We implemented this a couple of months ago at Purple Lounge, and haven’t really seen anything to suggest a drop-off in depositors. Perhaps if a player is not aware of this procedure, and has not enrolled in the scheme it could put him/her off, but I think as its use becomes more widespread people will get used to it, and it could even increase player trust in properties which use it.
The big benefit for both casinos and affiliates is of course the added security and protection from player fraud.