Features of Payment Acceptance for the iGaming Business
Features of Payment Acceptance for the iGaming Business
The iGaming industry is rapidly developing, and one of the key components of the success of any business in this area is the competent organization of payment acceptance. Users increasingly expect not only convenience and speed, but also the ability to pay bets using cryptocurrencies, mobile wallets, and other alternative methods. In such conditions, traditional payment solutions can no longer cope with the load and requirements. This is where innovative iGaming payment solutions from Tranzzo come into play, capable of providing scalability, flexibility, and security that meet the specifics of the market.
Features of iGaming Business
The iGaming industry covers gambling in a digital format. Platforms operating in this area offer users the opportunity to participate in various types of games, from virtual casinos to eSports betting. Unlike offline gambling, online games are convenient, accessible from anywhere in the world, and give users a wider choice of entertainment.
The key feature of the iGaming business is its high financial activity. It is important for platforms to quickly and safely process hundreds and thousands of transactions per day. This requires reliable payment systems that can adapt to user requests, providing different payment methods.
However, the iGaming industry is classified as a high-risk business. This status is associated with several factors. Firstly, the high probability of fraudulent transactions and chargebacks makes payment processing difficult. Secondly, laws in different countries often restrict the work of platforms.
In addition, high competition in the industry forces companies to offer players bonuses, instant payouts, and flexibility in replenishing their balance, which further complicates interaction with traditional financial systems.
Difficulties in Accepting Payments in iGaming
iGaming operators face numerous barriers when working with traditional payment systems. Banks and aggregators, seeking to minimize risks, often refuse to service such companies.
Even in cases where cooperation is possible, it is accompanied by strict conditions. For example, a platform may face sudden blocking of an account without explanation.
Even large iGaming companies have to pay increased fees for acquiring. In addition, there are restrictions on the number of certain types of transactions, such as international transfers, which are especially painful for platforms with a global audience.
The strictness of regulators, such as European and American financial authorities, aggravates the situation. The introduction of anti-money laundering (AML) rules and mandatory customer identity verification (KYC) complicates the process of processing payments. As a result, many platform owners are forced to look for more flexible and convenient ways to accept funds.
Payment Methods for iGaming Services
iGaming business owners have three main payment methods available:
Internet acquiring
Internet acquiring includes bank acquiring, payment systems, and aggregators that provide payment acceptance via cards and other instruments. Some services are ready to work with high-risk projects, including iGaming, but the probability of refusal remains high.
Main difficulties:
- Strict requirements. To connect, you need an extensive package of documents and compliance with the law, as well as the terms of the service.
- High fees. Due to reputational and fraudulent risks, as well as potential frequent chargebacks, services set higher fees.
- Risks of sudden refusal. Banks or aggregators can block an account without explanation, especially in the case of suspicious transactions.
Despite this, Internet acquiring remains one of the legal methods of accepting payments, suitable for large iGaming platforms ready for complex connection procedures and high costs.
P2P processing
One of the alternative methods of processing transactions for iGaming services has become P2P processing. This method allows you to bypass traditional restrictions associated with the strict requirements of banks and payment systems.
The essence of P2P processing is simple: when paying for an order, the user selects a payment method via a bank card, but instead of standard acquiring, he is given an individual’s card number for the transfer. After completing the payment, the system records the transaction, and the client gets access to their order.
However, systems offering integration of this method of accepting payments charge high fees (from 10%), and the process of receiving payment by this method is accompanied by additional risks.
Crypto acquiring
Crypto processing is an innovative way of accepting payments, ideal for international and high-risk businesses, including iGaming. Such systems do not single out high-risk companies as a separate category, cooperating with them on standard terms.
The advantages of crypto acquiring include:
- International coverage. Cryptocurrency transactions cannot be limited, which allows working with a foreign audience.
- Low fees. Cryptocurrency payment system fees average 1–2%.
- Security and privacy. Blockchain technology ensures high transaction security, and user data remains anonymous.
- No blocking. Crypto payments do not depend on banks and financial regulators, which eliminates the risk of sudden denial of service or transaction cancellation.
- Crypto acquiring is not only a reliable but also a cost-effective solution for accepting payments in today’s market, especially for high-risk industries.
Stablecoins Are a Convenient Means of Payment for iGaming Businesses
Accepting payments in stablecoins is a profitable and secure solution for businesses that allows them to reduce costs, speed up transactions, and expand their audience.
Benefits of accepting payments in stablecoins:
- Reduced volatility. One of the main advantages of stablecoins is the stability of the exchange rate. Unlike traditional cryptocurrencies, which can experience sharp fluctuations in value, stablecoins tied to fiat currency maintain price stability.
- Fast processing of international payments.
- No restrictions.
- High liquidity. Stablecoins have high liquidity, which allows you to quickly exchange them for fiat money or other cryptocurrencies.
- Low fees in networks. Cryptocurrency payment systems allow you to reduce the cost of transfers. Stablecoins are supported by various blockchains, many of which have transfer fees of no more than $0.1.
- Expanding the audience. Accepting payments in cryptocurrency gives businesses the opportunity to expand their customer base, reaching potential customers from other countries.
Wrapping It Up
A successful iGaming business is impossible without a stable, secure, and adaptive payment infrastructure. In the context of rapidly changing player preferences and tightening regulations, only modern iGaming payment technologies can ensure stability and growth. One such solution is provided by the payment platform Tranzzo, which offers comprehensive services for iGaming companies. It helps ensure compliance with legal requirements, improve transaction security, and optimize payment processes. Tranzzo supports various payment methods, including digital currencies and mobile transactions, which allow companies to remain competitive in a rapidly changing industry.