Frustrations with slow or declined deposits and withdrawals lead to app abandonment or high rates of customer service use—both of which are costly for operators

SANTA CLARA, Calif.–(BUSINESS WIRE)–PayNearMe, provider of MoneyLineTM, the modern and reliable payments platform designed to manage the complexities of iGaming and sports betting, today released a consumer study titled,iGaming Payment Optimization is Key to Player Retention.” The study is based on interviews and an online survey, conducted by Betting Hero, of 231 iGaming and online sports bettors in 5 states with varying levels of play frequency. Results revealed nearly one-third of respondents (29%) experienced problems funding their accounts or withdrawing money. Those problems often led to either app abandonment or calls to customer service—both of which reduce operators’ already thin profit margins.

The most common deposit and withdrawal challenges faced by players surveyed can be attributed to a poor user experience, resulting from an attempt to use an unavailable payment type or one that has been inadequately implemented.

As a result, players are quick to switch apps when they become frustrated or enticed by the promise of fast withdrawals by a competing operator. To retain players, operators must provide a user experience on par with the ecommerce industry—emphasizing a fast and easy payment experience and the ability to transact using a variety of payment types.

Key Findings:

  • 22% of respondents cited UI, UX or technical issues as their biggest day-to-day frustration
  • Respondents said they would delete or abandon an app if the site is glitchy or non-responsive (44%), it takes too long to fund the account (32%), the sign-up process isn’t user-friendly (23%), or the site lacks their preferred payment types (18%)
  • 29% of surveyed players reported problems funding accounts or withdrawing money
  • 13% of respondents with deposit issues and 26% with withdrawal issues said the app lacked a payment method they were willing to use
  • 23% of bettors surveyed who couldn’t deposit funds expressed frustration by leaving the app and not returning; 21% of those with a funding issue and 24% with a withdrawal issue reached out to the app’s customer service department for assistance
  • 17% of respondents prefer Venmo as a funding method; 9% use PayPal and 3% use Apple Pay
  • 13% said they would leave an app if they didn’t feel comfortable providing their personal financial information

“Though iGaming and online sports bettors tend to be tech-savvy and familiar with mobile payments, too many are encountering deposit and withdrawal issues, which is contributing to operators’ app abandonment problem,” said Anne Hay, CMO and Senior Vice President of Marketing at PayNearMe. “Operators need to consider how they can leverage technology to streamline deposits and withdrawals, provide a better user experience and educate about any restrictions that could block payment. It’s crucial for retaining players in this highly competitive business.”

Costly Consequences for Operators

Nearly half (47%) of respondents with funding issues and 38% of those with withdrawal issues said they were able to solve the problem independently. However, that means too many players are either contacting customer service (21% of those with funding issues and 24% of those with withdrawal issues) or discontinuing use of the app altogether (23% of respondents who couldn’t deposit)—both outcomes that can be costly for operators.

“When a player is forced to call customer service due to functionality issues, it impacts operators’ bottom lines,” said Hay. “Every support call comes with associated expenses. Not only do these issues cause operators to incur costs, but 44% of survey respondents indicated they would delete or abandon an app if it exhibited glitches or non-responsiveness, causing the operator to lose that customer entirely.”

Successful Deposits and Fast Payouts are Crucial for Player Retention

Our research revealed that the speed of withdrawals continues to be one of the biggest factors in whether a player sticks with an iGaming app. iGamers and online sports bettors want the security and ease of being able to cash out quickly. In fact, 49% of respondents overall and 60% of those who experienced payment issues said they would be very likely or likely to switch to an alternative app that promised faster withdrawals.

Players also care about being able to use their preferred payment types, including alternative payment methods such as Venmo and PayPal, for deposits and withdrawals. Respondents said they would delete apps that are missing the payment types they want to use (17%) or where those payment types are often declined (17%).

“Understandably, players expect to use the same payment methods they use day-to-day and should be able to count on them going through without a problem. Here’s where working with a payments technology provider experienced with offering popular payment types can make a huge difference,” said Hay.

Media Resources:

  • Download the full report for a deeper look at the findings
  • Download report infographics and charts of key data points

About PayNearMe

PayNearMe develops technology to facilitate the end-to-end customer payment experience, making it easy for businesses to manage and accept payments. Our modern, flexible and reliable platform is built from the ground up to increase engagement, improve operational efficiency, and drive down the total cost of accepting payments.

MoneyLine™, powered by PayNearMe, simplifies end-to-end money movement for iGaming and sports betting operators. It delivers the most reliable payment experience across key touchpoints with players, including cashiering, deposits, payouts, cash at cage, engagements and more. With one platform and one integration for key deposit and payout types, operators can reduce costs, get to market faster and make the entire payment experience seamless for their players. Player insights within the platform deliver a holistic view of key player and payment metrics.

PayNearMe has been servicing the iGaming market since 2013 and is currently active in 25 regulated gaming markets in the U.S. The company processes cash deposits for 16 of the 17 largest online casinos in the U.S. and 9 of the 10 largest U.S. operators, including BetMGM, TVG, PointsBet, FanDuel and Caesars Sportsbook.

PayNearMe understands the importance of responsible gaming. We support our partners and affiliates in their effort to provide a safe environment that adheres to applicable responsible gaming requirements in the market.

PayNearMe has enabled cash payments through our proprietary electronic cash network since 2009, and today is accepted at more than 60,000 retail locations in the U.S.

To learn more about PayNearMe, please visit www.paynearme.com. Follow PayNearMe on Twitter, LinkedIn and Facebook. The PayNearMe service is operated by PayNearMe MT, Inc., a licensed money transmitter.

About Betting Hero

Betting Hero, is the leading customer acquisition, retention, and development company in the legal North American online gambling industry. Founded in 2018, Betting Hero started as a street team helping customers at New Jersey tailgates sign up for newly legalized sports betting apps. Betting Hero now partners with top sports betting and online gambling operators across hundreds of venues spanning North America to help thousands of consumers enjoy their experience betting online. Betting Hero has helped over 450,000 customers at events register, deposit, and bet at legal North American online sportsbooks and casinos.

Betting Hero provides leading operators and suppliers with best in class support through three complimentary business units: Betting Hero Activation, Betting Hero Research, and Betting Hero Hotline.

Betting Hero’s research arm partners with operators, technology suppliers like geolocation, payment, and games providers, to analyze consumer sentiment and insights, as well as pressure test product features and integrations in real-time across North America. For more information about Betting Hero, please visit BettingHero.com.

Contacts

Victoria Penn

512-564-0706