On January 9, 2007, Steve Jobs introduced a revolutionary device at the MacWorld Expo, stating, "We’re gonna make some history together today," while showcasing the first iPhone. Over the past 15 years, smartphones have dramatically altered daily life, fostering global connectivity and engagement. The prevalence of smartphones means users often experience distress when their device is damaged or lost, akin to feeling a phantom limb.
The smartphone's impact extends into commerce, particularly in payment systems, where consumer expectations have evolved. Shoppers now anticipate seamless online transactions and prompt delivery of products. Payment declines, outdated processes, or poor user experiences are no longer acceptable.
This issue is particularly acute within the gaming industry, where stringent regulations surrounding anti-money laundering, customer identification, and social responsibility hinder efficient payment processes. Christopher Justice, president of Global Payments and a board member of the American Gaming Association, notes, "When you get into the gaming space in the US, the payments rules and regulations and the gaming rules and regulations really don’t operate in the same way." He describes an industry burdened by legacy technology that fails to meet contemporary consumer spending habits.
Justice highlights a disconnect between modern retail culture and traditional gaming methods, emphasizing that convenience is vital. He states, "At the end of the day, we look at the gaming market very similarly to ecommerce, where clicks kill."
Additionally, mobile payment systems face unique challenges due to their constrained interface, requiring less complexity for users. Justice elaborates, "Mobile is far more like electronic buying. So we are minimising those keystrokes, making the process easy whereby a guest can go from jurisdiction to jurisdiction, property to property, and still have access to the money they need in order to fund their gaming entertainment."
To address these issues, Justice advocates for an integrated payment ecosystem that bridges online and land-based gaming. The Global Payments’ omnichannel product exemplifies this vision. He mentions the VIP Preferred program, which currently serves over three million consumers and adds around 35,000 to 40,000 members monthly through KYC verification at physical or online casinos.
The VIP Preferred system functions as a B2C e-check platform, enabling users to transfer funds electronically to iLottery or casinos when other payment methods are unavailable. In addition, Global Payments has introduced the VIP Mobility product, which enhances the longstanding ticket-in, ticket-out (TITO) system used in US casinos since the 1990s. This system enables the issuance and redemption of digital tickets linked to slot machines or table games via QR codes, facilitating swift fund transfers and allowing use for non-gaming services within casinos.
Justice asserts, "Our approach is very different because we’re the only system that leverages the TITO infrastructure which has been in place for 20 years. The reason we do that is because everything is tracked and auditable."
As 2023 approaches, Justice anticipates a tipping point for omnichannel payments. "If you look at a typical bell-shaped curve of a product introduction, we are really at the end of that early adopter phase moving into the fast follower stage," he comments. With consumers increasingly favoring cashless solutions, Justice notes that self-service transactions dominate the retail landscape. He asserts, "People don’t want to stand in line; they don’t want face-to-face conversations."
Contrary to popular stereotypes, Justice contends that older demographics are just as engaged with technology. "The fact of the matter is when we look at the typical demographic of our database, it’s a 55-year-old plus female. They’re on their Android, they’re on their iPhone, they’re using this technology."
He believes that 2023 will herald a shift towards mass adoption of advanced payment systems.
