6 minute read
Latin America
by SBC Global
RUPINDER SINGH: CLOSING THE GAP IN LATIN AMERICAN PAYMENTS
RUPINDER SINGH, SVP CONSUMER, DIGITAL WALLETS AT PAYSAFE,
discusses why the pandemic has created an irrevocable shift in consumers’ thinking
BY LUCIA MOURIÑO
Lockdowns and shelter-inplace orders have led to an unsurprising shift away from land-based casino gaming and retail sportsbooks as well as cash and in-person payments - all of which have been replaced by a rising demand for online gaming and digital payment solutions.
In mid-April, Skrill announced Argentine football player Paulo Dybala as its new brand ambassador in a two-year contract. Speaking to SBC Leaders, Singh discussed this collaboration and how sponsorship deals are helping the digital payments industry to expand in Latin America, a region that is still highly focused on traditional methods.
“Our presence in Latin America has always been an important part of our global brand story,” Singh said as he highlighted Argentina, Colombia and Mexico as significant markets where Skrill continues to see opportunities.
The partnership with Dybala seeks to strengthen Skrill’s overall global presence, especially given his reach and impact as an international football star whose name is recognised around the world.
Singh added: “As a brand ambassador, Dybala reflects Skrill’s core values around the speed of delivery and our focus on providing a world-class service. We are looking forward to sharing the many benefits of Skrill with football fans worldwide.”
In recent months, a number of major brands have penned different types of brand ambassadorial agreements with top-tier athletes in a bid to expand their reach to new demographics.
Dybala is currently one of the most valuable players in the world and one of the biggest celebrities in Argentina and Latin America. It should therefore come as no surprise that Skrill wanted to partner with him.
Singh stressed that “he’s not only popular there, but also in Italy and throughout Asia,” so he “appeals to a younger generation who spend more time online or on their phone and who are looking for new ways to manage their money digitally”.
He continued: “Skrill has had a number of successful partnerships in the football world. As an international brand, we focus a significant amount of our marketing efforts in establishing partnerships that extend globally.”
In addition to this agreement with Dybala, in March 2021 Skrill became an Official Partner of UK Premier League team Leeds United, and was also named Official Global Payments Partner of A.C. Milan in 2020.
Singh explained that delivering a service which offers an allencompassing payment portfolio is one of the main pillars of Skrill’s current approach. Ultimately, he clarified, these types of partnerships are about meeting people and connecting them with localised payment options that they are both familiar with and trust.
“We’re excited to see how the campaign resonates with football fans and sports bettors, especially in Latin America where Dybala’s impact is prominent.”
When announcing the collaboration, Skrill commented that this agreement will help them share the many benefits that the brand offers, such as managing money on the move.
But, in the great scheme of things, how important is the football industry in the digital payments industry? Singh believes that there are several benefits given the sport’s global reach and impact, especially considering that football is embedded within the cultural identity of Latin America and Europe.
Furthermore, the Prepaid Mastercard in Europe and Prepaid Visa Card in the United States are highly popular among sports fans, many of whom wager at online sportsbooks. “We see this as an effective way of reaching and engaging with them,” said the SVP.
“Our sponsorship deals encompass highly targeted and effective ways of highlighting how easy, efficient, and cost effective it is to use Skrill as a payment method every day.”
The challenge of taking a step towards the digital world
Payment solutions have helped the gambling industry with the convergence between physical and online operations. This is increasingly apparent in countries where the online industry was taking its first steps or was in the crucial development stages.
Thus, the bottom line is to develop and improve a platform that completely closes the gap between these two verticals and contributes to making online payments the preferred option for online bettors.
When it comes to sports betting, placing a bet online has many advantages. Skrill enables customers to place a bet instantaneously and seamlessly move from one event to the next and cash out winnings in real-time. This all occurs without the need to be present within a physical sportsbook. However, traditional payments - specifically cash - will always have a place when it comes to payments.
According to Singh, the broader discussion is: How do we effectively create a platform that embraces this nuance whilst bridging the digital divide and reassuring consumers that digital solutions can be both modern and simple?
The answer is that rather than cashfree, the future is more likely to involve online payment methods – credit and debit cards, digital wallets and online cash or eCash – existing alongside in-person payments, with contactless cards, digital and mobile wallets and even cash.
“A frictionless omnichannel payment experience for consumers will be key to closing this gap,” he said.
Key elements when developing products
Flexibility seems like one of the pillars of digital payment companies when branding their products. Besides that, there are other functionalities that need to be effective and seamless in order to make these kinds of services attractive for a region that is known for being attached to traditional payment methods.
“When it comes to product development, our primary consideration is to provide a solution that meets the varied and nuanced needs of players and operators,” he said.
“We understand from our recent research that sports bettors are prioritising streamlined online payments, and payouts in particular, over all other factors (odds, sports markets, promotions offered) when choosing a sportsbook.”
Beyond flexibility and the demand for frictionless payment methods, players want to know which operators
the digital wallet is integrated with and be sure the solution is secure: “Through our partnership with Dybala, we’re promoting the Skrill Prepaid Mastercard, which gives users flexibility, security and privacy when spending their money,” said Singh.
In addition to the Prepaid Mastercard, Skrill also offers a multicurrency digital wallet with a number of available services, such as Skrill Money Transfer, which enables users to send money to friends and family internationally, as well as the option to buy and sell interests in cryptocurrencies.
The future of the sector in Latin America
When discussing the main obstacles and challenges that arise when trying to expand a business in Latin America, Singh noted that one of the more imminent ones stems from the need to continually adapt to and anticipate the changing needs of consumers and operators throughout the region.
“Similar to the topography of Latin America, consumer behaviours are diverse and have the ability to evolve
within a short period of time,” he said.
To conclude, Singh stressed that understanding both broadly and on a granular level what the market needs from a payments perspective is an area that Skrill focuses on strongly. “Additionally, each market adheres to its own regulatory framework, so it’s important that we always remain compliant with regulators and local lawmakers,” he added.
And just as Dybala highlighted the flexibility that Skrill offers for people who are “always on the go,” being one step ahead to foresee the next consumer preferences will be one of the keys to expanding the sector and eventually becoming the go-to company in the region. •
