Viewpoints: The future of cashless payments

Victor Newsom, SVP of Product Management and Payments Solutions, Everi

Victor Newsom is a Fintech and gaming veteran who has held leadership positions for a wide range of companies engaged in acquiringm issuing and processing US and International operations and card-based, virtual, cryptocurrency and mobile payments, as well as DeFi. Victor has consulted with US law enforcement, worked on payments legislation, advised on central bank policy in emerging markets and Fintech-related intellectual property.

Tim Marcolina, Product Development Manager, Pavilion Payments

Tim Marcolina is a Product Development Manager at Pavilion Payments with 19 years of experience in the gaming industry. His expertise focuses on casino floor and cage operations, where he specializes in optimizing payment solutions and streamlining processes for improved efficiency.

Leighton Webb, VP and GM of iGaming and Sports Betting, PayNearMe

Leighton Webb is the VP and GM of iGaming and Sports Betting at PayNearMe, where he is responsible for establishing PayNearMe for iGaming as the preeminent payments platform in the gaming industry. Leighton brings over 20 years of experience in the gaming industry, launching and managing gaming platforms and services on every major consumer platform.

Molly Dugan, Director of Strategic Marketing, CPI

Molly Dugan is an accomplished professional with over 15 years of experience in strategic marketing and communications. Molly spearheads initiatives aimed at driving organic growth within the gaming market, collaborating closely with cross-functional teams to deliver innovative products and services. Her role involves extensive market analysis, identifying customer needs and staying abreast of industry trends to inform CPI’s long-term growth strategy.

Tamara Tenenbaum, SVP and Key Account Executive, Sightline

Tamara Tenenbaum is Senior Vice President and Key Account Executive at Sightline Payments, leading growth initiatives and partnerships with over a decade of experience in gaming and payments.

How is your company evolving to meet the needs of resorts, casinos and other businesses

Victor Newsom: We continue to look to the future and how to best serve the gaming industry in a world of converging expectations across channels, products and service categories. In addition to a long-running investment in core banking technology and payment skills, our acquisitions of compliance companies, loyalty companies and Venuetize are all geared at providing best of breed, integrated and seamless experiences to patrons and operator team members alike. Specifically in the payments world – embedded payments, composable payments, payments orchestration and transactional identity are all key descriptors of our products and services needed to meet the growing demands of patrons when, where and how they want them.

Tim Marcolina: Pavilion Payments is uniquely positioned in the gaming space as it works with both businesses (B2B) and patrons (B2C) in both the physical and digital mediums. This positioning at the center has given us incredible insights and allowed us to create products in the evolving landscapes of gaming with younger demographics. Part of this evolution is operators and businesses wanting to reach these younger demographics. Pavilion has enabled this by providing cashless solutions that align holistically across the casino vertical. Our VIP Mobility platform offers a seamless, frictionless cashless gaming experience, integrating within the existing casino and resort hardware.

Molly Dugan: For years, CPI has been a trusted payment partner to not only gaming operators, but customers in the retail, vending, transportation and financial services industries as well. In addition to managing physical currency, we provide digital payment solutions for these industries and have developed our solution roadmaps based on the unique needs of each of these markets. As the gaming industry evolves to accept alternative forms of payments beyond cash, coin and TITO, we are leveraging the insights, partnerships and technologies we’ve gained over the years to create solutions that are designed specifically for the needs of gaming operators. Because we have extensive experience in other markets, we are well positioned to address the unique challenges and operating conditions of resort environments, which include not only gaming applications, but retail, parking, hospitality and other considerations as well.

Leighton Webb: Our company is evolving to meet the needs of resorts, casinos and other businesses by focusing on improving operating margins, with payments being a critical component of that strategy. The days of acquiring new players at any cost are behind us. Now, operators who find a sustainable path to profitability will stand out in this competitive market. By optimizing payment processes, reducing acquisition costs and maximizing player lifetime value, operators can significantly improve their margins. Additionally, scalability is key, especially during this period of rapid growth in online gaming. In 2024 and beyond, operators will need to evaluate platforms that enable them to quickly enter new markets, offering a seamless experience across all major payment methods. Our platform is designed to support that growth, helping operators get to market faster while maintaining profitability.

