New Payment Systems for iGaming Sites: Prospects and Problems

Having obtained the necessary licence, it is essential to find a reliable financial provider. This will speed up the establishment of the business, making it more secure, recognisable, and profitable.

Experts of the Online Casino Market company will tell you about new settlement methods, the nuances of finding a reliable software vendor, and relevant technologies in the industry.

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About Financial Services for Casinos

This is a system that helps transfer funds from one person to another (for example, from a player to an operator or from an entrepreneur to a B2B partner, etc.). All functions are combined in a cross-platform interface, thanks to which the process of using program components becomes as convenient and safe as possible.

The success of an iGaming startup directly depends on the choice of a financial provider. Fast and secure transactions can attract a huge number of customers to the website, including a sceptical audience. Interruptions in the transfer of money, on the contrary, scare potential clients away and deprive operators of income.

iGaming projects traditionally fall into the High-Risk category. It also includes Forex trading, medicine, online exchangers, and charitable foundations. All these areas are characterised by increased requirements for checking the movement of funds and are classified as 7995 according to the MCC code.

Not all providers work in the sector due to the strong probability of fraud in it. However, there are also many companies that specialise exclusively in the casino and betting industry.

Such suppliers are familiar with:

• features of the market;
• advanced anti-fraud tools;
• rules for accepting and processing money transfers.

Prospects for New Payment Aggregators in the iGaming Field

Today, there are many available options. Some of them (for example, Visa or MasterCard) are well known to players all over the world and others (like Privat24) are created for a local audience.

Operators can enter into an agreement with each financial system separately or choose the one that already combines popular casino solutions. The second option looks preferable since it relieves entrepreneurs from many problems.

A payment gateway is a service delivery model, in which case an intermediary opens a merchant account and uses it to conduct casino transactions. Business owners receive a fully prepared tool capable of processing various transfers. There is no need to integrate any additional programs or conclude contracts with banks.

Most experts believe that financial systems are the future of the gaming and sportsbook industry. Today, more and more operators are choosing this affordable and economical settlement method, which significantly reduces the costs of launching a digital entertainment platform.

The assortment of the Online Casino Market studio includes the following branded solutions:

• Moneygrator;
• Paycos;
• PayTM;
• Start2Pay, and many others.

Let us consider the advantages of payment gateways for gambling portals.

Versatility

Entrepreneurs do not need to connect each financial service separately since they are already combined in a single multi-channel tool.

Modern settlement methods support:

• Internet acquiring;
• direct bank wires;
• operations using electronic wallets;
• mobile and voucher transfers.

The list of payment instruments provided by aggregators is constantly expanding with new useful products that make the iGaming business easier and more profitable.

Comfortable Management

All transactions go to a single merchant account. This greatly simplifies the control over transactions.

Most brands offer a convenient CRM system for tracking money transfers, generating accounting and financial reports, and managing operations. Many services also support currency exchange, emergency withdrawals, and other functions.

Increased Security

All payments take place through encrypted SSL channels. This provides additional protection against hacker attacks, theft of funds and confidential information, as well as attempts to destabilise the work of gaming sites.

Advantages of reliable anti-fraud monitoring:

• excludes criminal actions;
• reduces the number of chargebacks;
• improves the liquidity of the casino business.

Financial Benefit

In practice, paying for the services of an aggregator turns out to be much more profitable compared to working with financial systems directly. In the first case, commissions and fees are traditionally lower.

It is much easier and cheaper to cooperate with one company than to receive the same services from different providers.

The integration of program components takes less time than the preparation and conclusion of an agreement with several enterprises. Besides, each software vendor has a unique set of requirements for the design of a gambling website and installation of products. When working with an aggregator, there are no such problems.

Challenges in Finding a Payment Service Supplier

It is necessary to choose a financial aggregator very carefully. There are many aspects that need to be taken into account to avoid mistakes within the follow-up work in the market.

Absence of a Licence

Only legal systems can provide businesses with reliable settlement methods.

To obtain a permit, companies must have:

• legal address;
• real office;
• financial guarantee;
• special accounts, etc.

In many ways, certification of payment services is similar to the process of legalising an online casino. However, in the first case, the specifications for applicants and the conditions for receiving the document are stricter.

Some licences allow entrepreneurs to legally work in several markets. In Europe, authorities recommend that providers obtain local permits. For the United Kingdom, this is the FCA, CySEC is for Cyprus, and BaFin is the German analogue.

Misunderstanding the Geography of Payments

Operators who are planning to provide gaming services in a specific country should pay more attention to its most popular financial aggregators. Global companies, on the other hand, need to work with global providers. These are Visa, MasterCard, PayPal, Neteller, and other well-known brands.

Low Conversion

In the casino niche, this is the ratio of successful transfers to the total number of attempts (including unsuccessful ones).

Such an indicator as 85% is considered positiveб but in the entertainment sector, several factors can reduce this figure:

1. Fraud monitoring. It is important for firms to maintain a balance between protection from attackers and unjustified blocking of transfers made by honest players. Additional checks are usually launched due to the excess of card limits, an increased volume of transactions per day, and local differences (a mismatch between the payer’s IP address and the card issuance region).
2. Low level of financial literacy of casino visitors. The conversion rate is negatively affected by incorrect data entry, insufficient funds on the person’s card, and attempts to circumvent the law (for example, the deposition of funds through credit cards in jurisdictions where this is strictly prohibited). The decision to post full instructions on the gaming site will save its owners from many problems and help them increase conversion.

