The recent expansion of legal online betting states has come along with an influx of new operators in the U.S. Whether they’re an existing on-premise operator transitioning to the online space, or a startup operator who’s new to the game, these operators are likely starting from scratch in the digital arena. They need to focus on acquisition to establish market share, but there are often a slew of hurdles in their way before they can get to that point—such as platform infrastructure, compliance and regulatory issues and limited team resources.
Operators can alleviate much of this pain by partnering with the right providers to get them up and running. Here are some barriers to entry we often see (and how you can overcome them):
1. Navigating state-by-state regulations
Online betting markets, both iGaming and online sports betting, are moving quickly. Regulations are constantly changing, and it’s tough to sift through new requirements—not to mention new operators might not have a dedicated legal & compliance team yet.
Finding a payments partner who is well-versed in the regulatory market, and who is already a licensed money transmitter in all legal online betting states, allows operators to leap over many of the regulatory barriers to entry. That partner can speed up onboarding while remaining compliant, getting operators live faster than they could on their own. In addition, partnering with a secure payment gateway is a great step to mitigating risk and fraud.
For new operators without a proven track record, being accepted and onboarded by individual payment providers can be challenging. The process could take upwards of a year, delaying the ability to provide certain tender types and, even worse, possibly delaying an operator’s launch as a whole. With a trusted payment provider, operators have access to a multitude of tender types without needing to go through the approval process for each one, speeding time to market.
2. Differentiating your platform from the competition
Research shows that trust is key when it comes to acquiring new customers—especially those that are new to online betting in general. At the first sign of trouble, especially with payments, casual bettors are likely to bail on a betting platform. These bettors are often already nervous to put their bank account, card, or digital wallet information into operators’ hands.
To add to this, the online gaming payment process is often clunky. Betting platforms often redirect customers to a different site or app to pay, taking them out of the native flow of the app. Or new players may experience a card decline on their first try and they won’t reattempt with another payment method because they already feel burned. Both of these things result in a negative first experience. Differentiate your platform by providing a user-friendly and trustworthy registration and first deposit process.
A payment provider who can embed a seamless payment flow into your app builds trust from the player’s first impression. In addition, partnering with providers who can give insight into player behavior helps plan a feature roadmap to cater to the wants and needs of different player demographics. Player payment data is more important than one might think—uncovering emerging trends in player segments as well as points of friction within an app or site. Understanding customers’ needs and evolving to meet them would make any operator stand out from the crowd.
3. Allocating internal resources to back-end operations and infrastructure
New operators have better things to worry about than dozens of vendor contracts, complicated 3rd-party integrations, and payment reconciliation. Building and maintaining the back-end infrastructure is a strain on operators with limited resources. Those resources should be focused on acquiring market share and building the brand, which is why it’s critical to have partners that will take on as much of the operations burden as possible.
PayNearMe’s MoneyLine platform for iGaming and online sports betting acts as an all-in-one gateway and processor, which comes with major benefits to regional and startup operators. Instead of working with multiple vendors for payments, MoneyLine consolidates all of the most popular payment types into a single platform, meaning a single vendor and single contract for all payment needs. In addition, one platform allows operators to speed up reconciliation, providing a single settlement report with all payment types and charges.
With one payment platform, operators get the benefit of a single API integration for all payments, which reduces the number of development hours required to launch. One integration also ensures success in the future, enabling operators to plug into new features (such as new payment methods) without completing a lengthy implementation process.
4. Perfecting the initial registration and payment process to convert players
A hypothetical scenario: a player hears about a betting platform, likes what they’ve heard, and they’re ready to place their first bet. They arrive at the operator’s site or app, only to find a registration and payment deposit process that takes 10+ minutes. That player becomes frustrated, assumes another betting platform is more user-friendly, and jumps ship to go elsewhere. That operator just spent ad dollars to acquire a customer who didn’t convert due to a negative first experience.
The registration and deposit experience is a player’s first introduction to an operator’s brand. It’s critical to put time and thought into the registration and payment journey—allowing the player to quickly sign up and make a first deposit without having to navigate away from the app or site, giving them a seamless flow. They also want options, especially newer or casual bettors. Providing the familiar payment types they already use in their day-to-day life, such as debit and PayPal, builds a sense of trust.
The MoneyLine platform offers all of those payment options in one streamlined platform, baked right into an operator’s native user interface. Customers aren’t jostled around to different windows or new tabs to pay, which can cause uneasiness. Players can select their favorite payment method and quickly and painlessly make a deposit, which is what earns repeat business.
Bottom line? MoneyLine makes payments easy—for operators and players.
Don’t just take our word for it, customers and partners love MoneyLine’s ability to quickly get them live and competitive in the market:
“What stands out with PayNearMe is the ability to manage so many relationships with one commercial agreement. This has allowed us to get to market faster.”Andrew Patterson
“We know that as future payment options become available through MoneyLine, our operators will have access to them quickly, allowing them to scale to meet market demand and stay competitive.”Andrew Shonka
Director, Customer Success – Amelco
Trust the MoneyLine platform for iGaming payments
PayNearMe’s MoneyLine platform gives operators a complete deposit and withdrawal solution that simplifies payments and helps overcome barriers to entering the market.
To learn more, contact our team or view an on-demand demo of the platform.