Have you ever gambled? If so, then you are one of the 26% of the global population that have tried gambling at least once in a lifetime. According to TGM Research, around 4.2 billion people play casinos once a year. Talking more specifically about the geographical factor, a study reveals that 56% of the surveyed across 44 countries gambled at least once in the past 12 months.
However, even though the global iGaming market is massive, the process of integrating payment systems might be quite problematic yet still profitable. Multiple reasons drive challenges connected to payment integration in the gambling platform, which we discuss in this article.
But first, let’s see how fast the iGaming industry has grown in recent years.
Brief Overview of the iGaming Industry's Growth
The online gambling industry is undoubtedly one of the fastest-growing sectors nowadays. According to the Statista report, in 2024, the market’s global revenue is projected to reach $107.30 billion. Moreover, by 2028, the total Compound Annual Growth Rate (CAGR) is expected to grow even higher — up to $138.10 billion.
When discussing the drivers of such massive growth, it’s worth mentioning the technological leap over the years. These days, any iGaming player has access to the most innovative solutions, such as virtual reality and augmented reality gaming experiences. Moreover, blockchain and cryptocurrency are other crucial technological innovations that have hugely influenced industry development.
But still, while choosing a gaming platform, customers look not just at the game selection but at offered payment options for online casinos, which significantly affect the whole experience.
Now, let’s dive deeper into the role of the payment solution in the iGaming industry, both for players and gambling brands.
The Significance of Payment Systems in Attracting Players
A key focus for successful gambling companies has always been customer acquisitio,n driving the new audience with variety of bonuses and games on the platform. No doubt, professionally set marketing campaign attracts a new audience and expands the customer base. However, what’s even more vital is building a long-term relationship with the customers. The strategy of combining engaging content with reliable payment methods on the gambling website is the best way to ensure that the customers remain engaged and loyal to the brand.
The formula of a successful and trusted online gambling brand is a satisfying payment experience. Speaking of the actual payment steps, it’s important to highlight deposits and withdrawals.
According to Paysafe statistics, 36% of online sports bettors consider the speed of a transaction while making a deposit as the most essential factor. Another part of the responders (35%) said their choice of a betting website depends on the security measures for the payment journey. And 32% of players consider the ease and accessibility of making an actual deposit and withdrawal. According to this statistical data, it’s safe to say that operators must guarantee security, speed, and reliability to the players to become one of the most trusted gambling brands in the market.
The Role of Payment Systems in iGaming
Here are a few specific factors that prove the cruciality of the payment service on the online gambling platform:
- Customer convenience
According to YouGov statistics, 63% of gamblers worldwide prefer online gambling to offline gambling experience. One of the reasons for this is convenience in all senses. An adequately set payment system on the gambling website allows players to make fast deposits and withdraw without time-wasting. It’s not a secret that a modern customer doesn’t like to wait, especially regarding finances.
- Global reach
Although iGaming brands can face several challenges connected to the region issue, payment systems enable online gambling operators to offer customers a wide range of payment methods on a global scale. Therefore, companies aiming to promote their brands to a bigger audience must understand the cruciality of an adequately integrated payment system on the platform.
- Security and trust
When it comes to finances, it’s crystal clear that users always prioritize security and safety for their personal and payment data. By integrating a secured payment system into the iGaming platform, the brand is building a solid and trusted relationship with its audience base, proving its safety.
- Compliance and regulation
By entering the online gambling business, operators are obligated to follow strict regulations provided by local authorities. Here is where payment systems come in handy. Due to the built-in features and protocols that ensure compliance with regulations related to Anti-Money Laundering (AML), Know Your Customer (KYC), and responsible gambling practices involved in the payment systems, iGaming operators can keep up with compliance standards.
- Fraud prevention
The modern payment system is the key to fraud management due to its innovative approach. Operators have access to effective fraud detection and prevention, which minimizes the risks of fraudulent actions on customers and companies.
Types of Payment Solutions in iGaming
Nowadays, the selection of the available payment methods provided by the operators is quite impressive. Users are able to perform financial operations by using any device, which is expanding their abilities. So here are the highly demanded payment solutions in the iGaming sector:
Credit and debit cards
Credit and debit cards have been the primary methods among other possible options for a long time. However, recent years have demonstrated a significant increase in demand for alternative payment methods. Credit and debit cards established a trusted and always-working reputation for convenience, speed of transactions, and accessibility.
E-wallets
Since the massive digital jump worldwide, many sectors have become adaptive to payment solutions such as electronic wallets. Users around the globe choose e-wallets for several beneficial reasons, such as anonymity in payment, speed of transaction, accessibility, and user-friendly interface on the app.
Bank transfer
This payment solution is often used for both deposits and withdrawals. Because of the direct connection with the user’s bank account, fewer parties are involved, minimizing the risk of fraudulent actions. Moreover, bank transfers as a payment method are universal because they are regulated independently of the region or jurisdiction.
Cryptocurrency
A cryptocurrency solution fulfills all customers’ needs, such as anonymity, lower fee rates, and a decentralized network.
Factors Influencing Player Preferences
In addition to all the listed factors that players worldwide consider while choosing a payment method for their iGaming experience, it’s worth mentioning other quality criteria.
- Flexible approach
The individual approach of the payment provider is direct proof of the level of consideration for users. While some may prefer cryptocurrency, others use e-wallets only. The variety of payment options shows customers how wide their abilities are while using a certain platform for gambling.
- Technical support
Even though a failed payment operation is not always the fault of an online casino operator, users consider the platform the primary problem-solver. The faster the operator coordinates the problem-solving process, the higher the trust among the players.
- Keeping up with trends
A payment service that aims for product innovation gains an edge over competitors. Initiatives that improve the speed and efficiency of payment gateways and regular updates enable businesses to stay abreast of industry advancements and outpace slower competitors. This becomes another critical factor for successfully promoting online casinos: as turnover grows, the capacity of the payment service must also scale accordingly.
Challenges and solutions in payment integration
Payment integration into the iGaming business might come with a set of a few specific challenges for which companies must be prepared:
- risk of fraudulent actions;
- regulation;
- adaptation;
- data fragmentation.
However, addressing these challenges, a few solutions can provide a successful outcome where the operator perfectly integrates the payment system on the platform, and customers get an innovative payment solution.
Integration strategies
Well-calculated planning and expert testing can significantly streamline the integration project. It’s crucial to provide a detail-attention approach to reduce the possible challenges that might appear during and after the integration process.
API integration excellence
A business that invests in the APIs doesn’t face any issues with communication between different systems.
Cross-platform payment solution
Prioritizing the comprehensive approach in multi-platform services enhances user experience and expands your market reach.
Conclusion
The payment system is an indispensable element of the modern iGaming industry, playing a vital role in structuring the whole fundament of the relationship between customers and operators. As the iGaming landscape continues to evolve, payment systems must adapt to emerging trends and technological advancements to meet the ever-changing needs of players and operators alike. By prioritizing innovation, security, compliance, and reliability, a payment service provider is a strong partner for iGaming operators and delivers exceptional gaming experiences to players worldwide.
