Payments

ASTROPAY: PLANTING OUR FLAG IN EUROPE

COMPANY CEO MIKAEL

LIJTENSTEIN underlines how AstroPay will be drawing upon its experience in emerging markets to fuel further expansion across Portugal, Spain and the UK

BY ERIN GALLAGHER

Over the last 12 years, AstroPay has made its name known across emerging markets as a go-to provider of payment solutions. But at the end of 2021, the company announced that it would be planting its flag in the European market by expanding into Portugal, Spain and the UK.

Lijtenstein is confident that AstroPay can steal a march on its rivals with the right focus on the UX and innovative payment methods. Speaking to SBC Leaders, the CEO began by outlining some of the main challenges associated with the European market, before explaining how AstroPay is overcoming these hurdles.

SBC: It’s been a few months now since AstroPay strengthened its presence within the European market. What have been the key challenges that you have faced during your European expansion?

ML: 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 on 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.

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

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.

SBC: How has AstroPay overcome these hurdles?

ML: We took the time to fully understand the market, working closely with clients and partners to create a unique solution.

We always try to be 100% compliant

WE ALWAYS TRY TO BE 100% COMPLIANT WITH THESE PRINCIPLES: TO BE FAST, EASY, AND SECURE THIS IS WHERE OUR EXPERIENCE COMES AS AN ADVANTAGE

with these principles: to be fast, easy, and secure. 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.

SBC: As a company, you have a wealth of experience in emerging markets. Is this still a main focus for

you? Or has your attention shifted more towards mature markets?

ML: 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,

WE ARE ALREADY LOOKING AT THE NEXT EUROPEAN COUNTRIES TO ADD INTO OUR PORTFOLIO AND WE HAVE A VERY AMBITIOUS ROADMAP

as a one stop solution for the needs of our international clients, and Europe is a key market for us to achieve that.

SBC: Have there been any lessons that you have taken from your previous experiences in emerging markets that have guided your approach to the UK, Spain and Portugal?

ML: 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

THE USER WHO TRIES ASTROPAY ONCE, CONTINUES TO CHOOSE US OVER TIME

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.

SBC: Given your strong foothold in Africa, Asia and Latin America, what would be your advice to those looking to expand into these regions?

ML: For those who want to succeed in these markets, we would advise partnering with a company that has the expertise in these regions and 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 recognized by the customers.

WE WANT TO BRING OUR SOLUTIONS AND SERVICES GLOBAL, AS A ONE STOP SOLUTION FOR THE NEEDS OF OUR INTERNATIONAL CLIENTS

SBC: What do you have planned for Europe in 2022? Any further expansion on the horizon?

ML: 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. •

NEW AFFORDABILITY CHECKS: WHY THEY MUST BE FAIR FOR EVERYONE INVOLVED

WITH THE IMPENDING REVIEW of the 2005 UK Gambling Act, there are calls from Parliament to impose more stringent affordability checks. This is only exacerbated by the UK facing a ‘cost of living crisis’, as households face immense economic pressures not seen in over 50 years

BY CALLUM WILLIAMS

With the boom of the online gambling market, it has been long thought that the 2005 Gambling Act appeared outdated. Mobile phones and digital platforms have now become the de facto home for betting companies, intertwining online payment platforms with betting and casino apps, creating seamless ventures for customers to place money into their accounts.

But while there is a regulatory

framework in place to protect the customer from potential gambling harm, betting operators and payment providers have often placed a social responsibility upon themselves to help shield people from problem gambling.

Andrea McGeachin, Chief Commercial Officer at Neosurf, has significant experience in affordability assessments from her previous role at Wonga. In her role at Neosurf, McGeachin has helped serve customers with a voucher-based payment system.

By introducing such a payment system, Neosurf has been able to spot changes in behavioural patterns - a key indicator for when a player may be susceptible to problematic gambling. This data, she said, should be used as a means of supporting those who are at risk.

“The world of gambling is ancient, we are not here to judge people’s gambling,” she told SBC Leaders. “However, we’re here in the online gambling world responsible to see patterns that are a potential issue and very much to be there to support people who get in touch with us.”

One suggestion to monitor such behavioural patterns is the introduction of more stringent affordability checks - an idea supported by many MPs. However, checks which could seem too intrusive can create an unbalanced relationship between operator and customer.

A particular concern raised by some in the gambling industry is that strict affordability checks could drive punters in the direction of offshore black market operators, with a high chance of accelerating problem gambling cases.

This was a concern which appeared to be reflected in the findings of a 2021 YouGov poll, which showed that 51% of respondents believed fresh affordability checks will lead to more problem gambling. On the contrary, only 4% thought that strict affordability checks will result in a reduction.