When choosing a financial provider, it is necessary to find out whether the company offers personal anti-fraud settings. They take into account the type of business, the nature and frequency of payments, as well as common risks and effective security measures. All of this contributes to the growth in the online casino’s popularity and profitability.

Blind Choice of an Aggregator

Before the start of cooperation, it is important to assess the advantages and risks of interaction with a specific brand, its reputation, and the relevance of the offered solutions. Currently, there are plenty of companies in the market, but only a few of them work legally and provide high-quality financial services.

Inconvenience of the Payment Page

According to statistics, too long approval and many fields to fill out scare players away. If business owners offer a simple algorithm with a minimum of actions on the part of customers, then it significantly increases the number of transactions (from 25 to 30%).

One-click transfers are also gaining popularity. In this case, a simplified form is used. If players have already entered the details of their bank card or electronic wallet, the system automatically remembers this data and does not ask for it next time.

New Technologies in the Casino Payment Industry

The entertainment niche, like other sectors of the economy, is growing rapidly. Moreover, many business models and methods of transferring funds are constantly emerging.

Financial Aggregators Based on Blockchain

Most new systems use this advanced method to reach the target audience from countries with an ambiguous attitude of government towards gambling. Transfers via distributed ledger technology are becoming more and more in demand due to fast and anonymous operations and a high level of confidentiality.

Blockchain payment services are actively conquering the market. If 5 years ago, they were treated as a fleeting trend, then today, this phenomenon is considered one of the driving forces of the casino and sportsbook industry.

Key advantages of the technology:

1. Decentralised transfers. The introduction of such transactions reduces risks that may occur during their processing. The solution works based on a distributed registry without the involvement of banks, commissions, customs authorities, and other intermediaries.
2. High speed. Only 3 parties are involved in the transfer: the payer (user), the recipient (casino owner), and the validator (payment system). Thanks to this, transaction service fees are significantly reduced, and commissions tend to zero.
3. Security. Assets in the blockchain are represented by cryptocurrency tokens that cannot be counterfeited. Their safety level is significantly higher than that of fiat money. It is possible to deposit and withdraw funds in Bitcoins, Litecoins, Ethereums, Thrones, etc. All transfers are encrypted using advanced algorithms.
4. Wide range of stakes. On a single spin, gamblers can bet 0.00001 BTC, 1 BTC, or even more. This attracts many players to the iGaming platforms.

Most experts call blockchain-based payment systems the future and present of the entertainment industry. Therefore, it is worth taking a closer look at such reliable and multi-tasking products.

The Online Casino Market catalogue includes cutting-edge crypto services. These are Alphapo, B4U Global, BitGo, and other aggregators.

Financial Systems With AI

Artificial intelligence is a set of programs with elements of machine learning. They can imitate human behaviour and collect, remember, or analyse information. Technology is profitable for many sectors of the economy, including gambling.

Visa international provider uses AI to predict real amounts deducted from cards. The Smarter Posting feature is available to all operators who have installed the company’s software.

At the beginning of the year, Mastercard announced the launch of the Decision Intelligence Pro AI model. The product is designed to evaluate suspicious transactions in real-time and determine their legitimacy.

The algorithm is trained on data from 125 billion transfers that pass through the brand’s card network annually. AI scanning for fraud will take only 50 milliseconds.

Advantages of using artificial intelligence in financial services for casinos:

1. Faster processing of transactions. The use of the technology simplifies automation and optimises tasks that were previously carried out manually. All this increases the productivity of payment aggregators, improves the quality of work, and minimises errors.
2. Protection against fraud. AI programs make it easy to identify intruders, unusual operations, or atypical actions of players, casino employees, and banks. Technology reveals implicit associations even where, at first glance, everything is correct.
3. Optimisation of KYC procedures. The natural language processing function, which is part of the AI, makes it possible to read documents, interpret information, and cross-check external source documents. All this improves the quality of KYC algorithms and allows entrepreneurs to quickly separate scammers from honest customers.

The Main Things about Settlement Methods in the iGaming Niche

The success of this promising business largely depends on the quality of the financial system.

Key features of the product:

• Entertainment for money is a sector of the economy with a high level of risk. Therefore, it is essential to carefully approach the search for a payment provider. Operators should take into account reviews from real clients and the industry experience of competitors.
• Currently, more and more project owners prefer to work with aggregators. These are universal instruments that combine many settlement methods in a single unified interface.
• Advanced technologies are actively used in gambling, and it has a positive effect on the casino’s financial policy. These are mostly blockchain and artificial intelligence. They improve the security of transfers, ensure the variability of transactions, and optimise KYC procedures.

From the Online Casino Market studio, you can order turnkey iGaming platforms, modern sportsbook and poker software, White Label resources, and other profitable projects.

We also offer the following comprehensive services:

• development of HTML5 slots based on individual sketches;
• creation of VR casinos;
• security software installation;
• integration of affiliate services;
• promotion of entertainment websites, and much more.

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