03 2019 | NEWS
US sports betting: How to win players with payments
players will choose their mobile sports betting app based on the deposit and withdrawal options the operator offers. Download it now to find out more.
For online sports betting brands seeking to gain a foothold and grow market share in the newly regulated US market, understanding the attitudes and preferences of a new demographic of unfamiliar players will be critical.
Last month Paysafe partnered with independent research agency Discovery Research to further achieve this; they surveyed over 1,700 US consumers to learn more about their attitudes towards sports betting, what they knew about the regulation changes that have enabled betting legalisation on a state-by-state basis, how regularly they wager and whether this will increase in the future, and the factors they consider when selecting where to place their bets.
The findings of that survey placed payments at the centre of consumers’ choices when it came to online sports betting. The data established that players want to deposit and withdraw from betting apps securely, and they want options as to how they do so. It also highlighted the struggles online gaming has experienced with card transactions, and why offering alternative payments is key to player acquisition.
The data from this survey is revealed in Paysafe’s latest consumer research report, All the ways that players pay, which is available to download now.
The key takeaways from the report include:
Payment security is the top priority for online consumers
Consumers’ perception of the security of their financial details and transactions plays a significant role in their appetite for online sports betting; for individual operators and the industry in general, prioritising payment security and the trust of their brand is vital for growth.
Of those consumers that were surveyed, 37% agreed with the statement: “Placing a bet online is just as secure as placing a bet in person.”
With this in mind, it is unsurprising that security was the most frequently identified factor by both current and potential future players when asked about how they would select a betting site. 35% of current sports bettors named security as one of their top three considerations, rising to 45% of those interested in betting online in the future.
Players want to deposit in multiple ways
In a fragmenting payments landscape, consumers’ preferences as to how they make online transactions are becoming more varied. The data suggests that this is as true for sports betting as it is for eCommerce.
Nearly a quarter of sports bettors (23%) identified the number of payment options available as a reason for choosing a sports betting app or not, and 42% are open to switching their current preferred payment method to one that satisfies important criteria such as greater protection from fraud and ease of use.
Alternative payments are key to acquisition
The issue of card decline rates has severely affected all forms on online gaming since 2013 regulation permitted online poker and casino in New Jersey, Nevada and Delaware. And this obstacle looks set to continue in sport betting; 19% of online sports bettors have experienced a card decline, and of these over half (51%) confirmed that this was a frequent issue for them.
However only 28% of card decline sufferers ceased trying to place a bet. Instead players searched for a different sportsbook to accept their card or had deposited using an alternative payment method such as a digital wallet or online cash voucher. 35% of players that had experienced a card decline had deposited with a digital wallet at least once, and 22% had deposited using a cash replacement system. Operators that rely solely on card deposits will struggle to acquire this significant group of players.
To discover more about US consumer sports betting preferences, as well as Paysafe’s take on the potential market size of US sports betting, download All the ways that players pay now.