There are several merits of enabling digital payments in casinos, but the most prominent is the revenue uplift. Casinos that have enabled cashless have seen a 20% uplift in spend per player and a 33% increase in number of transactions per visit. By removing barriers to payment, guests are able to more easily and quickly access funds in the moment of need – while they’re actively playing. We’ve had some operators tell us that they estimate 25% of guests who get up to visit the ATM simply end up leaving the property instead. We want to help those players continue playing by transforming every slot machine into a kiosk or ATM so they can have a more seamless experience that translates to a measurable increase in coin-in for the operator. 

We’ve also seen between our and our partners’ installations -- representing over 100,000 active cashless devices – that casinos have seen a 53% increase in player visits per month. The reason for that is simple – when a customer is choosing their form of entertainment for the night, they are more likely to choose the destination where they already have budget available. When a player has funds stored in their digital wallet for a particular property, they’re more likely to visit that property rather than a competitive casino or even a restaurant, movie, shopping destination or other form of entertainment. 

And finally, we always consider the operational benefits of reducing the cash on floor. Our partners have seen a 10-15% reduction in cash within casinos who have adopted cashless, which can drive significant operational saving overtime, especially as adoption grows and becomes more mainstream. 

There have historically been significant limitations for cashless, especially in the up-front investment required from both a capital and human resources perspective. The most burdensome being the need for a complete CMS upgrade – which has so far been the primary method of upgrading to cashless. But even some emerging solutions come as part of a software platform that requires an IT lift, hardware installation, and potentially even resources for business analytics to run the day to day. This leads to an expensive and time-consuming ordeal for casinos to simply add a new method of payment for their guests.

That is why CPI has met with so many operators, wallet partners and industry experts during the development of Betbridge™, a solution that overcomes these limitations. The Betbridge™ cashless system is an easy way to enable mobile payments using an existing SC Advance bill validator. Betbridge taps into the existing power supply and connection to the game via the SC Advance, removing the need for a high-speed floor or additional infrastructure. By removing the need for extensive infrastructure upgrades, Betbridge overcomes the limitations of existing solutions and is a truly turn-key solution casinos can enable quickly. 

Another limitation for cashless is the dependence on the CWA or other loyalty system. Many of the current cashless installations today leverage the casino loyalty system. And while this definitely has benefits in overcoming KYC requirements and tapping into a high-value base, the downside is that a large portion of a casino’s daily patronage – especially new players or demographics— may not be loyalty members. It’s certainly a good idea for casinos to start with loyalty members as they work to drive adoption of any new technology concept, especially given the intimacy and ability to communicate with them. But anyone who is evaluating cashless should ask their wallet provider and implementation partner how they will make this technology available to all guests – otherwise, they’ll be limiting those substantial revenue benefits to half of their players, and limiting their ability to capture, convert and retain new players. 

What is the market demand for cashless gaming? Are people increasingly drifting away from cash in casinos?

We always hear “my players prefer cash,” when speaking to operators. And at CPI, we absolutely believe that cash remains a critical payment instrument in all markets. However, the question remains whether players truly prefer gaming with cash, or whether it is simply the default in the absence of alternatives. In every other market – retail, transportation, financial services, etc. – consumers are increasingly seeking the convenience and security that cashless options provide. In fact, the most recent Diary of Consumer Payments shows that only 18% of in-person purchases are made in cash – and those are mostly $25 or less. So we need to ask ourselves in gaming whether offering only cash on the gaming floor is truly addressing player preferences, or whether we’ve been remiss in providing an experience on par with competitors in other markets. And of course, we know this all starts with regulators, so it is important that operators and suppliers come together to help simplify the story and the solution for that constituency. 

We’ve also seen that, despite these statistics, there is still scepticism among operators that mobile wallets would be adopted by certain demographics in all properties. And that’s a valid concern that has caused some challenges within existing implementations. However, our wallet partners have seen that over 59% of their wallet customers and 75% of the funding has come from players aged 40+. We also always stress that with technology this nascent, the goal isn’t necessarily mass adoption in year one. It’s about the right adoption – finding the players for whom this technology drives a real benefit, helping to get them started, and letting the saturation grow from there. With the right player adoption, there is a tangible ROI relatively early on, and the rest of your players will eventually follow.

Casino customers are paying through digital means in different industries throughout day, from the coffee they buy at a convenience store, to the food they eat at a restaurant, cashless payments have been the preferred method of payment. Therefore, even if customers may not be drifting away from cash yet, given the lack of options, it is inevitable that when given a choice, customers will choose cashless in casinos too. 

What are the technical and logistical demands on the operator of offering digital payment options?

Offering digital payment options requires operators to invest in robust and secure payment systems capable of handling high volumes of transactions seamlessly. But there are a couple of specific technological and logistical demands that have historically made it challenging to effectively deploy and grow cashless:  

• Infrastructure Upgrade - Upgrading or installing new hardware and software to support digital payments depends on which cashless solution/route you choose:
   
  • With a CMS Upgrade – Updating your CMS is like updating your entire operating system for the office. It includes a major overhaul of your hardware and software elements that keep your floor running. You may need to coordinate directly with your vendor for customizations, specific systems you may need, and some CMS providers provide cashless as part of this upgrade. In the development of our cashless solution, we spoke to over 50+ casinos who have indicated how much they have struggled with an upgrade like this. Which is why we don’t believe that modernizing your payments means updating your entire technology system.
     
