SBC News Voice of the Sports Betting Industry
The relationship between payments and sports betting is one that’s constantly evolving as operators seek to maximise customer engagement through the most efficient processes possible.
As such, the need for an efficient payment experience has grown exponentially in recent years. That view is supported by Anthony Medica, Business Development Manager at ECOMMPAY, who believes that payments in sports betting are evolving and betting operators need to be on top of payment trends to stay competitive.
He noted: “As this is an industry in which transactions flow in both directions – from customer to merchant and from merchant to customer – businesses must ensure their e-payment platform accepts not only online payments, but can also issue mass payouts to various stakeholders.
“Payment service providers must equip their operator clients with capabilities to facilitate payouts to the same payment methods used for incoming payments: alternative payment methods as well as cards. ECOMMPAY supports automated, mass payouts on its e-payments platform, ensuring successful transactions in whichever direction a sports betting client requires.”
He went on to outline the importance of partnerships with Mastercard MoneySend and Visa Direct, specifically in Europe. “There is a small selection of Visa and Mastercard Principal Members,” he explained.
“ECOMMPAY is one of the few. These partnerships ensure a fast, reliable service. To facilitate mass transfers to international payment system cards, Visa and Mastercard enable automated payouts on cards worldwide by deploying Visa Direct and Mastercard MoneySend.
“International payment networks offer speed and global reach. Visa Direct, for example, is accessible in 200 countries across the globe, ensuring that issuers can quickly access funds to facilitate payouts to their customers. However, speed is not the only factor to consider. The payout must be conducted in the same currency as the card holder’s account.”
Direct card acquirer ECOMMPAY offers mass payouts in local currencies. Operator clients can facilitate transactions to their customers in a single click. The speed, however, will depend on the capabilities of local banks.
“Mass payouts to payment cards is a flexible solution,” Medica added. “Intelligent routing and cascading enable payment service providers to configure the routes across which payments and payouts travel, reacting promptly to rectify any disruptions across payment channels in order to achieve a higher success rate.”
Further mapping out the key elements that ensure a thriving relationship between operators and the payment sector, he underlined the importance of not solely relying on payment cards.
“Payment cards can’t be the only payment method through which sports betting operators facilitate mass payouts. After all, a growing number of consumers prefer to pay – and to receive money – through alternative means.”
Identifying where operators should turn in their desire for the expansion of options, he detailed: “E-wallets are one example of an alternative payment method popular among a large segment of the European consumer audience. Last year, e-wallets grew by 20% in Europe, accounting for $42 billion of the market share. Meanwhile, Visa and Mastercard transactions amounted to $35 billion in 2019.
“The modern payment landscape is dominated by large corporations, known as big tech, and open APIs. Big tech companies have developed their own payment infrastructure to support online business. Mass payouts are part of the functionality they offer, and many platforms and payment gateways enable merchants to issue mass payouts to e-wallets as well as traditional payment cards.
“For instance, the PayPal Mass Pay API provides automated payouts using one CSV file of up to 5,000 emails linked to PayPal accounts. All that remains for the payout issuer to do is define the amount and currency code. If desired, the transaction identifier and an optional message to the customer can be provided.”
Automated mass payouts is an element that’s elevated in importance as operators embark on global expansion and significantly grow their customer bases.
Medica cited system crashes as a potentially pivotal factor in hindering engagement for payment partners, stating: “System crashes during complex operations can cause significant delays. E-payments are no exception. Software and hardware errors are responsible for financial losses at best and reputational damage at worst.
“Payment service providers invest into system reliability to ensure an optimal level of service to their merchant clients.
“ECOMMPAY’s continuous improvements have paid off, resulting in 99.99% system availability paired with a higher mass payout success rate. Monitoring the entire payout process carefully, it’s why we always strive to ensure system continuity even in cases of unforeseen errors on the side of external payment partners.”
While seamlessness is the focus and e-payments are thrust into the forefront of operations, Medica insisted that security isn’t hindered in the slightest.
“All payment transactions, including mass payouts, must be protected by an additional layer of security. ECOMMPAY’s security solution is the proprietary FraudStop risk management system, which is complemented by manual transaction monitoring.
“This comprehensive solution detects unauthorised activity in the early stages, which enables the payment service provider to work collaboratively with its operator clients to negate the threat. The combination of automated and manual review ensures suspicious transactions are swiftly identified.
“To achieve high conversion and reliable payouts on a global scale, merchants receiving high volumes of incoming traffic must ensure they have the necessary infrastructure in place. A combination of reputable partners, various payment methods, sophisticated technologies, and optimal security is key for sports betting operators looking to grow their business.”
