The problem with traditional gaming wallets

online gaming

E-wallets are an important part of the gaming payment ecosystem. Their reliability and convenience means it’s essential to give customers the option to use their preferred e-wallet to transfer funds to and from their gaming account.

However, while customers may use a variety of different e-wallets and payment apps, not all e-wallets offer gaming operators the same benefits. Yes, they all increase payment transaction rates, but some do a lot more than that.

Beating fraudsters

Bonus abuse costs gaming operators thousands of €s but is often viewed as a victimless crime. Serial abusers need scale to be profitable, involving multiple e-wallet accounts and multiple gaming accounts.

But what if an e-wallet account had to be paired with a device? If the e-wallet could only be used with one mobile device AND it was protected with biometrics so could only be used by one individual, the economies of scale are no longer viable.

That’s what we’ve done with our MuchBetter payment app. Fraudulent behaviour like bonus abuse is discouraged because it’s just not profitable when dynamic customer authentication methods alongside device pairing are implemented.

Lower payment processing costs

Most e-wallets charge operators a fee for each transaction – even when it’s a fraudulent transaction. Moreover, those fees are for transactions to and from the gaming operator regardless of how profitable they are. Net deposits over a month may be in negative figures, but the operator is still paying substantially for each transaction.

How can you reduce payment processing fees? Use an e-wallet with a Net-Deposit Pricing model.

You could reduce fees by 100%, in fact one of our operators said: “Switching VIP players to MuchBetter has been the most effective revenue generating strategy we’ve seen for a long time!”

How does it work? We only charge a monthly net-deposit fee which eliminates the negative effects of money churn. If a player has a successful month and you’re in the red, you don’t pay.

For an illustration of how this works, download our case study here.

Customer retention

When an e-wallet company operates using a traditional transaction fee model they don’t have a lot of incentive to help gaming operators be more profitable and successful. That’s where MuchBetter differs.

As well as developing our payment app to help operators drive profitability, we also work with operators to help their players choose the best ways to pay, build loyalty and customer retention.

Since our launch in 2017 we’ve developed many promotion campaigns on behalf of our operators to engage their top players and increase conversions. From loyalty gifts to bonuses (without the risk of abuse) we’re proactively supporting gaming operators. We may process payment transactions but our relationships with operators are far from transactional.

To find out more about our marketing support download this case study sharing how we boosted deposits and reengaged players for a European gaming operator. Click here.

If the e-wallets options you offer your customers don’t do more than facilitate transactions, perhaps it’s time to explore other options?

Read more by Paul Gent