Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Promoting in Unregulated Markets
1. Acquisition using prepaid
payment methods in unregulated
markets
Tom Chandler
28th January 2012
www.ukash.com
2. What is Ukash?...
• Ukash is pure electronic money – it is cash for the digital age
• You get it by swapping cash for a Ukash voucher in a store, from your bank account online or at an
ATM
• Ukash is delivered, secured and identified by a “one time use” 19 digit code
• Just like cash, if the amount tendered is higher, then a new code is given as “Change”
• It is not necessary to register or identify the person (within limits)
• Ukash can be used for payments, transferred to others and redeemed back to cash (with KYC)
• Ukash is simple, universal and inclusive
www.ukash.com
3. What is Ukash?...
• Ukash- Available in all
major currencies-
USD, EUR, GBP, NOK,
CAD, AUD, SEK…..
• Available online in
several territories
• Vouchers available up
to value of GBP 500 or
equivalent
• Available from over
450,000 POS
worldwide
• Completely free to the
end user
• Ukash Payouts now
allows withdrawals via
the same mechanism
www.ukash.com
4. Generic online payment myths
1. Credit/debit cards cover >90% of the potential online market, so there’s no need for alternatives
2. People are no longer afraid of giving out their personal financial details online
3. The numbers of people effected by points 1 & 2 is so small that it really doesn’t matter
4. The payment alternatives out there are impractical and unpopular with bettors
5. Offering alternative payment options, simply confuses people & adds no revenue
6. Fraud & charge-backs are inevitable with all online payment methods
7. Cash may be King again on the High Street, but it has NO practical value online
www.ukash.com
5. Debit and credit cards account for over 90% of the
market so why use other methods?
• This is not necessarily true. Chart below illustrates card penetration by country.
• 67% of adults in the EU don’t have a card for online deposits= 330 million (400
million all of Europe).
80%
70%
60%
50%
40%
30%
20%
10%
Source: Eurobarometer/nVision Research
Base: 1,000 per country aged 15+
0%
s
rg
y
re l
ry
P ep
N Ir e k
er m
he n d
F en
or a
Lu F r d
ce
w y
e
in
H sia
G ga
R d
15
27
pe
nd
A ly
en K
an
ar
a
n
P tri
ou
an
ec
ga
G iu
pa
D U
Ita
R
w
la
xe an
ed
et la
tu
o
m
rla
us
us
U
U
m
g
ol
un
b
or
ur
in
ch
S
el
E
E
m
N
E
S
B
ze
C
www.ukash.com
7. Addressing the customer concerns
• Disclosure of personal details online.
– Higher risk of fraud in grey markets. Cash based solutions reduce
the need for disclosure of sensitive information.
• Other barriers to entry (country specific)
– Norway- block by financial institutions on gambling transactions.
– Cultural shift to prepaid as a long-term result of this.
– Argentina- low card penetration/ poor online payment infrastructure
combined with the fact Brazil/ Argentina have highest internet
penetration growth in the world.
• Availability
– Points of sale need to be apparent to the customer!
www.ukash.com
8. Failed conversion on the cashier- can we take this a
step back?...
Lost Sales from customers
without selected payment
₤€$ type
₤€$
Successful Purchase
www.ukash.com
9. Taking conversion back to the affiliate…
• Prepaid methods become a middleman in these markets where conversions are troublesome.
• Ensure the deal with operator covers the costs of both parties. (affiliate and payment method)
• Ensure affiliate is given relevant localized banner content and work with your affiliate to build an
enticing offer with a call to action and localized landing page.
• Make sure content is presented to the relevant target market. (geo-location).
www.ukash.com
10. Benefits for affiliates…
• Very little effort to set up (payment companies can provide the
localised content and organize deals with operators
themselves).
• Payment methods are generally not very widely promoted by
affiliates- steal a march on your peers.
• Secure deposits are one of the main barriers to entry in grey
markets. Why not work together to exploit this?
www.ukash.com
11. What are the next steps for you?
• Contact Tom.Chandler@Ukash.com to discuss your options for
partnering with Ukash.
• Check out our website www.ukash.com/affiliates now offering:
– More information on affiliate and operator packages
– Marketing tools
– Contact information
– Registration
Educate the players before they reach the cashier and convert
them before they fail to deposit!
www.ukash.com
12. Thank you
Tom Chandler
Head of Betting & Gaming
D: +44(0)20 70894012
M: +44 (0)7793 272 512
E: Tom.Chandler@ukash.com
www.ukash.com
