Technology/Services

Cashless Lottery Payment Launches in C-Stores

Consumers pay processing fee on mobile device
tablet graphic for lotto
Photograph: Shutterstock

BOCA RATON, Fla. BuyLottoNow has released a new cashless payment platform that allows convenience stores to accept payment for lottery draw games and scratch-off tickets on a mobile phone.

BuyLottoNow is bringing its proprietary decoupled debit mobile payment platform without processing fees to c-store operators. The platform charges consumers a convenience fee of 30 cents for each transaction, regardless of the transaction size, for the convenience of paying for lottery products with their phone.

In addition to avoiding processing fees, BuyLottoNow can make lottery a loyalty program through email campaigns. Unlike cash, the platform knows who a retailer's lottery players are, what they are buying and how much they are spending so the retailer can employ more targeted offers to these customers.

Today, online lottery sales are in their infancy with approximately $2 billion in sales. BuyLottoNow estimates that the 13 states currently selling lottery products online will reduce c-store retailers' commissions by $126 million this year alone. The pandemic has caused states to accelerate their interest in online lottery sales, pushing projections to $262 million in reduced commissions to retailers by 2025, it said.

"The BuyLottoNow solution eliminates the transaction fee for the retailer which is their number one concern. In fact, it may very well be the first time a payment system isn't charging the fee to the retailer. Plus, the extra benefit of a loyalty engagement program makes participating retailers a VIP destination for lottery players," said Joe Randazza, CEO of BuyLottoNow, who also co-founded National Payment Card Association. "Cash is suppressive to the impulse of high jackpot games or $20 scratch-off tickets. Cashless payment will bring a lift in sales and commissions."

Boca Raton, Fla.-based iVertical Payment Network, doing business as BuyLottoNow, is a financial technology company with a proprietary cashless payment platform designed for the state lottery industry. The platform is a payment interface into a retailer's existing point-of-sale (POS) terminals. iVertical Payment Network provides payment products to c-stores and implements data security for mobile payments.

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