Chief Sales Officer at Corefy
Gambling activities can be classified as either games of pure chance or those combining luck and skills. Since the most significant interest is now in online gambling activities, we’ll focus on the payment processing of online casinos, sports betting, lotteries, poker rooms, etc.
Gambling spans games and other activities, the result of which largely depends on the will of chance and slightly on players’ skills. The very first site offering online gambling services was launched more than 17 years ago, giving a start to many other portals providing services in the field of games on the Internet.
The industry of gambling is globally developing now. Moreover, it can also compete with other financial sectors. The size of the online gambling market amounted for almost $56 million in 2019 and specialists estimate its continuous growth in the future. No wonder more and more merchants find interest in details on gambling payment processing. Let’s figure them out.
5 criteria for a high-end payment processing solution
We at Corefy noticed, that merchants behind all of these gambling businesses usually have something in common. Exactly, they expect the same things from gambling payment processors. Payment processing is vital to their business, so it is essential to find a reliable payment solution. Let’s see what features will set you apart from other PSPs.
1. Smooth payments and payouts
These are the first things merchants expect to run smooth. Gamblers pay money to play, so payments should be as smooth as possible. The same holds for payouts — when players win some amounts of money, they want to receive it hassle-freely. So, gambling payment providers, who want to stand out among the competitors, must be able to process all incoming and outgoing transactions seamlessly.
2. Various payment methods
It is crucial for both gamblers and merchants to be able to choose. The gambling industry is about huge volumes of cash. So, SWIFT or SEPA transfers might do good for high-volume transactions, but smaller ones may require other methods. It is essential to give consideration to all of them and support different payment methods.
3. Global reach
Gambling represents an international business sector, that is why local payment methods are vital for consumers’ convenience and retention. Accepting payments and the ability to make payouts with local preferences (i.e. currencies and methods) is critical, for it helps to build and nurture relationships with more customers.
- Prepaid cards. It’s all about gamblers’ convenience. Prepaid cards (especially the reloadable ones) appear to be quite popular, thus, important to give consideration. Integration with new technologies of prepaid cards allows PSPs to win the gambling payment processing market.
- E-wallets. Another useful payment method, but not all of them will suit. It is important to research and understand what e-wallets your clients prefer according to the geographical criteria. One important thing to keep in mind — all the e-wallets should be relevantly certified for you to avoid issues with chargebacks or fraud.
4. Recurring billing
The subscription payment model is quite widespread among gambling merchants. Providing recurring billing to their customers, they solve many issues and attract more customers. So, offering smart recurring payment solutions is a good idea for gambling payment processors.
5. Fraud and chargeback prevention system
The reputation of gambling is a bit tarnished, so it is essential to offer proper chargeback and fraud prevention systems. It can be your own system or some kind of outside software.
So, we see that various payment methods and proper chargeback and fraud prevention systems are essential for gambling payment processing. It helps to diversify risks and gain more customers.
Though numerous regulations prohibiting gambling in certain countries and regions exist, it is still out there and thriving. Moreover, experts estimate its market growth in the nearest future. Therefore, new merchants and gamblers will appear. Offering a feature-rich payment processing solution for gambling, you’ll be able to take on this market sector.
Oleg serves as the Chief Sales Officer of Corefy, a British fintech startup. With banking, media, marketing and sales assignments across 18 countries, he brings a wide range of expertise in equipping Corefy for massive growth. Oleg is a public speaker. He addresses businesses and professional groups across Europe.