Martyn Hannah, Co-founder of online casino comparison site, Comparasino, says that Visa and Mastercard are the preferred payment options among UK players, but Instant Banking is likely to take the crown in the years ahead.
Debit cards are by far and away the most popular payment method for online casino players in the UK. Why? Because they are widely available, easy to use and trusted. Because of this, the vast majority of brands have Visa and Mastercard in the cashier.
But debit cards do have some drawbacks, especially when it comes to payout speed – more and more players are demanding instant payouts, and this is something that Visa and Mastercard can struggle to facilitate. Others also prefer the convenience of mobile wallets such as Apple Pay when playing from smartphones.
Does this mean the dominance of debit card casinos is on the slide? Not right now. But it does mean that operators are having to rethink their cashiers to ensure they are meeting changing player preferences and taking advantage of the acquisition and retention opportunities payments provide.
Before looking at the payment methods that might ultimately challenge the dominance of Visa and Mastercard, let’s first take a closer look at why they have become the go-to for UK players.
Transaction approved: Why Visa and Mastercard are popular
Most people use debit cards for making purchases (whether in person or online) and making a deposit at an online casino is just a type of purchase. For most players, it is the easiest way to pay to play, simply transferring funds from their bank account to the casino via their Visa or Mastercard.
The availability of Visa and Mastercard is another factor in the popularity of debit cards – they are offered by virtually every licensed online casino in the UK.
Then there is the ease of making debit card payments. Players simply input their card details and decide how much they wish to deposit. Some casinos then use something called tokenisation to allow for one-tap payments for subsequent transactions.
The trust factor that comes with Visa and Mastercard should not be downplayed, either. Players are still often wary about making payments to online casinos and depositing with a reputable, regulated payment provider gives some level of reassurance and confidence.
Players also know that if they deposit with Visa or Mastercard, they’ll be able to claim the welcome bonus, too. Throw in the fact you can make low minimum and high maximum deposits (appealing to casual players and high rollers respectively) and it’s easy to see why debit cards are so popular.
Transaction declined: The drawbacks to debit cards
Part of the reason debit cards are so popular at online casinos is that there are so few drawbacks to using them. That said, there are a few.
While they are easy to use, they are not quite as convenient as more modern options such as Apple Pay and even Instant Banking (provided by the likes of Trustly, TrueLayer and Vyne) because users still have to input personal and card details.
But perhaps the biggest drawback is transaction speed. While deposits are instant, it can often take several working days for Visa and Mastercard payouts to process and for players to receive their winnings.
This is not always the case – one casino’s head of payments recently told me that Visa withdrawals can be almost instant (so long as the player has been verified) but Mastercard usually takes at least 24 hours.
This makes it hard for debit cards to compete with digital and mobile wallets and of course instant banking which for me is the future of online casino payments in the UK.
Withdrawals in an instant
In fact, the biggest threat to debit card dominance is instant banking.
It works by directly connecting the player’s bank account and the online casino’s bank account via Faster Payments, the instant payment rail used in the UK.
When the player comes to make a deposit, they are taken to their mobile banking app (making it perfect for those playing from mobile) where they simply approve the transaction.
The process takes just seconds with the payment made instantly. The same works in reverse when making a withdrawal – the payment is sent from the casino’s bank account to theirs instantly.
Instant bank offers many of the benefits of debit cards – it connects to your bank account, is safe and secure and you can use it and still claim the bonus – but is easier to use while offering instant payouts.
As more players become aware of it and the upsides it offers, the demand for instant banking is only going to rise.
Savvy operators will look to get ahead of the curve and partner with instant banking providers today.
If they don’t, they will lose ground to their rivals that do.
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