Payments, alongside licensing, is one of the most crucial areas impacting how iGaming businesses operate.
And yet, too often iGaming operators find themselves being underserved by payment providers available. The high risk nature of the iGaming industry makes it difficult for legitimate businesses to find payment partners willing to work with them, let alone provide them with a solution which supports the high-speed, cross border payment flows their customers need.
In recent years, this has been changing, with several developments in payments across Europe enabling iGaming businesses to offer a better player user experience.
A closed loop payment system is a way in which you can move funds within a shared banking ecosystem. Funds are loaded on to an account and then can be passed between accounts within that ecosystem instantly – like PayPal or AliPay, for example.
These systems benefit from the key advantage of having a high approval rate, making them attractive in high-risk industries. What’s more, by avoiding card schemes, the possibility of chargebacks is removed, and businesses do not incur the standard fees that come with card payments.
Closed loop systems, such as the one offered by FinXP, also make it easy to transfer funds internationally. iGaming is international by nature, people from all over the world want to play. While the tech for making this happen is well established, international payments have always been an operational nightmare. With closed loop systems, cross-border payments are not only easy, but made in real-time.
Due to these advantages, industry experts predict closed loop system to grow in popularity in the coming years.
No one in the world wants to receive funds slower, and in iGaming, speed is a huge factor in brand loyalty. A 2020 survey revealed that 8 out of 10 iGaming players view withdrawal speed as an important factor in choosing a gaming company.
Furthermore, payout speed can also contribute to increased revenue, with 1 in 4 players stating they would deposit more money if they had access to instant withdrawals.
The consumer desire is there, and the infrastructure is finally catching up. The SEPA Instant payment rail is becoming an increasingly popular option across Europe, allowing payments to hit bank accounts in a matter of seconds.
Using a modern payment partner like FinXP, businesses can easily access this payment rail.
With the number of people holding cryptocurrency at an all-time high, there is an increasing demand for crypto to be an accepted method of payment on iGaming sites.
Being digitally-focused and convenient solution, it suits many players. But it’s not just about consumer demand, the authorities are also recognising its value, with the Malta Gaming Authority now allowing digital assets as player deposits.
Over these past few years, the payments industry has become increasingly receptive to the needs of the iGaming industry. Long-held pain points are being solved by more flexible payment solutions that allow both players and operators to get paid faster in ways that suit them.
FinXP specialises in solutions such as closed loop payments, Euro IBAN Accounts, and pay-out solutions, that all help iGaming operators build the customer experience they want and raise the standard of payments in the industry.
More information on FinXP’s payment and banking solutions for iGaming businesses can be found on their website, or subscribe to their newsletter to receive occasional industry and company updates.
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