The astronomical rise in real-time payment volumes is not new news however the growth is continuing to outperform forecasters’ best efforts. Whilst we await the 2022 numbers it is important to not forget that in 2021 there was a year on year growth of 64.5% with 118.3 Billion real time payments being made.
Of key interest to the Online Gaming community is the growth rate of 57% in Brazil and 33% in India coupled with the much anticipated launch of FedNow later this year due to really drive home real-time payments in the USA.
We have all long known that the ability to process payments quickly can help attract new and retain existing customers who are looking for a seamless and convenient gambling experience.
This all points to a huge opportunity for a gaming company to differentiate itself from its peers and offer its customers their payment method of choice, reducing a frequent objection and thus increasing conversion rates.
However online gaming and gambling companies (disproportionately compared with other industries) encounter challenges with a proportion of their users who seek to unfairly take advantage of the system for personal gain.
Real-Time payment processing offers up a unique challenge to all companies particularly during non office hours. Unlike with card payments when the transaction can be processed at a later time once all fraud checks have been completed, Real-Time Payments require instant decisions.
Up until now the solution is to perform automated fraud checks during the real-time payment process and implement a low risk threshold to protect from fraud. This leads to an increase in False Positives which in turn leads to customer insult, poor customer experience and decreased conversion rates.
The great news that I can share is that we at FERO have a solution that works before the payment methods are shown to the customer. Utilising our payment method optimisation engine and combining with our rigorous fraud detection tools we can accurately enhance the customer journey only for those genuinely good customers that want to use real-time payments.
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