The iGaming sector is dynamic and faces numerous challenges on its way to expansion. Online casinos have numerous challenges, ranging from innovative iGaming technologies to routine revisions in rules and regulations. Thus, it is critical to pick a casino payment gateway and a gambling payment processor that is suited to the task.
The crucial role of a reliable payment solution in iGaming
The iGaming industry comprises a wide range of industries, including online gambling, internet gaming, online casinos, sports betting platforms, and more.
It is one of the most heavily regulated corporate sectors in terms of law and taxation. For example, in France, the taxation rate for online operators based on GGR is 37.7% for racing, 55.2% for sports betting, and 44.5% for retail sports betting.
Meanwhile, in Germany, taxation is based on a percentage of stakes: beginning in 2021, the government will tax online slots and poker at a rate of 5.3% of revenue.
The iGaming industry comprises a wide range of industries, including online gambling, internet gaming, online casinos, sports betting platforms, and more.
It is one of the most heavily regulated corporate sectors in terms of law and taxation. For example, in France, the taxation rate for online operators based on GGR is 37.7% for racing, 55.2% for sports betting, and 44.5% for retail sports betting.
Meanwhile, in Germany, taxation is based on a percentage of stakes: beginning in 2021, the government will tax online slots and poker at a rate of 5.3% of revenue.
Countries have varying sets of policies governing the sector and gambling sites. Online gambling and iGaming enterprises must utilize a dependable and advanced gambling payment gateway and gambling payment processors that follow main legislation and provide advanced features and solutions.
Exploring popular online casino payment methods
One of the most essential aspects that casino payment processors and payment gateways may offer is the ability to accept a wide range of payment methods. Let's look at the top online gambling payment methods.
Credit and debit cards
Many gambling payment processors provide casino payment solutions mostly in the form of debit and credit cards. Although numerous other payment options have emerged in recent years, the importance of bank cards cannot be overstated. After all, the cards have a long-standing reputation and are simple to get and utilize.
Debit and credit cards play an important part in online gambling payments for various reasons.
- First, debit and credit cards are widely accepted globally, including at numerous online casinos.
- Ease of usage: It is simple to use cards to make gambling payments. Clients enter payment information and finish the transaction, simplifying deposits and withdrawals.
- Deposits made with a credit or debit card are usually quick, allowing gamers to gamble online without delay.
- Security procedures: Major card issuers have strong security procedures in place to protect customers from fraud. It may feature encryption, fraud detection, and buyer protection services that assist users in the event of fraudulent transactions.
Overall, banking cards are a convenient and frequently used payment method that a payment provider/payment gateway can provide for online payments, but users should be aware of any associated fees and constraints that apply to their situation and area.
E-wallets
In the iGaming and online gaming industries, e-wallets are becoming increasingly popular among clients and gambling payment processors. They provide two significant benefits to online casinos:
Customers who gamble online can easily top up their accounts without having to input detailed financial information for each transaction.
- The most noticeable difference between digital wallets and banking cards is your anonymity: digital wallets allow you to make transactions without directly exposing your bank or card information with online casinos, which improves privacy and reduces the danger of fraud in some way.
- An e-wallet serves as a conduit between a player's financial information and online casinos, lowering the chance of sensitive data being exposed during gaming transactions.
- Speed and efficiency: One of the primary benefits of e-wallets is the ability to conduct transactions quickly and efficiently. Withdrawals to e-wallets are typically faster than other options, allowing players to get their winnings sooner.
- Global Accessibility: Many e-wallet systems are available internationally, allowing players from many jurisdictions to conduct iGaming transactions. This payment method also facilitates mobile payments.
- User-friendly: They frequently have easy interfaces and mobile apps, allowing online gamblers to effortlessly manage their finances, track transactions, and move monies across accounts.
Despite these benefits, certain e-wallets may impose fees for transactions, currency changes, or inactivity.
Bank transfers
Bank transfers are still a popular and widely recognized payment method offered by casino payment processors for both deposits and withdrawals.
- Bank transfers are secure since they are directly linked to a user's bank account. When dealing with a huge transaction, this is the way to go.
- Bank transfers are virtually generally accepted. They are simple to instruct and schedule.
