Gambling payment processing: a brief grasp of current situation
February 19, 2024
5 min
Gambling payment processing remains controversial for many reasons. Gaming startups struggle to enter the industry due to the lack of transaction history and credit. Big online gambling businesses usually imply huge volumes of turnover, and the vast majority of companies are established offshore. So, the major issue is that not every payment provider wants to offer payment processing for online gambling due to its high-risk nature.
Despite these facts, the industry is actively functioning and developing. Global online gambling revenue is projected to reach $131.9 billion by 2027. Gone are the days when the only way to tame the gaming craving was to go to a casino. More and more companies are moving their businesses online.
Popular payment solutions for online gambling
The latest innovations have not only promoted the expansion of the online gambling industry but also influenced gambling payment processing, causing certain changes in payment methods.
First of all, credit cards are not an option in certain geographies. Legislation changes in the UK made credit card payments on gambling platforms impossible. The reason is quite simple and even noble — to prevent gambling fans from building up massive debts on their cards. Still, the use of debit cards remains popular, but it is risky to link a debit card to your account if you’re not sure about an online casino hack-proneness.
Another method slowly petering out is bank wire transfers. This happens due to the harsh fees and long-term settlement, which can take about a week in some cases.
E-wallets, like PayPal, Neteller, and Skrill, keep on the rise and prove that online gambling payments can be really secure. Offering an extra layer of security, popular e-wallets protect players from hackers and fraudulent actions. Moreover, some of them offer user-friendly mobile apps, promoting easy payments on the go.
Payment processing for online gambling
What do merchants usually expect from a gambling payment processing solution? Sure, perfection is not a limit, but there are basics that are important for online gambling businesses.
- Hassle-free payments and payouts. Gambling implies both payments – the players' deposits and payouts — their winnings. So, smooth pay-ins and payouts are the basis.
- Range of payment methods. The best suitable payment methods for transactions are usually defined by their volume, geography, etc. As far as both merchants and players (payouts and pay-ins) can be different, it’s good for a payment solution to support various methods.
Since merchants in the emerging gambling markets may have no access to popular payment methods, enabling them to process local payment methods is a huge add to competitiveness.
- Recurring billing. The subscription model is quite popular with online gambling platforms, so supporting recurring payments is a plus.
- Integration with prepaid card providers. This option is convenient for many gamblers. Some cards can be easily reloaded and allow players to pay and get paid with no hassle.
- Anti-fraud mechanisms. As long as the reputation of gambling cannot be called a clean sheet, fraud and chargeback prevention mechanisms will not go amiss. Ideally, a payment solution for online gambling should feature its own antifraud system, but taking advantage of third-party service providers is a way out too.
Future outlook: cryptocurrencies steadily advance
According to Casino Reviews.net, online casinos that accept crypto payments — i.e., payments using virtual currencies — are quite popular. This scenario is quite predictable since it’s about a universal currency that can be used anywhere and by anyone. It seems that the world of online gambling is the perfect place for crypto due to its security, reasonable cost and speed of transaction processing, and accessibility. Following the trends, cryptocurrencies appear among the most used casino payment options. In most cases, these are Bitcoin, Litecoin, and Ethereum. The advantages of this currency type are obvious — transactions are rapid, non-reversible, exclude deposit/withdrawal fees, and allow players to maintain their anonymity.
Optimists believe that bans on online gambling and unregulated online entertainment will be a thing of the past. Online casinos across the world will be licensed, and gamblers will have ultimate security and control by the government. The latter will receive certain profits from such establishments. Small online casinos will most likely merge into single networks. These are only subjective assessments, although not devoid of credibility.
How Corefy helps online gambling businesses
We provide online gambling businesses with a reliable and stable solution that helps them process high-risk payments and payouts hassle-free. Corefy's payment orchestration platform offers hundreds of ready-made integrations that allow for processing high-volume transaction flows and risk diversification. Our routing and cascading engine paves the smartest way for each transaction to increase conversion rates and profitability. Relying on our solution allows you to optimise costs, mitigate risks, and maximise conversion.
Get in touch with our team and get the most relevant offer for your business needs.