Tamara Tenenbaum: The technologies surrounding digital payments are constantly evolving, as are individual operators’ needs and patron preferences. That’s why Sightline Payments is continuously adapting and developing innovative payment solutions that focus on enhancing the patron experience, as well as reducing the burden on gaming operators. We improve and innovate our payment solutions, making them more user-friendly, versatile, and integrated with loyalty programs and responsible gaming features. We continuously invest in new technology and building strong partnerships to help reduce transaction fees, increase acceptance rates, and generate additional revenue for our gaming clients. This approach allows us to support the evolving landscape of the gaming and resort industry, ensuring our solutions meet the dynamic expectations of both operators and patrons.

Is there any pushback from physical money veteran players who are more accustomed to physical money

TM: The different behaviors within different demographics are very real. Some players still prefer physical cash, and Pavilion Payments accommodates these preferences through our VIP Financial Center self-service kiosks and cage applications which provide quick access to cash on the casino floor. With other demographics, however, wallet and digital-based transactions are becoming the norm outside of the gaming industry. Pavilion’s VIP Mobility product helps bridge the gap by leveraging the casino’s existing Ticket-In, Ticket-Out (TITO) system – a familiar feature for many players – ensuring a smooth transition to cashless gaming. Even with the older demographics we have seen the pushback shrinking over the last few years.

VC: Patrons are people and people hate being pushed down a single path as a rule. Our efforts to provide a wider range of products to meet the needs and expectations of various customer segments means there is a better overall performance for operators looking for the many benefits of a digitally integrated operation. This is not really a new concept, but the execution takes a great deal of vision and support from the executive teams of the operator, Everi, and any other partners in delivering the patron experience.

LW: For a variety of reasons, some players will always prefer to continue to use cash and eliminating it entirely would alienate that segment of the player base. Cash is a tangible, reliable form of payment that will always have a place in the gaming industry. PayNearMe has historically been bringing cash payments into the digital space by allowing deposits to be made in cash for iGaming and online sports betting platforms. That crossover between brick-and-mortar and digital payments – the omnichannel payment experience – is really what operators need to be looking ahead at to meet the needs of all players. Bridging the gap to allow everyone to pay and withdraw the way they prefer is how to capitalize on the growing market of players.

MD: Of course. But we believe that much of that apprehension stems from the perception that cashless payments are intended to replace TITO or cash, rather than complement it. When talking to operators, we often hear, ‘my players prefer cash.’ And for certain individuals, that’s true. But to assume it’s true for the player populace at large would ignore the payment trend we see in every other industry, where consumers demonstrate again and again a preference for digital payments. With emerging technology, it’s key to recognize that the goal isn’t immediate mass adoption. Instead, it’s about targeted adoption – identifying the players who will benefit most from the technology, helping them get started and driving adoption from there. With the right player adoption, a tangible ROI can be achieved relatively early, and other players will eventually follow.

TT: To say ‘veteran’ makes acceptance of digital payments vs. traditional payments strictly a matter of age, when it is more complex than that. For a variety of reasons, some patrons prefer physical cash and, for some players, the feel of cash and traditional gameplay are part of the casino experience. Our goal is not to eliminate cash entirely, but to provide additional options that enhance the gaming experience by offering safer and more seamless alternatives. Sightline’s digital payment solutions are designed to coexist with traditional payment methods, giving patrons the flexibility to choose how they want to transact. We aim to empower patrons with options that cater to their comfort levels, while also introducing them to the convenience of digital payments.

What is the future of cashless payments and how much further can it go beyond what is currently being integrated

VN: While we have seen double-digit conversion of cash on the gaming floor already – as we zoom out – the reality is that we are just beginning to scratch the surface. It is obvious that we will continue to push digital integration and enablement beyond the gaming floor and into retail, hospitality, entertainment, sports and even transit over time. For now, we remain laser focused on these foundational, transformative product rollouts. It is worth mentioning that one aspect of this effort that is already paying dividends and is a HUGE benefit to operators is the growing amount of data, visibility and insight they gain about the patrons and their own operations. This will continue to show compounding benefits across all aspects of their operations.

TM: The future of cashless payments in the casino industry is promising. Most cashless payment systems integrated today require app downloads and sign-up processes. Pavilion Payments’ VIP Mobility platform stands out by offering a wallet-less solution that integrates smoothly with existing wallets and applications. Our new wallet-less solution, completed in partnership with Apple, allows patrons to fund an EGM via existing smartphone wallets, without the need to download an app. This approach supports all player demographics; those who prefer cash, those who prefer wallets and those seeking wallet-less experiences. As the only vertically integrated cashless solution on the market, we can manage the entire payment ecosystem without relying on third-party providers. We are focused on delivering a superior experience for both casinos and players.

