10 minute read
Payments
from SBC Leaders Issue 19
by SBC Global
MIKAEL LIJTENSTEIN: SETTING SIGHTS ON FURTHER EUROPEAN EXPANSION
SPEAKING TO SBC
LEADERS, the CEO of AstroPay explains how the company plans to draw upon its expertise in emerging markets to fuel its expansion across Europe and why an in-depth knowledge of individual jurisdictions is needed to navigate an ever-changing payment landscape
BY ERIN GALLAGHER
The European market has undergone drastic changes in the last few years, with a number of countries across the continent introducing new regulations on payments, gambling and ecommerce.
For AstroPay, its European entry proved to be challenging at first - largely due to the complexity of the region and peculiarities of each individual market.
But by drawing upon the company’s global experiences, CEO Mikael Lijtenstein explained that AstroPay has been able to overcome these obstacles and meet the needs of its European customers.
He told SBC Leaders: ”Understanding the complexity of the region and the particularities of each market within Europe was a challenge at first, but this is not something new to us. We know each market is different, and the payment landscape is different.
“For more than 12 years we have been working in developing local solutions by listening to our users to make sure we fully understand what our customers want. This is where our experience comes as an advantage. It allows us to offer exactly what our clients need by respecting the differences of each individual user.
“We also have dedicated teams to source feedback from our users, especially the early adopters in each country, to hear about their experience using our product, suggestions for improvements, and
which sites they'd like to use AstroPay on, among other things.
“This is why we are a customer-centric company, we work with our customers and they help us progress day by day.”
AstroPay made its debut into the European market back in 2021, planting its flag in Portugal, Spain and the United Kingdom.
With populations that have a penchant for contactless payments, this presented a new window of opportunity for AstroPay to expand its global footprint. To ensure the company’s success within Europe, Lijtenstein took some time to work alongside the company’s clients and partners to create a truly unique solution.
“We always try to be 100% compliant with these principles: to be fast, easy, and secure,” Lijtenstein shared. “By applying these principles on a daily basis, we have acquired millions of users and, of course, we don't stop there.
“We want to get to know our users, be connected to them and listen to their needs. By doing it this way, the user who tries AstroPay once, continues to choose us over time.”
So does this mean that AstroPay has abandoned its focus on emerging markets? You can probably guess that the answer to this question was a resounding no.
With a considerable amount of experience within the emerging markets, the payments provider believes it is well placed to simplify the risks and challenges that its clients may face - both across younger and more mature markets.
To do this, AstroPay deploys a number of resources which help provide an elevated user experience by executing A/B testing, surveys and listening to its consumers’ feedback. This, in turn, will help with understanding customer needs and what they value most.
Lijtenstein continued: “Emerging markets remain a strong focus for us as we are experts in simplifying complexities for our clients and customers.
“However, we want to bring our solutions and services global, as a one stop solution for the needs of our international clients, and Europe is a key market for us to achieve that.
“For those who want to succeed in emerging markets such as Africa, Asia and Latin America, we would advise partnering with a company that has the expertise in these regions and a network of local payments providers, as these markets can be complex and difficult to understand at first.
“Being close to the users is paramount to engage them and that is why we partner with more than 200 payment methods which are easily recognised by the customers.”
Understanding that every market has its own unique set of characteristics, Lijtenstein noted that the common factor between emerging and mature markets is a demand for both convenience and security.
This, he added, has been demonstrated by the growing demand for AstroPay’s anti-fraud systems.
“Each market is different and every user is different, but one thing common is that all users demand convenience and security. This is proven in our anti-fraud systems that are trusted by our users and are second to none as we tested it in the most difficult markets to ensure that as we enter Europe, we can deliver a very secure payment solution to our clients and users there.
“Furthermore, with so many options around the corner, you need to make sure that the first contact that your customer has with your solution will convert into a successful payment, and that the user will feel comfortable using your product.
“This is critical to acquiring new users. We have applied it in these markets, and we will continue to apply it in the rest of Europe.”
When considering what lies ahead for AstroPay’s European plans, expansion into new markets was high on the agenda - alongside new additions to the payment provider’s portfolio.
Keeping the list of countries under wraps, Lijtenstein concluded: “We are already looking at the next European countries to add into our portfolio and we have a very ambitious roadmap.
“We are constantly working to add more payment methods and more merchants to adopt our solutions, so that our users can pay and withdraw how they want, and where they want.” •
PAYMENT PROCESSING: A CHALLENGE TO PLAYER ACQUISITION?
