iGaming’s 2018 Payment Trends
The year so far has been filled with unique innovations in the iGaming sphere, many of which were highlighted by the recent SiGMA conference. The event interviewed professionals from the financial technology sector in order to gain more insight into where the banking and payment trends in online gaming are headed in the near future.
Machine learning was the first topic to come up after fraud was mentioned as an inseparable part of the virtual payments ecosystem. Online banking fraud in 2017 put companies back by a collective $100 billion, and according to this year’s forecasts, the number will have risen to $120 billion by the end of the year.
Machine Learning to Prevent Fraud
Artificial intelligence could be the key to reduce high fraud and chargeback rates, which can lead to sanctions from the likes of Visa and MasterCard against merchants in the industry. However, the tech is still in its formative stages, and is not yet powerful enough to tackle fraudulent attacks that are constantly becoming more sophisticated and inventive.
Machine learning, on the other hand, could offer a solution. Payment processors and businesses tend to adopt short-term formulaic prevention techniques that don’t always reduce long-term risk, so using a focused anti-fraud platform like Covery or Kount might help. Each system uses a machine-learning module that maintains a fine balance of avoiding false positives and false negatives, providing a more reliable risk management solution that can be periodically examined and updated.
Monitoring Traffic Quality & Whales
Another big trend is the monitoring of affiliate traffic quality and identifying ‘whales’. Machine learning is again at play here, helping to identify patterns and anomalies in order to spot data breaches. This outlook is well suited to the payments industry, as is another innovation: customer segmentation. AI has not yet been used to its full potential when it comes to traffic quality analysis, but it could be if it was used as an analyzing tool at affiliate levels.
This would give service providers more insight into micro-sectors like cards associated with single emails, multiple emails and more, which would in turn highlight affiliates’ use of grey traffic instruments like fraudulent prepaid card creation and use of fake email addresses. Comparing visits and clicks in public areas and users’ actions in private ones can also clarify the best organic traffic sources, while helping to prevent fraud simultaneously.
Customized & Branded Payments
Accepting all payments is another move that’s also on the cards for the gaming industry, in part thanks to the rapid evolution of online and mobile gambling. The use of social media to transfer funds is proving to be a useful tool for all involved, and some brands have even launched apps through which to create virtual vouchers that can be scanned at retail destinations.
Operators with existing loyalty programs can also use the trend to their advantage to create their own, customized payment ecosystems, complete with real-time payments for added convenience.