“Exceptional customer experiences are the only sustainable platform for competitive differentiation.” – Kerry Bodine
Today, consumers not only want—but expect—convenience in every aspect of their digital lives. However, the iGaming sector hasn’t always led the charge for fantastic consumer experiences. Historically known for high card rejection rates, poor website designs and long wait times to extract winnings, iGaming companies have struggled with player acquisition and retention.
Payouts, in particular, have been a point of concern, often taking several days to get to players after withdrawals are requested. To fully enjoy their online gaming experiences, players need to know that they can trust their chosen iGaming provider to provide fast, secure payouts using their preferred payment methods.
In fact, a research report conducted by Truelayer found that “payment regimes are a key driver for players, whether they are choosing a new gaming provider, allocating deposits or deciding to move on.” Specific to the withdrawals process: “8 in 10 players said fast payouts are important when choosing an online gambling provider.”
What’s the Issue?
So, what makes payouts take longer than expected? Here are a few reasons:
- Slow money movement: Traditional ACH takes two to three days from approval to land in the account; checks can take weeks to arrive.
- Approvals & manual processes: Operators have to approve the withdrawal request to comply with internal controls, often requiring manual review and intervention.
- Preferences: Deposit methods may not align with player payout preferences, requiring additional checks and manual data entry.
Additionally, operators often face other payment challenges outside of the payouts process that can slow them down. These could include:
- Multiple vendors: Having multiple payment vendors means more integrations and multiple prefund accounts, leading to increased operational costs and time-consuming processes.
- Evolving payment rails: Payment rails are constantly changing, and it can be difficult for payment providers (and therefore operators) to keep up. New options such as real-time payments, cryptocurrency, FedNow and payouts via ATM all present opportunities— but also challenges.
- Security and compliance: With any payments solution, it’s imperative that security and compliance are at the forefront; however, these requirements can also slow down a business that isn’t prepared with the right protocols and processes in place. Some areas to consider include anti-money laundering laws, ID verification/KYC, fraud protection and credentials.
All of these complexities can make payouts difficult to automate, slower and more expensive to process.
Digital Payouts from PayNearMe
PayNearMe helps operators reduce integration complexity by relying on a single vendor for multiple payout types and channels. This helps speed up the payouts process and future-proof operations by trusting an innovative partner with a track record of innovation and an intuitive, easy-to-use platform and payouts process.
Payouts are only as fast as an operator can process them. PayNearMe offers built-in, logic-based rules that help automate more of the approval process so payouts get to players faster. Additionally, operators can reduce fraud with automated checks and lower PCI compliance risk through specified workflows. Finally, logic-based business rules can help streamline and automate processes to lower risk and drive operational savings.
How It Works: a Technical Look
- The operator provides player data to PayNearMe via API integration.
- The PayNearMe platform accesses key data such as past funding types, enabled push types, funding limits, funding rules and compliance and verification information and passes it back to the operator via webhooks.
- The operator receives the output of this collected data, including payment behavior and history, and the PayNearMe platform options adjust based on this information and any business rules in place.
- PaynearMe’s third-party partners provide address validation and bank validation at specified points during the payouts workflows.
Payouts: Player Perspective
From the player’s point of view, the payouts process looks something like this, though the flow depends on the payout method chosen.
The image above illustrates a payout via debit. As you can see, the process is quick and easy, with a withdrawal process initiated in only a few clicks.
Get Started Today
Payouts are a significant player satisfaction issue. Players want payouts fast, using their preferred payment methods. Offering fast, easy payouts makes players happier and operators more competitive in the market.
Learn more about digital payouts for iGaming from PayNearMe. Request your demo today.