USSD — Africa

USSD Technology in Betting

USSD (Unstructured Supplementary Service Data) offers significant benefits for betting companies, from enhanced accessibility and real-time updates to increased security and reduced downtime. By leveraging USSD, betting companies can improve their customer experience, streamline operations, and safeguard their business against potential disruptions.

What is USSD?

USSD (Unstructured Supplementary Service Data) is a Global System for Mobile Communications (GSM) protocol used for sending text messages, functioning similarly to Short Message Service (SMS). It is a session-based text messaging service designed for interactive communication, such as banking or education, without the store-and-forward mechanism used by SMS.

It operates directly on the network, requiring no installation on the user's phone. USSD is a straightforward technology with global coverage that allows users to perform various actions by sending specific codes, without any data connection. It is one of the most commonly used channels for making payments via Direct Carrier Billing (DCB) or Mobile Wallet through a smooth and simple process. Here's a guide on how to quickly build USSD codes;

Why are Betting Companies Embracing USSD Technology?

For companies in the sports betting industry today, business operations have proven to be extremely complex, which explains why betting companies are leveraging USSD technology to streamline their operations and enhance their customer service. USSD-Unstructured Supplementary Service Data- provides a reliable, low-cost way to communicate with customers, even those without internet access. Other benefits include;

1. Enhanced Accessibility

USSD betting allows customers to place bets, check odds, and manage their accounts from any mobile phone, without needing a smartphone or internet connection. This expands the market reach, particularly in regions where internet penetration is low but mobile phone usage is high.

2. Real-Time Updates

Betting companies need to provide real-time updates to their customers. USSD technology enables instant communication, ensuring that customers receive up-to-date information on odds, game results, and account balances. This immediacy is crucial during major sports events when betting options can change rapidly.

3. Increased Security

Security is a paramount concern in the betting industry. USSD transactions are secure because they do not store any data on the mobile device. This reduces the risk of data breaches and fraud. Additionally, the use of USSD can mitigate the risks associated with system tampering and manipulation, which can affect odds and user data.

4. Reduced Downtime

Downtime can be catastrophic for betting companies. By integrating USSD with other platforms such as SMS, mobile apps, and websites, betting companies ensure redundancy in their operations. If one platform fails, USSD can serve as a backup, minimizing downtime and financial losses.

5. Cost-Effective Communication

USSD is a cost-effective solution for customer communication. Unlike SMS, which incurs a cost per message, USSD sessions are charged based on usage, making it an economical option for continuous interaction with customers. This is particularly beneficial during high-traffic periods like major sports events.

How to Access Unreachable Customers with USSD Technology in Betting

This latest development in USSD technology aims to reach "unreachable" customers who have limited access to data connectivity, the internet, and basic smartphone mobile devices. The introduction of USSD betting allows customers to make deposits, withdrawals, and place bets without the need for an internet connection.

The USSD technology in betting has proven to be in line with the industry player's strategic goals. USSD technology in betting encompasses raising awareness about this ground-breaking channel and strengthening a company's reputation as a sports betting brand, as well as offering an end-to-end customer gaming experience in a rapidly growing market.

The best betting sites with USSD allow users to place bets easily and quickly. These gambling platforms are known for their simplicity and ease of use, making them a popular choice among users who prefer a straightforward betting process. Through USSD, betting sites represent a special niche that provides the opportunity for their audience to bet easily and comfortably, especially in regions with limited internet access.

Modern bettors need to understand the basics of these sites, as well as how to bet by USSD. In this age of digitalization, when users are spoiled with convenience, betting sites that use USSD stand out by offering a unique and accessible betting experience.

Leveraging USSD Technology in Betting: A Blueprint for Success

The betting industry is a fast-growing and highly profitable sector. Characterized by constant gaming development and forward movement, operators in this field continuously introduce new games and additional bonuses to retain existing players and attract new ones. Given the rising competition in the betting industry, there is a need to understand how USSD technology can be leveraged for success.

Understanding Your Audience

The first step in any business is understanding your customer base. This knowledge allows you to provide better games, services, payment methods, and bonuses, making you more competitive in the market and delivering a higher return on investment. For instance, 6 out of 10 Africans use feature phones, with the majority of smartphone users located in large cities. Many of these individuals lack access to electronic money. Therefore, if your target audience resides in medium or smaller towns, leveraging alternatives to traditional online distribution (like websites or mobile apps) is crucial. This is where USSD technology in betting comes into play, offering an accessible and efficient solution for placing bets.

Business Planning

A comprehensive business plan is essential, encompassing various variables such as the list of lotto games, unique design, taxation, distribution, profitability, and ideas for further development. Focus on your unique selling proposition (USP) along with corporate identity and branding to set your business apart from competitors. Part of this planning involves a financial roadmap, detailing how much funding is required to start and sustain your business.

Sales Models: Online vs. Offline

There are two major ways to distribute betting tickets: online and offline. The classic online model typically requires robust internet infrastructure, smartphones, and electronic money. If your audience has access to these, the online sales model is the most cost-effective option. However, in developing rural areas, these elements are often lacking. USSD technology in betting offers a practical alternative, allowing feature phone users to place bets via USSD requests. In recent years, USSD has become a common method for placing bets. This hybrid approach can be effective for both small and large betting companies, addressing infrastructure limitations while still providing a seamless betting experience.

Funding Your Business

A detailed business plan should include all potential costs, such as legal and licensing fees, software and hardware expenses, bonuses, salaries, rent, and utilities. Once you determine the required funding, you can seek out business partners, investors, or banks for loans. This thorough preparation ensures you have the resources needed to launch and grow your betting business.

Licensing Requirements

Betting is regulated by governments worldwide, with most requiring operators to obtain licenses. In Kenya, for instance, betting is regulated by Betting Control and Licensing Board (BCLB). While some operators in other African countries may initially operate without a license, securing a local license is advisable. This not only supports sustainable growth but also allows you to plan for future expansion. Thoroughly review the licensing requirements in your jurisdiction to ensure compliance.

Software Solutions

Developing and maintaining your own  platform is challenging, requiring attention to infrastructure (security, payments, user management) and content (games, promotions, bonuses). A flexible software provider is essential, capable of adapting to your local market and strategic needs. Selecting a reliable provider can be the fastest and most cost-effective solution. HelloDuty offers comprehensive services, from initial consultation to software customization and adaptation, ensuring your business thrives with the right technology and support.

Conclusion

USSD technology in betting provides a unique opportunity to reach customers who have limited access to smartphones and the internet. By integrating USSD capabilities, you can offer a seamless, accessible betting experience, making your lottery business competitive and profitable. With the right planning, funding, licensing, and software solutions, your business can navigate the complexities of the betting industry and achieve lasting success.

Last updated
October 2, 2024
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