LW: There will always be more work to be done as the market expands and as new tender types become available in the future, but our goal at PayNearMe is to combine all of the most in-demand payment methods (both digital and cash) into a single, optimized cashier for operators and players alike. Another aspect to keep in mind is the seamless movement of money between brick-and-mortar casino accounts and their digital counterparts. The vast majority of payments in brick-and-mortar locations are made in cash today, while the inverse is true for the digital space. This discrepancy in payment tendencies is an aspect unique to the gaming industry, and the operators who perfect the flow of funds between these two worlds will be the ones who successfully capitalize on player brand loyalty.

MD: The payments landscape is evolving with technologies like AI, crypto and biometrics, all of which will certainly be adopted eventually into the casino payment environment, but we remain focused on simply helping operators take the first step toward cashless payment – currently in the form of a mobile wallet. Our customers are focused on maximizing slot floor revenue and creating practical payment modernization roadmaps now. So, to address the immediate future, our goal is to make cashless payments easier for all stakeholders –  casinos, players and regulators. As cashless payments become easier, adoption and revenue will increase, opening more opportunities for the next phase, which may include at-machine debit payments, and then more disruptive technologies likecrypto and biometric payments.

TT: The future of cashless payments is about creating a truly seamless, integrated solution that elevates the entire resort and casino experience. We envision a system where digital payment technology simplifies transactions and connects every touchpoint across the property, from gaming and dining to shopping and hotel services. This integrated approach is aimed at giving patrons a unified, hassle-free experience, allowing them to move effortlessly between different activities while using a single payment instrument. The future goes beyond just convenience. Sightline is continuously enhancing our cashless platforms to offer advanced safety features, such as biometric authentication and fraud detection, to protect both patrons and operators. Additionally, we’re working with expert partners to reduce friction, improve the speed and reliability of payments and implement technologies that make the entire process more transparent.

Is there still a need for physical payment on the casino floor and, if so, will cash ever be fully pushed out

VN: Never say never but the all-or-nothing approach rarely works well in the near term. I would certainly expect cash usage – like physical checks, coupons, airplane tickets, physical payment cards – to all have reduced usage as Everi’s Digital Neighborhood model expands through the industry but I doubt it will go away anytime soon. Delivering the experience the guests want is the key. Patrons who successfully use the banking as a service feature in our wallet, and are very happy using it, will still go to an ATM for cash or get a TITO ticket for gaming even though neither is required. By delivering the choice – we see greater use and satisfaction (aka loyalty). The secret is making sure that the choice is constructive vs dilutive to the strategy. So, for now, we continue to execute our strategy alongside in partnership with our customers.

TM: The need for physical payment on the casino floor is driven by player behavior and why Pavilion Payments continues to provide such full-service options, including our VIP Financial Center self-service kiosks and cage solutions. This trend is shifting toward cashless solutions, driven by the convenience they offer, but cash represents tangibility to many patrons, which we believe will continue to be important for the foreseeable future. While cash may not disappear entirely, the demand for cashless options continues to grow, and casinos are preparing for this shift. Our suite of solutions ensures operators can provide the experience their patron’s desire.

LW: Despite the growth of cashless gaming, cash continues to play a pivotal role in the gaming industry. In fact, according to research, 46% of bettors said it’s important to have access to cash as a funding method when depositing funds for online gambling/sports betting. So I believe cash isn’t going anywhere. It’s a tangible, reliable form of payment that will always have a place on the casino floor.

MD: Absolutely, there is still a need for physical payments on the casino floor. We don’t believe in eliminating or replacing any single form of payment. In the various markets we operate in, we’ve observed that consumers have different preferences. Our goal is to meet customers where they are. Whether a customer wants to play with cash, TITO, or a mobile wallet, we aim to accept all forms of payment. By offering multiple payment options, we ensure a seamless and inclusive experience for all players, catering to their individual preferences and needs.

TT: As long as there are patrons who prefer to pay with cash, there will be a need for physical payment options on the casino floor. While digital payment technology is growing in popularity and offering new benefits, we recognize that many patrons still prefer using cash. Sightline’s approach is not to eliminate cash but to provide additional options that enhance the gaming experience, allowing patrons to choose the payment method that best suits their comfort and needs. As digital payment solutions continue to evolve, we anticipate a gradual shift where cash becomes more of a backup or secondary option. The focus is on expanding choices for patrons, making cashless an attractive alternative.

Kirk Geller

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