  • With a Bill Validator – This year, we introduced Betbridge – an easier way to enable cashless built on the trusted technology already inside most slot machines. Since this is built on existing bill validators, there is no need for an extensive technology overhaul to enable cashless. You can go cashless now and worry about develop your comprehensive IT roadmap at your pace.
     
  • Bundled with live visibility to your floor – There are solutions available in the market that require casinos to upgrade their floor to a high-speed network floor to enable live visibility to the floor and cashless.
     
• Marketing & Training: Once you have enabled cashless, you want to ensure that your guests know about it. This seems like an obvious step, but we’ve heard from plenty of operators who have gone to a property to test out the cashless that weren’t sure how to get started, or whether it was offered at all and on which games. Marketing, signage and staff are critical elements of any roll-out plan, and need to be robust and well-maintained throughout the early deployment stage. Staff who are well-trained to assist players with any technical issues and customer questions that may arise are a critical first line of defense in ensuring long-term adoption and use.
   
  • Floor staff – your customer-facing staff members should be well-versed about the solution, how to onboard a customer and be able to answer simple functioning questions. They can also be supported with appropriate signage to encourage customers to play and instructions on how to get started.
     
  • Technical staff – should be able to solve any technical glitches that may arise and be sure on how the money flows from the customer to the machine to the casino. If there is an issue with funds on the floor or a customer has loaded funds that do not register at the game, you’re going to have a problem with traditional cashless solutions – a problem that may require IT to get involved and sort it out on the back end. This is a key consideration when evaluating suppliers of cashless, and operators should always ask their partners how they manage any technical glitches. With Betbridge, we have simplified the complexities that may arise with reconciliation, since it is built on the popular TITO system, and simply creates a digital tito ticket that is recognized, recorded and reconciled in much the same way as a physical TITO voucher.

Is there a conscious drive to allow players to set limits on their spending to combat problem gaming?

Yes, there is a growing emphasis on responsible gaming within the industry. Many digital payment solutions now include features that allow players to set spending limits, self-exclude, or receive alerts when they approach their limits. These tools are designed to help players manage their gaming habits and prevent problem gambling. Operators are increasingly adopting these measures to promote a safer and more responsible gaming environment. Different mobile wallet providers have different solutions to combat problem gaming, and those can be explored by reaching out to the respective provider. 

What are your latest solutions in the field of cashless gaming?

The trend towards cashless payments has been growing in the industry, with casinos aiming to streamline operations and enhance player experiences. However, challenges such as complex pricing and infrastructure updates have slowed adoption.

Betbridge by Crane Payment Innovations redefines cashless enablement in casinos. Unlike traditional systems that rely on costly technology upgrades, Betbridge offers a simple turn-key solution that can help casinos get ahead of the cashless curve. Rather than bundling cashless with a CMS upgrade, the Betbridge cashless solution offers a simplified implementation process and transparent pricing, facilitating a smoother transition to cashless payments for casinos. 

With just a few enhancements to the SC Advance™ note validator, Betbridge makes a seamless and swift connection between your slots and any mobile wallet provider to implement cashless payments. Betbridge signifies a paradigm shift in how consumers engage with casino payment systems—offering convenient, seamless, and secure payments that will improve the playing experience for patrons.

How do you see the sector developing looking forward?

The world of payments is changing everyday – with all kinds of new and futuristic technology being discussed like AI, Crypto, Biometrics and more. But those technologies are very far into the future, while our customers are focused on maximizing the revenue from their slot floors now, and on building practical, sustainable roadmaps for payments modernization. At CPI, we are focused on helping operators take the next realistic step, making it easier for casinos to enable cashless. If we had to define what will change – or what needs to change – for cashless payments, that’s the key word: easier. Cashless has to be easier for all stakeholders – casinos, players and regulators if we’re to move forward in a productive and sustainable way. Cashless has to be better, faster, and easier than TITO. 

• Easier for Players: It’s easy to say that an ideal digital payment experience would mirror that of an in-person retail transaction – just tap or swipe your card and go. And that’s certainly a great benchmark for all technology providers. However, in gaming, it’s just not the current reality due to many factors. Despite that, guests want the onboarding and play experience to be simpler and quicker. One thing that we believe will continue to evolve in cashless payments is the constant innovation of our wallet partners, who are laser focused on improving the player experience and making it faster and easier every day.
   
• Easier for Casinos: A casino that wants to enable cashless should not have to do a complete overhaul of their technical infrastructure. Betbridge makes it easier by enabling cashless using the bill validator that casinos already have. By including critical elements of implementation with Betbridge cashless solution such as site surveys, installation, activation, and ongoing support, CPI is empowering casinos to make a smooth shift to cashless gaming. And as mobile wallets evolve and improve the overall adoption and play experience, a simple firmware update can enable an additional or alternative wallet. So there’s no major switching cost for our customers should they change providers down the road.
   
• Easier for Regulators: Cashless is the next modernization that casinos are eagerly looking forward to, but they need approvals from regulators to move forward. We want to make it easier for regulators to understand and approve cashless at the state or tribe level. With Betbridge being built on the existing bill validators and essentially creating a digital TITO ticket, regulators can easily understand the functioning and evaluate accordingly.

Once these happen, we will see an increase in adoption and revenue for casinos. The cashless market in general will earn the benefits and then consider the next step. We want to be the ones who set this change. As cashless gets easier for everyone, the next wave of innovation will come, and CPI will be at the forefront.

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To learn more about our gaming solutions, schedule a meeting with us today.

https://www.cranepi.com/en/casino-cashless-payments