And whilst UK regulators mull

THE WORLD OF GAMBLING IS ANCIENT, WE ARE NOT HERE TO JUDGE PEOPLE'S GAMBLING

Andrea McGeachin, Chief Commercial Officer at Neosurf

over deposit limitations, Sweden has already laid the groundwork of their own affordability check procedure. The Swedish Gambling Inspectorate, Spelinspektionen, launched temporary limitations on online betting in the wake of the COVID-19 pandemic.

Bettors in Sweden were limited to a SEK 5,000 deposit, as Spelinspektionen reported that players believed that the limit was too low. Despite this, the regulator stated that the limitations were ‘broadly supported’, with 60% of bettors backing the temporary measures.

So while the government and UK’s gambling regulator are yet to confirm what we can expect when it comes to affordability, McGeachin highlighted some of the work that Neosurf is doing.

She commented on how the company is handling affordability checks as a way to keep the customer protected: “We measure everything with volume, value and velocity. The anonymous voucher world is under controls that limit spend to £/€50 - and yet we work hard to deliver an amazing user experience that prevents such regulatory rules from decreasing deposit conversions.

“The balance is to enable smart conversions, keeping the player happy with their use of Neosurf for safety and privacy and still ensure the use of digital data sharing and execution of appropriate communications where necessary.”

But as a payment company, McGeachin underlined that there is only so much support that Neosurf can provide. Despite maintaining a strong sense of social responsibility, most of the responsibility is placed on the betting operators themselves.

“The challenge is how to deliver the right required information to the operator who needs it, also ensuring the terms and conditions of data sharing are not compromised,” McGeachin stated.

“Working with DoTrust and Prinsix supports us to develop an ability to be ahead of the needs and ensure we are able to support the social responsibility role we all have.”

Data sharing is critical for companies such as Neosurf and DoTrust to be able to broaden an affordability check for a player and provide as concise a check as possible.

Betting operators have also strengthened their efforts to promote safer gambling significantly in the past several years. There are also problem gambling charities such as GamCare and software companies like Gamban that provide critical support which can block all gambling sites to help problem gamblers.

However, all parties must be unified in providing a balanced and coherent plan for affordability within the gambling industry. This hasn’t been evident in recent weeks, as Labour MP Carolyn Harris has described talks with some of the leading gambling operators as descending into “playground name calling”.

It appears that on the surface, regulators and operators are far from being on the same page. The Racing Post recently revealed that the government’s intended affordability checks could cost the racing industry more than £100m a year, and in doing so “kill racing stone dead”.

Should the government decide to enact more stringent affordability checks, gambling operators and payment service providers may have to completely overhaul their already built-in checking systems.

McGeachin hopes that the review

WE MEASURE EVERYTHING WITH VOLUME, VALUE AND VELOCITY THE BALANCE IS TO ENABLE SMART CONVERSIONS, KEEPING THE PLAYER HAPPY

“looks at the right things for the right results”. She continued: “Placing controls without fully grasping the intricacies of day-to-day player habits is something that can have a very negative result.

“I say my hope is that smart thinking and open discussion can help keep online gambling smart, legal and control bad operations but support the people who really need it well… together.”

Charles Cohen, Founder and CEO of DoTrust, recently spoke with SBC about the “cost of living crisis” in the UK. Cohen highlighted that the gambling industry may take a hit as a result, with increased pressure on betting operators to adjust to changing bettor behaviours.

“Previous recessions have shown that while betting customers are unlikely to stop gambling altogether, they are likely to cut down on their spend,” stated Cohen.

“That is likely the situation in the coming months; with consumers having less money in their pockets, the potential is there for spending on gambling to take a hit.

“Further, when consumers do gamble they will also be looking more clearly for value, whether that is in terms of the product mix, wager type of bonuses and rewards. So, the price rises, the less money there is to go around, operators have to work harder to attract the money that is available and margins necessarily narrow.”

What has become clear is that government officials and betting operators will have to come to some form of resolution to find the best way to handle affordability checks within the gambling industry. Whilst safer gambling is always a priority for operators, alternative measures should be met with open discussion as opposed to complete dismissal.

CUSTOMERS ARE UNLIKELY TO STOP GAMBLING ALTOGETHER, THEY ARE LIKELY TO CUT DOWN ON THEIR SPEND

Likewise for regulators. Government officials must be wary of the possibility that stricter affordability checks may drive the customer offshore into the black market. Dialogue between the two should be balanced, offering a new alternative that benefits the customer and operator, all whilst being able to gamble within their means. •