2. Virtual Payment for Real Betting
Prepaid, e-Money, Mobile Money :
the smartest approach ?
François Lecomte-Vagniez
30/09/2016 @Lobary - Prepaid, e-Money, Mobile Money : the smartest approach ? 2

3. Agenda
• Horse Racing Bet Journey
• Innovative Payments versus Bet Regulations
• 4 Trends to inspire Bet Payment Experience
 Contactless Payments
 Mobile Wallet Embedded
 Wearable / Connected Objects
 Social Experience
• Conclusion
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4. Horserace Bettor Journey
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Receipt delivery
(or dematerialized)
Winning Bet
Formulate Bet
 Debit Payment Stake
 Credit Bet Gains

5. Omni-channel Bettor Journey
New “Phygital” experiences
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Variety of Payment Means

6. From Money to Payment solutions
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Payment Services Directives 2
Electronic Money Directives 2

7. Highly Regulated Business
Bet Payment
• Anonymous payments :
Cash payment limits
• No credit allowed =
non revocable debit only
• Offline Horse Bets monopoles
Ex. : PMU in France
• Online Horse Bets regulation
Ex. : ARJEL in France
• EMD2 – e-Money Europe laws
(prepaid accounts)
• Gaming account management
• KYC requirements
• Addictive behavior detection
• Etc.
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Bet Gains Credit
• Proof of bet (receipt)
• EMD2 : Threshold to credit
money on prepaid accounts
• Limits to credit Bank Cards
• Money laundry alerts
• Etc.

8. Electronic Banking Homeworks
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Acceptance Issuance
Offline
(card present
payments)
• Contactless
EMV Infrastructures
• Smart Terminals
• Close Loop
Prepaid Services
• Game Accounts
link to cards
• Cobranding / CLO
Online
(remote payments)
• Initial KYC
(regulated market)
• Innovative Payment
experiences
(ex. : Touch Id)
• Apps / Bots
• Invisible Payment
(like Uber)

9. From Cash to Dematerialization
• Identification Mean
 Biometric ID
• Finger Print
• Eyes / Face
• Vocal
 Cards / Objects ID
• NFC - RFID
• Beacon
 Personal ID
• Account ID
• Cell. Phone number
• Card BIN
• Etc.
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Unique Identification
+
Authentication factors
=
Bet Transaction
KYC is mandatory to open dematerialized bets accounts
and define IDentification means & secured authentication processes

10. Trend 1 : Contactless
• Contactless
 EMV Cards & Mobile Payments
 Services based on contactless unique ID
• Use Cases
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Faster Payment Bet Account Debit Card Link Offers

11. Trend 2 : m-Wallet – ex. ApplePay
• EMV & Remote Payments (Visa/MasterCard)
• Private Merchant interactions (Earn / Burn)
 NB : Apple doesn’t allow betting use case
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End-off
Experience
Payment + Receipt + Loyalty
In 1 or 2 taps
Cross channel

12. Trend 3 : Wearables (IOT)
• Wearables
 Watch, Bracelet, Key ring, Glasses, etc.
 Service associated to
• Unique ID / object interactions
• Authentication processes
• Payment
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NFC + Biometry
(Trust Designer object)
Contactless Payment
(Apple, Samsung, Swatch, etc.)

13. Trend 4 : Social
• Social Networks
 Over a billion user worldwide…
 Powerful media to share contents
& engage bettors
 Opportunity for collective bets
 Social payments are just starting…
• Prospective scenario for betting in social places
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Bots in timeline
(opportunity to bet)
Virtual Currency
(Anonymous)
Secured Letger
(e-Receipt)
+ +

14. The smartest approach
• Simplify Bet Experience
 Ease of use is key for paying – make it simple
 Use common payment solutions – trust & habits count
 Make payment invisible while bet gains must alert !
• Offer a seamless betting journey
 Track payment Id with e-Receipt - whenever it’s possible…
 Reduce KYC constraints to boost dematerialized bets accounts
 Develop value added betting services, both as acceptor and issuer
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Make people want betting on horses !

15. Thanks !
François Lecomte-Vagniez
Partner, Lobary
+33 681 494 494
flecomte@lobary.com
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