PayNearMe study highlights importance of deposit and withdrawal process

PayNearMe has released a consumer iGaming study titled, “Understanding the iGaming Payment Experience: What U.S. Bettors Want in the Deposit and Withdrawal Process”. Based on a February 2022 online survey of 2,051 iGaming bettors aged 18 and older, the study revealed bettors feel that the transaction process for depositing and withdrawing funds takes too long, and they want more payment options to avoid disrupting play. Bettors say quick and seamless deposit and withdrawal experiences play an important part of their overall satisfaction, and whether or not they return in the future.

Key Findings

  • Nearly half of bettors (46%) say the ability to easily make a deposit is just as important as bonus offerings (48%) and access to their favourite online games (47%).
  • 52% of bettors have had issues with declined payments when signing up for new iGaming apps.
  • 17% of bettors who experienced payment trouble when signing up for new applications left and never came back.
  • The biggest pain point for players is that the process for making deposits (29%) and withdrawing funds (39%) takes too long
  • 33% of frequent bettors cite a lengthy deposit process as their biggest betting pain point, and 29% say it is a potential reason for abandoning a betting app.
  • Nearly 1 in 3 bettors (32%) say they would make larger deposits more often if they had access to their preferred deposit type.
  • 64% of bettors say having the option to make deposits via PayPal is important.
  • 49% of bettors say they would play and withdraw more often if they had access to their preferred withdrawal method.

Anne Hay, head of marketing and consumer research, at PayNearMe, said: “Our research found that nearly half of frequent players — those who place a bet at least once per week — say a positive payment experience is the single most important element of making bets online.”

“When more than half of players have payment issues during the signup process, operators need to consider how technology can be leveraged to create a simple and seamless deposit and payout experience.”

Players Desire More Deposit and Payout Options

Surveyed bettors identified more than 20 desired methods of making iGaming deposits. However, many of the options bettors are interested in using, such as CashApp (56%), Venmo (48%), Google Pay (47%), and Amazon Pay (46%), are not widely offered.

Hay said: “Offering a wide range of deposit and withdrawal options that bettors want not only improves players’ experiences, it can also drive increased engagement.”

“Nearly one in three players, including 47% of frequent players and 18% of casual players, would make larger deposits more often if their preferred deposit method was offered. That number increases when players’ preferred withdrawal methods are offered. Nearly half of players say they would play more and withdraw more often if they had access to their preferred withdrawal method.”

Beyond additional deposit and withdrawal options, bettors report that issues such as failed deposit attempts and long waits to collect funds impact their betting experiences and can ultimately be reasons why they abandon an iGaming operator.

Hay added: “Deposit declines are common — 52% of bettors have experienced declines, including 65% of frequent bettors.”

“Survey findings revealed that when bettors face payment barriers, operators risk permanently losing their business; 17% of bettors who experienced payment trouble when signing up for new applications left those platforms and never returned. Given the high costs of customer acquisition, operators can’t afford to ignore this touchpoint.”

“Players also cite long waits for payouts as a top pain point.”

“Our research revealed 48% of casual bettors and 31% of frequent bettors have had to wait 24 hours or more for withdrawals.”

Discomfort with Sharing Personal Information Is a Barrier

According to survey data, 25% of bettors say they feel uncomfortable providing personal information when making deposits. Casual bettors, in particular, can be hesitant to share bank details and other personal information until brand trust is established.

Hay said: “To create an experience where players feel safe depositing funds, operators can offer alternative and trusted payment options that players know and are comfortable using — such as PayPal.”

“Seeing as 64% of bettors say having PayPal as an option to make deposits is important, operators may want to provide similar trusted payment options at signup to ensure players can make deposits easily and without sharing additional bank or debit card information.”

As iGaming and sports betting becomes more mainstream, operators will need to attract more casual bettors in order to maintain growth rates and market share. Casual players will be more particular around the deposit and withdrawal experiences than frequent and early adopters. The ability for bettors to easily transfer funds in and out of the application will be an important factor in choosing an operator.

Adopting a modern iGaming payments platform provides bettors an ideal iGaming experience and operators a competitive edge.