The all-in-one sports betting and casino company Uplatform has analyzed the primary obstacles presented to entrepreneurs breaking into the African market for online betting. This market is booming in light of a growing base of younger, tech-savvy fans.
Although, there are a few issues that make breaking into the market difficult. Let’s inspect these issues brought up by Uplatform and talk about how businesses can circumvent them.
Statistical analyses inform us that the conversion of bettors from offline to online betting is possible. However, it isn’t as simple as that. We cannot forget that online betting is still in its infancy here in Africa. Roughly one-third of the continent’s population has access to the internet but the median has significant outliers. For instance, Kenya’s internet penetration is up at 85.2 whereas places like South Sudan and Western Sahara showcase penetration rates lower than 10%.
If you want to become a big player in Africa’s online betting industry, you need to be able to detect market trends and developments and cater to a wide variety of betting styles. Yet, what choices do you have?
Much like with fintech, omnichannels are becoming essential in this industry. This allows businesses to utilize hybrid tactics involving not only a retail presence but a strong online presence too. Omnichannel solutions make businesses more versatile and conducive to the effective adaptation of strategies during periods of change. Teaching users about the benefits afforded to them through online betting is also a good way to stimulate the growth of the market.
More than 90% of Africans access the internet exclusively through mobile devices. Businesses must thus make their UI accessible through all sorts of devices. SMS and Telegram betting is also a good solution to infrastructural limitations.
It is going to take time for offline bettors to grow accustomed to online betting. For many, retail betting is still considered an easier and safer betting option for a number of reasons ranging from social to infrastructural.
The people working at Uplatform nevertheless speculate on the possibility of fully converting the gambling consumer base of Africa to online betting. To achieve this, businesses must take stock of the primary reasons why offline gamblers refuse to integrate. To overcome this hurdle, businesses need to conduct market research on gamblers to figure out the best plan through which they can attract more clients.
Since offline gambling seems to be here to stay, it appears that omnichannel integration is a fitting business model. This allows gambling businesses to run brick-and-mortar betting services concurrently with the development of their online platforms. Omnichannel fintechs’ like Uplatform produce software that can integrate a business’s online and offline gambling platforms so that share wallets, accounts, and even loyalty programs, meaning clients need only register to one of either platform to have access to both.
To remain economically viable, customer service quality is crucial to any business. A defining aspect of customer service concerns the payment systems available to consumers. The African continent still has incredibly low penetration rates for online banking. This presents obvious issues for the online gambling industry. The success of online gambling business is thus determined by said business’s ability to integrate local payment systems for its consumers.
In the African context, payment options like mobile transfers and e-vouchers make the most sense. Mobile payment penetration is also currently on the rise in Africa, making it the most viable choice. These payment methods, as well as some others, need to be made available to online bettors in Africa – at least until more consumers are using traditional payment methods. Uplatform offers these payment methods and many more.
Want a Piece of the African Online Betting Market?
Modern consumers expect innovative and technologically adept service delivery. They demand convenience and ease of access before they are willing to grant businesses their patronage. To attract consumers to the world of online betting in Africa, it will be necessary to overcome the abovementioned obstacles present in the market.