- Such transfers are typically in accordance with banking regulations, giving them a legal means for online gambling transactions in jurisdictions where regulations are stringent.
However, in the context of iGaming, gambling payments may be delayed due to processing times or constraints imposed by law or regulation.
Cryptocurrencies
- One of the primary reasons Bitcoin payment alternatives remain popular is the privacy they provide. Some customers choose not to provide any personal information when utilizing gambling services. Cryptocurrency can also be quite useful in this area because transactions do not reveal personal information.
- Another advantage is that they do not need intermediaries. As cryptocurrencies function on a decentralized network, this payment mechanism does not require the intervention of banking institutions.
- Because of the fees involved, some people consider cryptocurrency to be one of the greatest casino payment options. As a result, online gambling payments frequently have lower fees than traditional banking methods.
However, cryptocurrencies have drawbacks. For starters, it is tough to control them. As a result, your online casino account may encounter problems. Not to add that in recent years, some scammers have taken advantage of the cryptocurrency popularity wave to make quick money while pulling the rug out from under coin holders.
Another concern is volatility. A cryptocurrency's value can change considerably over short periods of time, damaging the value of player balances and the financial viability of the online gaming platform.
Prepaid cards
A prepaid debit card provides another handy and secure option for gaming payments.
- Some of these cards have a preloaded limit, allowing customers to keep track of their spending, which is particularly useful for enthusiastic players. Clients can only spend the amount loaded onto the card, which helps them save money and stick to their budget.
- Prepaid cards are easy to get and use. Clients can buy them at various retail stores or online, load them with money, and use them to make online payments.
- The cards are frequently available to a wide spectrum of customers, including those who do not have a bank account or who are restricted from conventional casino payment options owing to their location or financial background.
- Another consideration is anonymity and security. Prepaid cards enable users to make deposits without disclosing personal banking or card information, increasing anonymity and lowering the risk of fraud.
Prepaid cards, on the other hand, may be subject to activation, reloading, or transaction fees. These fees vary based on the prepaid card issuer and affect the total cost of using prepaid cards. As a result, it is critical to employ multiple payment methods.
Understanding payment gateways in iGaming transactions
Now that we've identified the finest payment options, let's look at how a casino payment gateway works so you can make an informed decision.
What are gambling payment gateways?
At its core, the casino payment gateway serves the same role as traditional payment gateways for e-commerce, SaaS, and other enterprises. It is a financial solution that enables the safe communication of payment information between a customer's bank and a business. Payment gateways encrypt payment data received from consumers before forwarding it to a payment processor, who then processes the transaction.
However, there are distinctions. The iGaming payment gateway only works with organizations from this industry. Because of the significant risk associated with iGaming transactions, there is a demand for these specific payment gateways. Thus, a legitimate iGaming payment gateway for online gaming must have the following characteristics:
- Comply with all the laws and regulations required to process gaming payments.
- Be able to handle large website traffic.
- Be able to process large amounts of transactions at once;
- Have excellent, frequently updated security and fraud prevention systems in place.
Can payment gateways enhance the gambling experience?
Having a reliable online gambling/online casino payment gateway improves several operations for the iGaming organization.
- This type of payment gateway improves the overall experience of customers. Overall, casino payment processors can manage a larger volume of transactions in fewer seconds. It enables speedier deposits and withdrawals, and no delays will disrupt the gamers' enjoyment.
- Online casinos can use appropriate payment options. Such payment gateways recognize and integrate with the most commonly used payment methods in the iGaming business. It is always ideal to provide clients with a range of payment methods in order to expand your clientele.
- Prioritization of security. To operate with iGaming enterprises, gambling payment processors must go through a number of procedures to ensure compliance and regulation. Gambling payment processors frequently provide additional capabilities for online casinos such as fraud monitoring, chargeback ratio reduction, risk mitigation, and more.
- Payment pages were optimized. To preserve brand identity, iGaming companies require configurable and adaptable payment pages that may be used on websites and applications. Finding a gaming payment gateway and merchant account that can offer such flexibility is essential.
In the interim, check out Evoverse's financial services for your iGaming business! We are an Electronic Money Institution regulated and monitored by the Bank of Lithuania that offers dependable and safe services. Evoverse is available online and can be accessed via your PC, laptop, or mobile devices.
