LeoVegas’ Christian Reinheimer on the Future of Payment Technologies in Gaming

In the ever-evolving world of gaming, cross-collaboration with finance and technology sectors has become increasingly significant. With innovative payment technologies, such as Open Banking, gaining traction, the intersection of betting and fintech has never been more pronounced.

Christian Reinheimer, Group Director of Payments Product and Technology at LeoVegas Group, is at the forefront of this transformation. Speaking at the upcoming Payment Expert Summit, he sheds light on how the MGM-owned gaming firm is staying ahead in the payments innovation game and why this is crucial for the industry.

When asked if payment methods provide a competitive edge in mature markets, Reinheimer affirmed their importance. “Absolutely, yes! Mature, regulated markets offer clarity that helps provide excellent customer experiences for deposits and winnings. However, there’s still room for interpretation, fostering innovation and a competitive advantage,” he said.

Reinheimer emphasized the role of payment experts in delivering a convenient and secure customer experience. He believes that the methods appealing most to customers will foster loyalty.

According to Reinheimer, artificial intelligence (AI) is currently redefining customer journeys in betting, particularly AI for pattern detection that supports personalization. “This personalisation can take many forms, from understanding customer preferences to identifying risks and enhancing payment success rates,” he explained.

Reinheimer highlighted the significant impact of AI in creating better customer experiences and scalable products. He also mentioned ongoing efforts to improve the infrastructure for real-time payments across borders, which presents both opportunities and challenges.

Open Banking has been a buzzword in the fintech space, but Reinheimer remains cautious about its current capabilities. “We’ve been involved with Open Banking since 2019, and while it opens up innovation opportunities, the data quality from bank APIs has been disappointing,” he noted.

He pointed out that Open Banking alone cannot provide a high-converting KYC solution due to the need for data normalization and enrichment from other sources. This has tempered the initial enthusiasm from the PSD2 initiative.

Reinheimer sees potential for gaming operators to learn from the financial services sector, particularly in payments, KYC, and AML compliance. He noted the similarities in challenges faced by both sectors, such as monitoring transactions for risky behavior, fraud mitigation, and ensuring customer safety.

“A casino operator acts like a bank, taking in money and paying it out. The methodology and technology used for monitoring and compliance are quite similar,” he said. He emphasized the importance of effective, low-friction customer identification, drawing parallels with financial institutions like Klarna or Revolut.

For operators like LeoVegas, considering payments in a multinational strategy is crucial. Reinheimer stressed the importance of understanding local customer preferences and the provider landscape. “Offering only cards won’t suffice. Providers and customer preferences vary greatly across markets,” he explained.

Reinheimer advised a thorough analysis of the provider landscape and financial networks to determine the best mix of payment solutions. He noted that adding more middlemen increases costs and reduces control, underscoring the need for detailed market understanding.

Reinheimer revealed that LeoVegas is already engaging more directly with the payments sector, through both in-house development and partnerships. “As regulation matures, big players will build or buy their own solutions. We are developing our bespoke payment gateway to meet specific needs,” he said.

He highlighted the importance of weighing the benefits of third-party partnerships against direct integration or in-house development. “In-house development needs an ROI, usually tied to business scale and complexity. Partnering initially to learn and grow before moving to in-house solutions can be a strategic approach,” he suggested.

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Reflecting on the inclusion of a dedicated Payment Expert event at the SBC Summit, Reinheimer acknowledged the growing importance of payments in the gaming sector. “Payments have become increasingly relevant, with more providers at industry events and expanding payments teams on the operator side,” he observed.

Reinheimer noted the influx of Payments professionals from PSPs into the gaming industry, bringing valuable expertise. “It’s great to see as we level up our game,” he concluded.

The Payment Expert Summit, part of the upcoming SBC Summit, will be held at the Feira Internacional de Lisboa from September 25-26.

Sources:

Christian Reinheimer, LeoVegas: Payments are ‘absolutely critical’ to the gaming sector, Payment Expert, July 17, 2024.