Gambling operators could reach as many as 70% more customers if they extend their payment options to include carrier billing.
With sports betting on hold during lockdown, the gambling industry has lost a chunk of revenue. However, bored, stuck-at-home consumers are increasingly looking to play gambling games – typically lotteries, numbers and casinos – which could make up some of the shortfall.
The problem the industry faces is that by limiting the ways would-be punters can pay to play, igaming operators are missing out on as many as 70% of their potential new players.
According to a new Mythbuster white paper published by Telemedia, in conjunction with DIMOCO Carrier Billing and Melodi Media, carrier billing could provide an answer to the problem.
Research by Juniper Research suggests that as many as 70% of first time users of a service convert when offered carrier billing, while credit card only offers around 12% at best.
DIMOCO Carrier Billing research also suggests that DCB can bring a 10-15% increase in revenues to any digital content business.
Applying this to the igaming market could see many new players signing up to services while still in lockdown and partial lockdown.
“Direct Carrier Billing is relatively new to the betting industry, but it comes with such a great array of possibilities that it is starting to garner more interest from the iGaming sector,” says Beyza Orazova Business Development Manager, iGaming at DIMOCO. “Besides being convenient, seamless and instant, there are two other factors that turn this mobile payment solution from being a ‘nice to have’ option into a merchant’s strongest tool in conversion strategy and churn: it is a powerful tool for instant gratification and it is compliant with all payment regulations across Europe and beyond.”
Orazova adds: “By adopting carrier billing gaming operators can cater to all potential players without forcing them to provide any personal details, such as credit card or bank information, as well as offering a payment options to players that may not have cards or other ways to pay.”
Joe Arkley, MD of Melodi Media adds: “Gambling is going through substantial changes right now. With live sports banned – though slowly coming back recently with the Bundesliga and, last week, the UK Premier League, albeit behind closed doors – gambling companies have looked to other new format to fill the gap. There seems to be a huge demand for engaging games that are simple to play, encourage repeat usage and are fun. Moreover, mobile gambling is exploding and we have been working in mobile content for 20 years its part of our DNA.”
The Telemedia Mythbuster white paper – part of a series aiming to debunk the myths around carrier billing across a range of industries – not only showcases why igaming needs DCB, but also points out just how the two can work together to seamlessly create new revenue opportunities.
According to the white paper, DCB-powered gaming services offer instant customer acquisition and improved on-boarding, especially for 1st timers. DCB can also vastly reduce basket abandonment rates, as many potential players that just don’t want to use a payment card – at least at the point of initial engagement.
Anyone with a mobile phone and SIM can pay for services up to €300 pm and it’s quick, typically involving two clicks. Also, once trust has been established, it is far easier to migrate users to credit card – developing a significantly bigger and more profitable customer base.