Paysafe Study Claims that Online Banking Can Boost iLotteries

Paysafe, a leading online banking company, has revealed that modern lottery players are moving away from standard payment methods to digital payments. This study was conducted on the Pan-European lottery industry and the corresponding consumer behavior trends.

The company says new payment methods are launching in the e-commerce industry, and the iLottery sector is no exception. To meet the demand, lottery operators must offer alternative payment options, like:

• Cryptocurrencies like Bitcoin, Litecoin, Dogecoin, USDT, etc.
• Digital wallets like PayPal, Skrill, and Neteller
• Mobile wallets like Apple Pay, Google Pay, and Samsung Pay

According to Paysafe, the payment options that modern gamers use are rapidly changing. However, the report maintains that credit/debit cards like Visa and Mastercard are still the primary forms of online payments for players seeking to play the online lottery.

Paysafe has advised regulated lottery operators to capitalize on the opportunities that come with new payment methods by delivering an "uninterrupted and effortless" online banking experience. Offering varying payment methods is an excellent way for operators to increase their customer reach. The rising population of Europeans who are unbanked/underbanked can significantly benefit from online cash solutions.

According to a 2021 study by the World Bank, 3.6% of the EU population is financially excluded. While this is an improvement from the 8.2% in 2017, it translates to at least 13 million unbanked residents.

As expected, those who prefer online cash may find the security benefits appealing. Paysafe, which owns Paysafecard, pointed out that in the current rampant cyber-attack environment, people continue to complain of stolen identities on their credit cards and emptied bank accounts. This makes e-wallets and other online payment methods more attractive.

Paysafe added:

"It's also important to remember that for some, there is still a stigma around playing online lottery and instant win games but doing so with cash provides the anonymity they are looking for as online cash payments do not show up on a bank statement. For others, it allows them to better control their spending online, especially when it comes to lottery draws and games. It's also worth noting that plenty of players still purchase tickets at retail venues with cash, so it's important that operators bridge the gap to their iLottery offering and allow these players to purchase tickets online with cash also.”

The document is ended with an assessment by highlighting five critical advantages for European lottery operators to consider when adopting online payments services:

• Businesses can widen their reach to include cash players.
• Entice retail customers to their online platform and provide exclusive lottery games and products.
• Provide customers with fast, simple, and secure payments.
• Reduce the risk of chargebacks and protect existing payment methods from cannibalization.