Experts and economists say that the global economy is suffering from anything between a financial downturn to a full-scale recession, but the online gaming industry is still managing to perform robustly. Online banking service provider Ivobank talks to Jenni Shuttleworth about the growing demand for online services
It’s been far from easy for the online industry and the competition for customers has become increasingly difficult in the last 12 months. That’s why anything that makes customers’ lives easier is a powerful marketing tool for any operator, according to Ivobank’s head of merchant services, Matt Webb.
Based in London, Ivobank was set up by a group of industry veterans that have each held senior positions within the banking and gaming industries and although the company only launched in June, Webb is keen to harness quick growth into new European territories.
According to Webb, quicker processing of funds is vital to operators when cash flow is as important as it is in today’s market - the thinking behind the firm’s money transfer services and virtual debit card. "In the UK, it’s a fairly solid debit and credit card-based business and it is competitive," he said.
Outside of the UK though, international payments are perhaps not as sophisticated. Ivobank wants to take its model and show people it is safe and immediate, two factors that are of great importance.
The firm has launched its services across the UK, Ireland, Spain, Germany, Italy, France and Canada, and is looking to grow further in Europe. The Irish market is of particular interest as the growth of the sector is defying the drop-off in consumer confidence in the country.
"The online gaming industry is particularly popular and thriving in Ireland with many of the industry’s major players being based in the country," said Webb.
"The online gaming market in Ireland is growing by 20 per cent each year and is worth an estimated €100m a year, but mainland Europe is our focus for the immediate future. We want to sign up more merchants during the end of this year and start to build that critical mass."
Launching in more countries means the company can offer accounts to more online bankers, gamers and shoppers throughout Europe.
"Online payments are a major growth area in banking and many businesses and customers have been ill-served to date, resulting in relatively high costs and relatively low levels of service. We have found a real gap in the market here.
"People are more concerned about security than ever," said Webb.
Ivobank recently partnered with online gaming company Unibet to offer fast and secure online payment and banking services to its customers.
"If you look at poker players, they need to keep a big bank-roll and have quick access to cash in case there is a tournament they want to enter," said Webb. "That’s another area where we think we can appeal to gamers."
Beyond Europe, long-term plans for Ivobank involve penetrating new markets further afield as it seeks to establish itself as a global service by its first anniversary of trading. Webb feels the demand is such that covering a wide network of global locations is the logical next step for Ivobank.
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