AT THE RECENT SBC SUMMIT NORTH AMERICA, panellists discussed the reasons why a long-winded payment process can present huge challenges for player conversion
BY ERIN GALLAGHER
As more US states begin to open up their doors and welcome in a regulated sports betting market, questions are inevitably being raised over the different payment options available for players. And it comes as no surprise that card payments are increasingly highlighted as a preferred option for many bettors.
Speaking as part of the ‘Staying ahead of the game – players' real payment preferences’ panel session, FanDuel’s Payment Operations Director, Trent Striplin, disclosed that a convoluted payment process can be “one of the toughest parts of the conversion funnel”.
He told delegates that a tricky payment process can often deter someone from placing a bet which, from an operator’s perspective, will hand an advantage to their competitors.
“The consumers’ preference is to use their cards,” he said. “It’s a device they use every day, whether it's an online purchase or a retail purchase. Everyone has a card in their wallet or attached to a digital wallet."
He added: “It’s the consumer preference, and it can be a very frustrating and confusing process when to use that card everywhere else and it doesn’t work on an operator site. It can be one of the toughest parts of the conversion funnel.”
Greg Kirstein, Paysafe’s Vice President of Business Development for North America iGaming, echoed a similar view, but expressed that consumer confidence in operators' payments capabilities has increased dramatically in recent years.
He remarked: “As a consumer, when you start to see other payment
methods and they work the same way they do in other parts of ecommerce each and everyday, it just brings up confidence.
“I think that’s what we’re starting to see now and it’s going to play well for operators and new providers that are looking to dip their toes into gaming that historically haven’t been there.”
Offering further insight on the Canadian space, Christopher Granger, Lottery & Gaming Lead, Visa Inc, believes that the sector is learning. He warned, however, that it’s important that it should continue learning from the European, Australian and Rest of World markets which have been ‘so much more advanced’ than North America.
He added that payment providers
are continuing to liaise with partners from across the betting and gaming industry to help deliver a better experience for sports bettors.
“To compare what’s going on in Canada right now, it’s a pretty close comparison to what we had in the US four years ago,” Granger observed. “We’re trying to take those learnings as far as the issuers are interpreting it, whether they are understanding it.
“We’re working with partners and trying to do fact gathering, have conversations with issuers and tech partners and the like, so that we can have a better experience than what we had in the states when sports betting was first legalised.”
But while it is promising that players are beginning to trust operators more when it comes to online transactions, for Kamran Hedjri, Group CEO of PXP Financial, there must be an increased focus placed upon consumer education.
He added that in the last few years, we are also beginning to see approval rates “getting better and better”.
“The approval rates are getting better and better and so we are changing our approach. But what is important for the operators is that they can pass consumers through as much as possible and this offset this negative experience of card rejection.
“We see that confidence is increasing more and more, and the level of education and understanding on how the operators are dealing with this with the help of payment providers is improving.”
The changes to approval rates was something highlighted by Striplin, who shared the view that these have increased over the past two years from around 30-40% to the current standing of 80-90%.
However, the Payment Operations Director stated that the overall payment process presents the greatest challenge to customer acquisition for sports betting operators.
He concluded: “The landscape is changing. Customers are having a better experience and it creates an allround more enjoyable flow.”
Hedjri and Striplin found further common ground with regards to demographics, as both observed that younger and older customers have very distinct payment preferences.
However, Hedjri added that country
and state-based considerations must also be taken into account, saying: “It is very much country related and very local. What happens is that the consumers use the payment options that they use in their day-to-day life, and the younger demographic like to use Venmo, and Apple Pay and Google Pay – these are for the younger generations.
“It’s different from market to market, and state-by-state. We have entered 15 states now and are offering our payment options there. We are seeing a different perception of payment options there.”
Striplin also noted that peer-to-peer apps such as Venmo, Cash App and Zell appeal to a younger demographic, many of whom are using these as a primary banking vertical as opposed to traditional institutions such as Wells Fargo or Bank of America, in a US context.
“Typically older players tend to lean towards ACH, but credit cards across the board are widespread across all demographics,” he said.
“We tend to see older demographics skew towards ACH, especially when you’re entering checking numbers and routing numbers, that’s something they’ve used before and are familiar with.
“The younger generation has grown up with PayPal, so they have that setup and have their cash bank accounts, they don’t have to enter their information and it’s safe and secure.”
Greg Kirstein, Paysafe’s Vice President of Business Development for North America iGaming
Christopher Granger, Lottery & Gaming Lead, Visa Inc