Open a customized business account online and get access to all of our tailored financial services:
- Fully automated API for mass payouts.
- Multicurrency accounts (EUR, USD, GBP)
- Traditional and other payment methods (20+)
- Issuing virtual and real Visa cards in bulk
- Covert Fraud Prevention System
- Advanced expense tracking and reporting
- SEPA batch payments have a broad coverage of the SEPA region.
- Dedicated account manager, available to offer professional help
What to consider when choosing the payment solution for your casino site
Now that you understand why your online gambling business requires a gambling payment gateway, let us go over some criteria to consider when selecting a payment processor.
Security and fraud prevention
The safety of gambling payment processors and the services they offer to the iGaming industry must be your top focus. When selecting a payment gateway, the most important security features to consider are:
- Anti-fraud systems that detect and prevent fraudulent transactions, hence reducing the amount of chargebacks;
- Data tokenization encrypts all important payment information to prevent information breaches.
- Real-time transaction monitoring, which helps to prevent fraud by recognizing suspicious actions;
- Chargeback warning systems notify retailers of chargebacks before they occur, allowing for timely returns.
Transaction speed
It is one of the top goals for any iGaming company and payment processor that provides such solutions. Everything comes down to two things:
- Following player preferences;
- The ability to handle enormous volumes of transactions.
The first one is simple: you don't want your clients to be distracted by technological issues or annoyed when their payments don't go through. This can disrupt many people's entertainment immersion, prompting them to quit your website and seek alternative online gaming services. The casino payment solution and payment gateway you are looking for must also be able to process a large number of transactions at the same time, as well as have the essential fraud and chargeback prevention measures to avoid disruptions to your website's operations.
Global accessibility
It is one of the most difficult criteria that a casino payment gateway/processor must meet in order to be successful. After all, they must fulfill three critical needs of online casinos and other iGaming companies:
- Access to several countries.
- Compliance with regulations.
- Payment options are diverse.
As an online casino, you must extensively evaluate whether the payment processor is skilled enough to meet these three requirements.
Compliance and regulation
As previously said, security is critical for iGaming enterprises, and compliance with the main legislation can help to mitigate this risk. The iGaming payment processor you intend to partner with must be licensed and comply with.
- Payment Card Industry Data Security Standard (PCI DSS)
- The General Data Protection Regulation (GDPR) and/or other data protection laws
- Anti-money laundering (AML) regulations
- Regulatory requirements for gaming activities established by the jurisdictions in which they operate;
- Know Your Customers (KYC) requirements.
Cost and fees
Last but not least, you should examine the cost of employing the gaming payment processor. Typically, there are several prices for such services:
- Account opening and maintenance fees
- Payment processing fees and associated costs.
- Transfer fees;
- Currency conversion:
- Additional fees for chargeback/fraud protection tools.
- Additional fees apply when using standard and alternative payment methods.
Additional costs may apply. Make sure to look at the complete cost of the iGaming payment processor. Some companies, such as Evoverse, display their pricing on their website, while others require you to contact support for more information.
Conclusion: forging a trusted iGaming ecosystem
The casino payment gateway you choose can have a significant impact on your client's experiences and the growth of your organization. This is why financial services are such an important part of your organization, and Evoverse has all of the answers you need.
FAQs
What does a payment solution provider do?
Payment solutions companies offer financial services to individuals and businesses to facilitate Internet transactions. The major goal of such organizations is to streamline payment processing processes, allowing their clients to accept payments for their goods and services using their preferred payment method. However, payment solution/payment processor firms can provide additional financial features to improve the payment process. A gambling payment gateway serves the same purpose, but only for iGaming enterprises. As a result, they make it easier to gamble, bet, and make payments at online casinos.
What are the best casino payment methods?
The ideal payment method is dependent on the casino and its circumstances. To discover the best possibilities, a business must conduct research on its customers' preferred payment methods as well as the methods available in the nations where the casino operates. Credit or debit cards, e-wallets, bank transfers, cryptocurrencies, and other payment options are among the most popular in casinos.
What payment processing companies does iGaming use?
Not all payment processor/gateway businesses serve the iGaming sector. If you want a reputable service, Evoverse can help you make secure transactions. Other payment options include PayPal, Skrill, Neteller, and Paysafecard.
