It is an unsung part of the gambling industry that largely goes unnoticed by the individual player holding an iPhone; yet it is the thing that has to happen at the end of the person’s decision to bet – and the most important part of any transaction – payment. In the gambling industry, payments are a process that few customers think about until it stops being slick and becomes difficult, thus leading to the loss of players willing to use a platform – due to the faff of having difficulties at the final stage.
In the LatAm market, payments are now the focus of gaining market share. Legalised sports betting has come to the continent and it has been met with widespread enthusiasm from players across the board.
The ease of making transactions is seen as a huge plus in the fast-growing regions, as each operator wants to offer players the smoothest and sleekest experience possible.
Gambling Insider takes a look at gaming payments companies operating in the LatAm market and sat down with our Lawrence Levy, CCO LatAm to explore LatAm gaming markets and what the biggest challenges are for payments businesses in the region. Lawrence gives his insights on the state of the market. In talking about the speed of growth in the region, a trend that a significant portion of the industry has its eyes on, Levy highlighted several salient points in his comments:
GI: How quickly is the payments market expanding in the Latin American region?
LL: The payments market is currently undergoing rapid and significant growth. The surge in digital payments adoption can be attributed to various factors, including increased internet and smartphone penetration, a rise in e-commerce activity, and the expanding middle class. As a result, there has been a substantial increase in the number of individuals utilizing digital payment methods such as mobile wallets, online transfers, and alternative payment solutions. It’s worth noting that while the market’s expansion is remarkable, it still retains its unique nuances.
At OKTO, we recognize the importance of deep localization to effectively address the diverse needs and preferences of customers in the region. That’s why our payment aggregation solution is designed to offer a wide range of local payment methods, providing a flawless customer experience with the highest quality service. We understand that operators in Latin America need solutions tailored to their requirements, and our seamless integration process through a single API meets this need as well. This advantage is especially beneficial for operators operating in multiple markets within the region. In addition, by combining our solution with Cross-Border services, we empower operators to achieve growth and success regardless of their location.
GI: How are player preferences different in the LatAm market?
LL: Player preferences in Latin America can vary from country to country. One notable difference is the high reliance on cash-based transactions in certain parts of Latin America. Cash is still widely used and preferred by a significant portion of the population, especially in more rural areas. However, we are seeing a shift towards digital payment methods, particularly among the younger and urban populations. Of course, this depends on the region. The convenience, security, and access to a wider range of goods and services offered by digital payments are becoming increasingly attractive. It’s essential for businesses to understand these nuances and provide a diverse range of payment options to cater to different customer preferences in the region.
This is a top priority also for us, to secure multiple local payment options for our operator partners. Our focus is on delivering end-to-end solutions that create seamless and user-friendly experiences. Our team emphasizes speed and ease of transactions to ensure that users can make payments quickly and effortlessly. The fewer steps per transaction, the better. Moreover, we pay strong attention to security, implementing robust measures to safeguard users’ sensitive information. To further enhance the customer experience, we maintain a dedicated local customer support team that is available 24/7. This team possesses localized industry expertise and promptly resolves any queries or concerns with the highest quality of service.
GI: How crucial are speed and ease of deposits in customer retention?
LL: Speed and ease of deposits play a critical role in customer retention in the Latin American market. Customers expect seamless and efficient payment processes, particularly when it comes to depositing funds into their accounts. In an era where instant gratification is the norm, delays or complexities in depositing funds can lead to frustration and potential customer churn. Offering fast and hassle-free deposit options not only enhances customer satisfaction but also instills a sense of trust and reliability in the brand. It is imperative for businesses operating in Latin America to prioritize speed and ease of deposits to ensure customer loyalty and long-term success and this is why we, here at OKTO, place it at the top of our list of priorities. We understand this critical need and continuously work towards providing seamless and efficient deposit options to enhance customer satisfaction.
GI: Is the payments market getting more competitive in LatAm than other regions?
LL: Certainly, the payments market in Latin America is experiencing a significant rise in competition. As the region undergoes rapid digitalization and the adoption of digital payment solutions continues to expand, both local and international players are entering the market to take advantage of this opportunity. This influx of competition is fueling innovation, resulting in the introduction of new payment technologies, improved user experiences, and more competitive pricing structures. Moreover, regulatory changes and collaborations between financial institutions and fintech companies are further heightening the level of competition.
While other regions may also witness increasing competition, the Latin American market stands out due to its unique characteristics and growth potential.
Several countries, including Brazil, Chile, Peru, and Mexico have become particularly attractive and competitive landscapes. The combination of a large population, increasing digital adoption, and evolving consumer preferences create fertile ground for companies looking to establish themselves in the Latin American market.\
At OKTO, we recognize the intense competition in the region and continuously strive to stay at the forefront of innovation. By offering advanced payment solutions, exceptional user experiences, and strategic partnerships, we aim to differentiate ourselves and provide added value to our customers and partners in this highly competitive environment.