Paysafe returned to ICE London this year to demonstrate its suite of solutions for both merchants and consumers and to present the industry with its latest report on the impact of 5G, which Chief Business Development Officer Daniel Kornitzer believes will unlock huge potential for mobile sports betting.
On top of showcasing its eCash products, Paysafecash and paysafecard, and its wallet solutions Skrill and NETELLER at this year’s ICE London, Paysafe also published a new report on 5G’s impact on sports betting that fueled debate both on the show floor and upstairs in the ICE VOX conferences.
As a leading specialised payments platform, Paysafe services both operators as merchants and players as consumers, which Chief Business Development Officer Daniel Kornitzer believes positions Paysafe as an important link between the two.
“We’re in a unique position where we can leverage technology to bring value to consumers and merchants, and really be the nexus behind the two,” he said. “For the operators, not only can we process transactions and increase conversion rates, but we can also help in terms of new customer acquisitions because we have the consumer angle as well.”
An important part of developing the technology to leverage that value is research. In Paysafe’s report, ‘The Evolution of Mobile Sports Betting: Assessing the impact of 5G on the online gambling industry,’ the research suggests that many players who enjoy placing bets feel held back by low speed mobile connections, particularly concerning in-play bets. Out of the players that foresee betting more frequently on mobile platforms with the arrival of 5G, 54 percent said they are likely to place more in-play bets.
“There is significant latent demand but connectivity is not great. Imagine you want to place a bet in-play on a player scoring a penalty kick, but by the time you’re ready to place it they’ve already taken the penalty and scored. It’s frustrating for consumers,” continued Kornitzer. “I think technology is a great enabler for providing better user experience for players. 5G will provide mobile users with high speed access even in sports stadiums, allowing them to make bets inplay with low latency.”
The report details that 41 percent of all players think it will be commonplace to bet in a stadium with the arrival of 5G, with 31 percent suggesting what is preventing them from doing it today is poor connectivity – a figure that rises to 51 percent for those betting more than once per week on average. Further, the figures show that 42 percent of those betting more than once per week would increase their in-play betting with 5G, and that 21 percent of those players would bet on events they’re not currently betting on.
“These figures confirm people have tried in-play betting in stadiums, but they are not crazy about the experience. But that’s changing with the advent of 5G, which in combination with ever smarter phones is a bit of a game changer,” explained Kornitzer. “When Netflix started they were shipping DVDs, because their technology wasn’t ready for streaming. Then when everyone got high-speed internet access, they moved from sending DVDs to streaming and the business exploded. 5G in stadiums will have the same impact, in conjunction with smartphones and edge computing.”
The statistics back up this assessment, with 55 percent of the 7000 customers surveyed across the US, UK and Germany impressed with the mobile platform’s ability to allow bets to be placed anywhere. On the payments side, Paysafe aims to complement this freedom of movement by providing customers with a freedom of choice. Whether its cash, card, crypto or an alternative payment method, it’s part of Paysafe’s philosophy to give customers the choice of which way to pay and let them lead the market. From their report published before ICE London, it is clear that different markets have different preferences, with 69 percent of all players in the UK preferring cards, while over in the US and Germany that figure is down to 34 percent and 30 percent respectively. In the US, 28 percent prefer alternative methods such as direct bank transfer, digital wallet or e-cash, which is a number that rises to 37 percent in Germany.
“At Paysafe we strive to make all the options available and let consumers decide,” concluded Kornitzer. “We’re not biased for or against any method, and we are looking to provide value not just for players but also for operators, who benefit from increased conversion rates when their customers have multiple payment methods to choose from.”