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Paysafe’s recent study, “All the ways players pay,” highlights the critical role of payment options in online sports betting. The research, drawing on responses from 3,000 sports bettors across multiple regions, including six U.S. states, Ontario in Canada, the U.K., France, Germany, and Italy, underscores bettors’ demand for quick payouts and diverse payment methods. This study, reflective of Paysafe’s fresh brand identity, places a spotlight on how payment preferences influence both the choice of sportsbooks and player loyalty.
One major insight from the report is the shift in player loyalty. While 55% of players report having a preferred sportsbook, this marks a decrease from 63% in the previous year. This decline is evident even in the U.S., traditionally seen as a brand-loyal market, where the number of players with a favorite sportsbook dropped to 64% from 69%. Interestingly, in Ontario, loyalty is on the rise, with 50% of players now having a preferred brand, up from 45% last year. This suggests a maturing market where players are beginning to form stronger affiliations with specific brands. Conversely, France stands out for its low level of sportsbook loyalty, with 72% of players not favoring any particular brand.
The study also sheds light on the payment preferences of bettors, highlighting the growing popularity of mobile and digital wallets. Approximately 28% of players now prefer using mobile wallets like Apple Pay, a preference that is particularly strong in the U.S. and the U.K. due to restrictions on credit card deposits. Despite this, credit cards remain a popular choice among bettors, with a notable preference in New York and Ontario, and even dominating in France where almost half of the players prefer using credit cards for wagering.
The report also points to the significant role of direct bank transfers and ACH, rivalling credit cards in global popularity and surpassing both credit and debit cards in markets like Germany and the U.S. This highlights the importance of offering a variety of payment methods to cater to diverse player preferences.
Digital wallets stand out as the most popular alternative payment method (APM) for wagering, but the report advises operators not to overlook the value of online cash or eCash solutions, such as paysafecard or Paysafecash, especially in markets with a strong cash culture like Germany and the U.S.
Localization of payment methods emerges as another critical factor, with a preference for local payment methods (LPMs) being notably higher in North America. This is particularly evident in Ontario and the U.S., where established LPMs like Interac e-Transfer and Venmo are popular. This trend underscores the need for sportsbooks to incorporate local payment solutions to meet the expectations of their customer base.
Fast payouts emerge as a top priority for bettors, with 37% of respondents citing it as their main consideration when selecting a sportsbook, outpacing the importance of brand trust and competitive odds. The availability of preferred payment methods and smooth deposit processes also play a significant role in attracting bettors, highlighting the necessity for sportsbooks to offer a range of payment solutions.
The report further reveals that an impressive 78% of bettors view the payment experience as crucial to their decision to stick with a sportsbook. This sentiment is particularly strong in Italy, New York, and Germany, indicating the significant impact of payment convenience on customer retention.
In terms of payment preferences, the landscape is evolving. While debit cards remain popular globally, digital wallets are gaining ground, especially in Italy and Germany, where they are the preferred payment method for more than half of bettors. Digital wallets are notably popular among VIP bettors, who appreciate the ease of managing funds across multiple sportsbooks.
The study also notes a niche but growing interest in eCash and local payment methods (LPMs), suggesting a diversifying payment landscape. Meanwhile, confidence in transactional security at sportsbooks is on the rise, although there remains a portion of players who are less confident or unsure.
Zak Cutler, President of Global Gaming at Paysafe, emphasizes the strategic importance of optimizing payment offerings for sportsbook operators. He said:
“Our latest research clearly indicates the value of payments to online sportsbook operators at all stages of the player experience. Operators that optimize their payment offering will gain a competitive advantage when starting their brand’s relationship with new bettors. Given the correlation between the payment experience and brand loyalty, operators can maximize player retention by getting payments right. This includes upgrading their cashiers to cover all possible payment choices to meet evolving transactional expectations.”