GÖTEBORG | Scandinavian online gaming operators Betsson and Mr Green have become the first high profile operators to partner with PugglePay, a young socially responsible payments service provider that allows players to deposit using their mobile phone numbers.
How PugglePay works
Users enter their mobile number into the PugglePay cashier, which sends a code to their phone via text message, and allows the company to verify a player’s identity then carry out a credit check, that takes a fraction of a second. If the player passes the credit check, the agreed amount is deposited into their gaming account, and an invoice is sent for the sum to be paid at a later date, breaking down barriers to entry by offering a quick and simple payment method.
The PugglePay company
The company was founded last year by chief executive Kristofer Ekman Sinclair, who previously worked for payments company Klarna, and sales director Johan Friis, who has held roles with Unibet’s B2B subsidiary Kambi Sports Solutions and Betsson. PugglePay’s solution has been designed to work on all platforms, and has become the first solution to be verbally approved by Malta’s Lotteries and Gaming Authority, and has been certified by the Swedish financial services authority and the UK’s Office of Fair Trading. Alongside Mr Green and Betsson, PugglePay works with around 20 smaller gambling operators.
PugglePay enhancing the customer experience
It will soft-launch on the Mr Green site tomorrow, with chief executive Marcus Nylén explaining that his company is “always looking into new ways of enhancing the customer experience in our casino. “We now add PugglePay to our various payment methods because we think it's what many customers want,” Nylén explained.
Commitment to Socially Responsible Gambling
Commenting on the deal Ekman Sinclair described the partnerships as “a big step to take for the business,” describing the size and scale of each business as “very attractive” but highlighting each company’s commitment to socially responsible gambling as a key motivation behind the partnership. “They have proved that companies can combine responsible gaming with growth and profitability,” he explained.
Speaking exclusively to Gaming Intelligence Ekman Sinclair explained that the decision to found PugglePay was prompted by Friis, who at the time worked as CEO assistant to Pontus Lindwall at Betsson, contacting him looking to discuss ways to increase conversion rates from registration to deposit.
Online Shoppers Sweden prefer to pay by invoice
“At that time around 60 per cent of Betsson’s registered users did not make deposits,” Ekman Sinclair explained. “Johan realised that they could do so much more in terms of easy-to-use solutions, so he contacted Klarna and that was the starting point.” “Looking into how online shoppers prefer to pay, in Sweden invoice is the preferred solution, and around 60 per cent of ecommerce payments are done via invoice, so it’s easy to see there is huge demand for this kind of solution,” he added.
Invoice-based countries are target markets
The solution is predominantly aimed at markets where customers use invoice-based payment solutions such as Scandinavia, Germany and Latin America, but Friis explains that the solution could become widely used by UK gambling operators, where despite the growth of mobile gaming, few players deposit via devices.
PugglePay's solution is as easy as it should be
“If you look at Sky Bet, around 65 per cent of total volume comes from mobile, for Unibet around 35 per cent of sales volume comes from mobile,” Friis said. “But for some companies only 10 per cent of turnover from mobile devices are from mobile payment solutions.” “The means for depositing via mobile are not as easy as they should be, especially as mobile gaming is increasingly important to operators. The margin for gaming companies is diminishing, since it’s such a competitive market today and operators are looking into optimisation solutions to increase deposits and revenues,” he explained.
Sourced from PugglePay, August 20th, 2013