Driving change in payment habits globally: Interview with Zak Cutler President Global Gaming, Paysafe

By Puja Sharma

Zak Cutler is a regulated U.S. online gaming executive with a proven track record in strategy and corporate development. Before Paysafe, he worked at both Jackpocket, an innovative app enabling players to buy state lottery tickets online, and DraftKings, where he was responsible for all product initiatives related to payment processing, U.S. compliance, and international expansion.

IBS Intelligence spoke with Zak about the trends driving worldwide payment habits.

What makes consumers change their payment habits?

We’ve conducted thorough research to gain a deep understanding of consumer payment preferences across global communities. Our primary focus has been on identifying the key factors and external influences that are currently driving changes in payment habits worldwide. Our global findings indicate that consumers are increasingly choosing payment methods that provide them with greater control. This trend is primarily driven by concerns related to the ongoing cost-of-living crisis and heightened demand for convenience, speed, and the protection of personal data.

The convenience offered by many new and emerging payment methods is particularly appealing to those seeking quicker and more efficient transactions. In fact, our latest Lost in Transaction research report showed that 69% of consumers who confirmed a shift in their payment preferences due to the cost-of-living crisis expressed a preference for digital wallets, while 61% favoured prepaid cards, and 60% chose online cash, or eCash. Furthermore, technological advancements and security concerns also play a significant role, as consumers increasingly adopt safer and more accessible options that allow for seamless transactions without sharing sensitive financial details.

Why are digital wallets and eCash the most convenient methods of payment today?

The convenience of utilizing a digital wallet or eCash solution is largely rooted in the inherent simplicity, enhanced security, and contactless functionality that has become familiar to many since the onset of the COVID-19 pandemic. Within the realm of sports betting, digital wallets provide players with a seamless and frictionless transaction experience. Reduced touchpoints enable players to make instant, secure deposits without sharing their financial information with the operator.

According to our latest ‘All the ways players pay’ research report, which surveyed online sports bettors in North America and the UK, 49% of British players expressed a preference for digital wallets due to their enhanced security. Additionally, a third of all global players surveyed favoured digital wallets for their ability to provide the fastest rate of withdrawals.

How is Paysafe different in payment offerings than its peers?

Paysafe empowers operators with seamless integration of traditional and alternative payment methods that cater to every player’s needs, including debit/credit card processing, digital wallets, eCash, and third-party offerings. With over 25 years of online payments experience, we connect businesses and consumers across 100 payment types in over 40 currencies worldwide. Delivered through an integrated platform, our solutions are geared toward mobile-initiated transactions, real-time analytics, and the convergence between brick-and-mortar and online payments.

How can payments help sportsbook operators drive player conversions?

In many ways, payments are the lifeblood of sportsbook brands, as they enable operators to acquire new customers, complete the onboarding process, and ensure players make their first deposit as well as continue to wager for the long term. A poor payment experience can leave a lasting impact on a sportsbook’s brand, as highlighted by our ‘All the Ways Players Pay’ research. Three-quarters of global players surveyed underscored the importance of their payment experience when deciding whether to continue wagering with a specific online sportsbook. Additionally, seven out of ten respondents stated that they are unlikely to return if the payment journey is anything less than smooth and seamless.

It’s for this reason that a player’s payment journey should be considered a priority for any sportsbook brand, especially if they want to attract and retain customers at scale. To meet players’ expectations and ensure their ongoing engagement, operators must offer a diverse payment stack. This entails providing customers with a range of choices, including traditional methods such as debit and, where permitted, credit cards, along with alternative payment methods (APMs) like digital wallets and online cash, or eCash.

How are modern payment solutions enhancing the convenience and speed of player deposits/withdrawals as sportsbook operators gear up for the NFL season?

The competitive nature of the iGaming industry often leads to high customer churn, as players are enticed by attractive bonuses offered by competing sportsbook brands, so efforts to keep players are key. Modern payment solutions have truly revolutionized the landscape of online sports betting, significantly enhancing the convenience and speed of player deposits and withdrawals, which is a great advantage for operators to seize upon in time for the NFL season. These advancements are pivotal in improving the overall user experience and driving customer engagement.

Consider the advantages of an expanded payment offering that also includes popular APMs such as digital wallets and eCash, which enable near-instant deposits. This means players can quickly fund their accounts, ensuring they don’t miss out on betting opportunities during peak NFL events. Overall, operators need to provide an unparalleled payment experience for their players, including a comprehensive suite of APMs in tandem with traditional payment options to create the most convenient and seamless journey possible.