The role of UK igaming payments in player acquisition and retention

The true extent of the role of payments for player acquisition can be seen in data from our latest All the ways players pay report, which surveyed online sports bettors in the UK, US and Ontario, Canada, in November 2022. The research indicates that payments are now a critical factor for UK players when deciding which online sportsbooks to wager at: four in 10 named quick and easy deposits as their top factor when choosing an online betting brand.

Highlighting how mission-critical it is for operators to offer the payment experience that players are seeking, starting with how they deposit and withdraw, ‘frictionless payouts’ came out ahead of a sportsbook being a brand they could trust (35%), good odds (31%) and appealing promotional offers (31%). The availability of their preferred payment method and quick and easy deposits were also important to more than a quarter of players (26% and 27% respectively).

It probably comes as little surprise that debit card payments dominate the UK market, with 59% of players saying it is their go-to method for depositing – followed by bank transfers (30%) and mobile wallets (28%).

Also on the rise in the UK, 22% of players prefer to use digital wallet solutions such as Skrill and NETELLER. With digital wallets typically providing the most rapid transaction times, this is almost certainly linked to demand for quick and easy deposits and fast payouts, which is why it’s so important for UK operators to ensure their cashier includes a wide range of alternative payment methods (APMs). If not, they are missing out on a significant opportunity to acquire new customers and falling behind their competitors that do.

Keeping players happy

So, what do UK players expect from the payment experience? Encouragingly, our report found that over half (54%) of UK players are happy with the payment experience they currently receive – just 14% of them are dissatisfied.

However, this also means there are still many opportunities to improve the customer experience, which are ripe to be explored by operators and which could drive acquisition and retention. And the results show how important it is to get this right: when it comes to retention, seven out of 10 UK players say a bad experience would result in them not returning to the brand.

Security is also extremely important to UK players. Two-fifths say it’s what they care about the most when making a deposit to an online sports betting account, followed by speed (37%) and ease (36%) of making payment.

Notably, over half (56%) of UK players said they would not proceed with a deposit if they had concerns about the payment security of a transaction. Furthermore, almost as many (46%) would put on the brakes if they were asked to provide what they felt was too much financial information.

This is why operators must deliver the payment methods that offer the levels of security which players are looking for. Digital wallets offer heightened security because the player’s financial information is not shared with the sportsbook. This comes alongside the ease and speed of transactions that players are seeking.

The research told us that the availability of the player’s preferred payment method is equally important. Indeed, close to half (46%) of UK players said they would not proceed with a transaction if they couldn’t use their preferred deposit method.

Payments clearly make a difference to a player choosing to wager and stay with a brand. To maximise player acquisition and retention, it’s vital that operators in the UK understand the expectations of players, and not only meet, but exceed them.

Underpinning all of this is the need for a payment stack that offers a variety of both traditional and alternative payment methods, while also ensuring players can have confidence in the security of their transactions. It’s the operators which can provide this, alongside seamless deposits and fast payouts, that will gain the competitive advantage.

Zak Cutler is a regulated US online gaming executive with a proven track record in strategy and corporate development. Before Paysafe, Cutler worked at both Jackpocket, an innovative app enabling players to buy state lottery tickets online, and DraftKings, where he was responsible for all product initiatives related to payment processing, US compliance, and international expansion.