Since the beginning of the pandemic, e-commerce has grown dramatically, and the iGaming industry is of course part of this trend. As an online betting platform, to succeed in an increasingly competitive market, you must take into consideration the new expectations of your players and optimize your conversion rates.
Growth that brings new challenges
In 2021, the GGR (Gross Gaming Revenue) of the online gaming market in Europe is expected to reach €36.4 billion, up 19% compared to 20201.
How can the iGaming industry maintain this growth? One of the keys lies in the optimization of payments, which must be considered to transform them into a conversion lever:
- Acceptance
- Processing
- Fraud management
- Chargeback management
Here are more precisely the key points that will allow you to optimize your performance.
PSD2 compliance and exemption management: the number one ally of your performance
PSD2 (Payment Services Directive 2) has strengthened the requirements for strong authentication, and its application has been implemented gradually in most European countries.
So, you need to be able to manage these requirements to minimize the impact on your business while maintaining a consistent customer experience—a task that’s far from easy!
The essential success factor is to optimize your use of strong authentication exemptions. For this, you must have both excellent management of your fraud rate and control of your frictionless requests (path without strong authentication), so that they are as relevant as possible. Working with your payment service provider is key to achieving these goals.
Analyzing issuers’ responses in case of refusal
Do you receive many refusals from issuers to your frictionless requests?
Analyze how your transactions are sent and your return codes. Are requests for exemptions well conveyed and, above all, justified? Issuer responses allow you to understand why a transaction failed.
The Soft Retry, an example of optimization
Be aware that in some cases you can retry failed transactions. Payplug has developed a “retry” feature, which avoids losing the transaction. It applies in the following cases:
- difficult migration on specific markets: as an exception,the regulator allows merchants and payment service providers to accept direct authorization for transactions on specific markets where PSD2 migration is difficult, such as Germany or Italy.2
- When the interbank 3DS server is not available.
On May 3, 2022, Payplug exceeded 1 billion euros saved for all its customers, thanks to this feature3!
FastPass, a game-changer for your conversion
Thanks to a full coverage of the entire payment value chain, Payplug has developed a direct route between acceptance and issuer authorization to maximize your frictionless requests (20% of consumer transactions in France).4 This solution, called FastPass, guarantees optimization of frictionless transactions from BPCE holders.
We get 95% acceptance for our FastPass customers on their BPCE flows!4
“Payplug is the payment partner always by our side to provide the necessary support and guidance, help us improve our users’ payment experience and regularly releasing new innovative features to help us resolve the challenges we face.
Recently, in this new PSD2 context, they have released FastPass, a unique feature maximizing the acceptance of our frictionless transactions request which we will be testing soon as we believe it will facilitate our players’ payments while maintaining the highest security standards.”
Ana Stef, Group Head of Payments, Netbet.fr
Conclusion
Your payment performance is not just a matter of chance. You must optimise your strategy across the entire payment life cycle: acceptance, processing, fraud management, and post payment management. And we can help you do that!
To find out more, discover our white paper "iGaming: 4 key drivers for your payments' performance":
1Source: European Betting and Gaming association – “European online gambling,” key figures for the 2021 edition
2Source: Payplug figure, February 2022
3Source: Payplug, the result obtained between October 2020 and May 3, 2022
4Source: Groupe BPCE figures 2021
