Account-to-Account Payments: The Preferred Funding/Withdrawal Method for Daily Fantasy Sports

The fantasy sports industry is massive and growing steadily at an expected rate of 14.1% per year. Almost 20% of adults over 18 play fantasy sports—and reports suggest the market will top $56 billion by 2030.

This surging industry is packed with savvy daily fantasy players who regard gaming as a skill-based alternative to sports gambling (which is considered a game of chance). It’s considered “online gaming” vs. “online gambling” for a reason—players are choosing to avoid casinos and test their sports forecasting skills to win real money.

Now, these fantasy sports players have access to a funding/withdrawal payment processing method to match their methodical nature. 

Account-to-account (A2A) payments enhance the daily fantasy experience so players can get in the game—and remain most effective—faster and more easily. 

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What are A2A payments? 

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Account-to-account (A2A) payments digitally transfer funds between bank accounts. They're also often called pay-by-bank.

To pay via A2A, a user logs into their bank account to authenticate the online payment. That payment is either pushed or pulled (depending on who initiates the transaction) from the consumer bank to the merchant account provider.

The money is moved either very quickly or instantly, depending on which rails the payment gateway is processed through.

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Why A2A for fantasy sports payment processing? 

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Growing industries require constant innovation. If your competitor has a slight edge, it’s reason enough for customers to jump ship and join them. A2A is heading toward widespread adoption, so it’s up to fantasy sports companies to get on board early. 

Below are the key reasons account-to-account payments are a perfect fit—and a better alternative over debit or credit card payments—for fantasy sports: 

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Convenience

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Over half of consumers say convenience influences at least half of their decisions.

With A2A transactions, players link their bank account in just a few moments. For all future payments, gamers immediately add or withdraw funds in a single click. 

Such a high level of convenience is crucial for daily fantasy players looking to place a pick or cash out as fast as possible. New studies from the Federal Reserve confirm this demand, stating 61% of consumers say they are likely to use faster payments more often in the future. 

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Easier player acquisition

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The checkout experience, or “time of deposit”, for fantasy sports players is the final hurdle to winning a customer’s business. It’s critical there’s no doubt in the player’s mind as to whether they should make the deposit or not.

Common blockers for daily fantasy player acquisition include:

• Security concerns
• Lack of funding options
• Card declines or chargebacks
• Confusing or clunky payment processes
• Slow deposit/withdrawal times
  
  

Enticing pay in and pay out options like A2A make daily fantasy deposits seamless. They’re secure (see next section), straightforward, and near-instant for player deposits and withdrawals. Also, A2A and ACH transactions typically include chargeback prevention.

Fantasy sports companies that leverage A2A customer payments will acquire more players, who can happily get in the game faster. 

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Security

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Security is a serious concern when it comes to credit card processing and payment via debit cards in fantasy sports. As more players conduct online transactions, the risk of credit card fraud increases. 

With A2A, customers log into their bank directly, guaranteeing bank-level encryption. There are also the highest levels of fraud detection, prevention, and real-time risk assessment to protect gamers and fantasy sports merchant accounts.

Additionally, payment companies like Aeropay only ask for the minimal amount of personal data to keep people and payments safe.

Learn more about how Aeropay ensures secure payments.

No fees

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An easy way to turn away a new or existing customer is with a consumer-facing fee. A Morning Consult survey commissioned by American Express found 77% of consumers agreed they would shop elsewhere if presented a fee at checkout.

Payment processors like Aeropay charge zero consumer-facing fees. Daily sports companies shouldn’t force their gamers to spend extra money on transactions—there’s too much competition and risk of losing their business. 

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Competitive advantage

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If your competition isn’t accepting payments via yet, now is a golden opportunity to gain a competitive advantage. For all the reasons stated above, account-to-account transactions are ideal for gamers. 

In the daily fantasy sports world, players are moving money around regularly—any delays in that push/pull and they’ll feel discouraged. Be sure to make that option available by choosing A2A payments for your fantasy sports business! 

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See the Aeropay difference for daily fantasy sports

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With notable fantasy partners like PrizePicks, Aeropay provides embedded API-first payment processing solutions for everything from fantasy football to daily fantasy sports.

Our account-to-account payment options simplify and offer instant payouts for your players—helping eliminate barriers to entry and keep the game going.

Notable features include:

• One-click checkout experience
• Comprehensive documentation
• Custom branding

• Embedded payments 

Schedule a demo with our fantasy sports payments specialists to see what all the hype is about.

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