ONLINE PAYMENTS
Local to the world A
Payments within online gaming will face two key challenges over the next three years: aligning regulations across borders and the local utilisation of payments. So argues EntroPay’s Commercial Director, Andrea McGeachin
s the iGaming industry continues to expand into new geographic territories, the need
for operators and service providers to be fully localised to the markets they serve becomes a vital ingredient for success and relevance. Specifically, payments within online gaming will face two key challenges over the next three years: aligning regulations across borders and the local utilisation of payments. In today’s iGaming market, payment service
providers (PSP), just like the operators they serve, need to be fully aware of what is happening around the world but specifically at the local market level, especially where there are evolving regulatory issues. They have to stay abreast of the status of local iGaming regulations and make sure they are compliant and communicate a clear, trustworthy and secure payments proposition – if they don’t, they will
“Payments are an extension of an online gaming company’s brand and can be a valuable tool for building awareness and loyalty”
simply miss the potential of that market. Within these markets, payment service providers
need to look at how they manage the transaction process themselves. Getting closer to each individual customer is key to this to indentify from where they are transacting and what card or payment method they are using – from there, intelligence systems can be used to route the customer via the most effective avenue to increase the chances of a successful deposit. Intelligence routing such as this is a process that needs to be monitored closely, meaning that the online gaming operator and the PSP must work very much hand in hand. Indeed, there are many factors that pose challenges
to the payments sector of the online gaming industry and these will evolve in-line with the industry’s own
58 NOVEMBER 2012
growth as it expands into new market territories and onto new platforms, as we’re seeing with mobile/tablet and social gaming. However, for the foreseeable future to 2015, there are two distinct challenges that the industry must address if it is to manage its international expansion effectively: the aligning of regulations across borders and the local utilisation of payments.
REGULATION Ongoing regulatory changes in the EU, US, LATAM
and Asia Pacific will increase the operational complexity of doing business, which will inevitably increase operational costs. Companies must find the right balance between absorbing these costs and passing them onto the
consumer, and payment providers can play an integral role in helping to find the right solution. Those providers who can deliver a platform that provides fraud controls and risk management across different territories while streamlining the payment process will become strategic partners to online gaming operators.
“Addressing local traditions and cultural factors is key to engaging and exciting consumers and producing gaming experiences that people will spend their time and money on”
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