβs minds for several years now but unfortunately I do not think we are quite there yet. Cryptocurrency at the moment, to me, seems to be more of an investment play than a true stored value that can be used to purchase products, services, or funding.
That is not to say there are not numerous other values that it provides in terms of automations, but we are a few years off from seeing it widely used to deposit funds into an online gambling account and used to place a bet.
There was some good traction being made with NFTs crossing over into mainstream sports such as NBAβs Top Shot product that I would like to see make a return as it makes crypto more accessible for the masses and that foundational base and trust is what will be needed to make it all work.
PE: Lastly Trent, and thank you for your time, can you name the payment/tech trend(s) that you believe will impact the US betting industry the most this year?Β
TS:Β I am interested to see how the method mix changes now that RTP/FedNow are becoming available. Will cards stay in the top spot or will the playing field begin to level? The other thing I always keep a close eye on is the cashless casino in brick and mortar, which is a very interesting space to watch.
Trent Striplin will be speaking at the SBC Summit North American between 7-9 May, 2024. Purchase your ticketΒ HEREΒ to gain access to all three days of the event and keep up to date with the latest news by subscribing to the bi-weeklyΒ SBC Summit North American LinkedIn newsletter.
Source: Payment Expert