London, August 19, 2019 - In 2018, over 35 percent of online gaming payments were made through digital wallets, according to new data from global financial technology provider FIS (NYSE: FIS). The data from its recently acquired Worldpay merchant business indicates that the prevalence of smart phones, and availability of mobile applications, is enabling online gamers to embrace real-time payments and collection of winnings by betting on the go.
According to FIS' 2019 edition of the Global Gaming Payments Report, this trend is expected to soar by 2022, making digital wallets the preferred payment method for online gaming activities globally. Player demand for improved mobile gaming experiences has encouraged them to embrace those payment methods that can deliver a faster and more frictionless gambling process.
Alongside the improved user experience that digital wallets offer, additional layers of security provide greater protection for both players and operators, with encryption, tokenization, and device authentication helping to reduce fraud.
With Strong Customer Authentication (SCA) being a major legislative drive for merchants over the coming 18 months, there could be significant changes to payment processing, and how deposits work across online gaming in general. As a result, FIS predicts an increased demand and adoption of digital wallets such as Apple Pay and Google Pay, which satisfy SCA regulatory requirements.
As of 2018, gambling players in regulated markets across Europe, including France, Italy, Denmark and Germany have embraced alternative payment methods when placing their bets. While card-based deposits remain dominant for regulated online gaming in Belgium, Spain, and the UK, their share in this space shows signs of decline. FIS predicts that use of card-based deposits will fall by almost 10 percent across Europe by 2022.
In this digital era, speed can be an important factor to both players and gaming operators. Until now attention has tended to focus on how quickly players can place their bets with optimization centering on frictionless deposits. Increasingly, players are expecting a uniform payment experience across all touchpoints with the question of how quickly they can access their winnings becoming more prevalent. Over the next year, FIS expects rapid adoption of near real-time payout options, such as FastAccess funding from the Worldpay from FIS solution suite, which can reduce payout timelines by up to 2-5 days.
'The increasing draw of mobile gaming has made instant access to winnings essential for a complete player experience. Quick payouts have now become a reality via FastAccess funding enabled by Visa Direct. This year is sure to see further rollout of this service across Europe and adoption across the online gaming community,' said Steffan Jones, VP Commercial Development, Gaming and Trading at FIS.
'The upcoming implementation of SCA should also be a key priority for the gaming industry. With operators needing to be mindful that they are approving or declining the right payments at all times in a PSD2-compliant way without hampering the player experience. Digital wallets, especially those that include an additional layer of biometric authentication such facial recognition or fingerprint, could be an alternative for players and we expect to see increased take up of these payment methods within online gaming as a result.'
The complete 2019 edition of FIS' Global Gaming Payments Report can be accessed here.
About the report:
The Global Gaming Report was compiled using a combination of internal expertise, research and third party vendor data, drawing upon Worldpay from FIS' decades of experience in providing global gaming eCommerce solutions to hundreds of gaming operators in multiple countries. Details on the methodology are available on page 5 of the report.
The Worldpay from FIS solution suite is part of the FIS Merchant Solutions business, which serves merchants and eCommerce providers around the world. FIS acquired Worldpay on July 31, 2019.
FIS is a global leader in technology, solutions and services for merchants, banks and capital markets that helps businesses and communities thrive by advancing commerce and the financial world. For over 50 years, FIS has continued to drive growth for clients around the world by creating tomorrow's technology, solutions and services to modernize today's businesses and customer experiences. By connecting merchants, banks and capital markets, we use our scale, apply our deep expertise and data-driven insights, innovate with purpose to solve for our clients' future, and deliver experiences that are more simple, seamless and secure to advance the way the world pays, banks and invests. Headquartered in Jacksonville, Florida, FIS employs about 55,000 people worldwide dedicated to helping our clients solve for the future. FIS is a Fortune 500® company and is a member of Standard & Poor's 500® Index.
To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).