Frictionless iGaming pay-ins/payouts and Open Banking: a match made in heaven?

Open Banking directly addresses player needs for speed, convenience, value and choice. And in so doing, does the same for iGaming operators. What’s not to like?

What do players really want? 

Gamers want to game. And, to quote Taylor Swift, the players gonna play, play, play, play, play.

They play to improve their competence or mastery in games of skill. Or better their odds in games of chance.

They play to compete against themselves, others or the house. They play to see measurable progress through levels, personal bests or winnings.

They play for an extra income stream or even as career if they turn pro. But mostly they play for fun – for entertainment, excitement or escapism.

Paying, on the other hand, isn’t uppermost in their minds.

What do players want of payments?

FOMO is real for players. They want quick and easy funding of their gaming accounts. When they win, they want payouts to be just as quick and easy, so they can celebrate and play again.

They see payments merely as a means to an end. The part they must get past to get on with playing. So, maybe it would be better if it was as unobtrusive and invisible as possible?

Granted, this isn’t how they’d describe it themselves. But in payment industry terms, players want ‘frictionless payment experiences.’

What do these look like in everyday practical terms? And more importantly, how can Open Banking help iGaming operators delivering them?

How does Open Banking deliver on player and operator needs?

Open Banking basically describes a way of securely sharing data held by banks, if the customer consents to this. Some countries mandate a standardized format for this data-sharing.

Among the many use cases for Open Banking, the stand-out one for us is payment. Open Banking makes it possible for customers to pay direct from their bank accounts quicker and easier than ever before.

This makes Open Banking a match made in heaven for players. But also for iGaming operators wanting to increase revenue, cut costs, improve business, or all three.

• SPEED

Payment speed is essential for players. They don’t want to wait to wager or to win. But they often do. Which is something they just can’t understand.

So much so, speed has become a competitive differentiator for operators. When customer acquisition costs are high and regular customers particularly prized, only fast will do.

Open Banking payments are usually available on account seconds after they’re sent. This makes it faster than cards for pay-ins and payouts, which boosts player satisfaction.

• CONVENIENCE

Everyone likes things that are the least hassle. It’s the same for paying and getting paid. The UX for Open Banking payments is slicker than for traditional bank transfers.

When integrated at checkout, players simply select bank transfer, find their bank and confirm payment. That’s it.

There’s no need to top up wallets or enter card details. That makes it more convenient for those gaming on mobile phones and tablets. Plus increases conversion for operators.

• VALUE

Account-to-account Open Banking payments cut out the middlemen. This makes them cheaper than debits or original credits to a payment card account.

What’s more, there’s no concept of card interchange, chargebacks or PCI DSS, or the associated costs.

Operators can cut their costs of payment acceptance costs. But also pass on savings to players in the form of lower fees and an improved proposition.

• CHOICE

Not everyone has, uses or trusts cards for online payment.

In fact, credit and debit cards only represented around 32% of global e-commerce transaction values in 2022. This is predicted to fall to 26% by 2026, according to card acquirer Worldpay.

If operators want to avoid losing three-quarters of potential sales, they must offer more payment choice. And see cardless account-to-account payment powered by Open Banking as complementary to cards.

Open Banking directly addresses player needs for speed, convenience, value and choice. And in so doing, addresses operator needs for the same in their businesses.