ShareLocalizing payments involves adapting payment methods, currencies, interfaces, and systems to suit regional markets. Thanks to the widespread adoption of eCommerce, businesses are now interacting with customers from anywhere in the world. With this trend, Statista projects the worldwide e-commerce penetration rate to reach 25% by 2027, a 6% rise from 2022.
It hasn’t been different in the iGaming industry - as of 2023, gamblers can access gaming products through approximately 2,000 global online platforms. With the number of platforms rising, the demand for localized experiences has also increased.
Payment Methods Across Markets
Different markets prefer different types of payment methods. In Europe, e-wallets like PayPal, Skrill, and Neteller are popular choices due to their convenience and security features. PayPal, for example, became Germany’s most popular payment method in 2021. In contrast, local payment methods such as Alipay in China or Gcash in the Philippines are more prevalent in regions like Asia, where credit card penetration may be lower.
Accepting payments that favour regional preferences allows gaming companies to better manage their cash flow by reducing exposure to currency exchange rate fluctuations. Plus, international transactions can sometimes be expensive because of the additional fees and currency conversion charges. This explains why the best online casinos in Canada allow players to transact in Canadian dollars in a bid to lower transaction costs.
Localizing can be an excellent tool for gaming companies to enhance regional appeal. According to LTVplus, 72.4% of customers preferred platforms offering localized experiences, while 55% said they would only purchase from such sites. When players encounter payment methods they trust and are accustomed to, they are more likely to complete transactions. Offering such experiences can provide a seamless and hassle-free experience as the friction that may arise when depositing or withdrawing is minimized, while simultaneously increasing customer conversion rates and improving revenue for companies.
More Benefits of Localizing Payments
Platforms can draw valuable insights from player preferences and behaviours. This is handy when companies want to carry out targeted promotions such as personalized offers and incentives. In a world where customers seek more tailored experiences, personalization has emerged as a critical tool through which gambling platforms foster stronger player bonds. A write-up by Ninetailed revealed that up to 91% of customers were more inclined to shop at sites that offered relevant offers.
With payment orchestration platforms emerging, online gaming platforms can now manage and optimize several localized payment methods. This allows them to route and streamline transactions through varied networks, processors, etc. As such, gambling companies are better prepared to adapt to changing market dynamics and optimize performance across their payment frameworks.
Overall, localizing payments has become essential for international businesses to connect with different geographical regions. Most customers associate businesses that offer such experiences with professionalism, reliability, and customer-centricity. This can contribute to long-term customer loyalty and advocacy and attract new customers through word-of-mouth recommendations.
