The value of the online gambling industry is predicted to reach $127.3 billion by 2027. Providers of online gambling services like casinos and betting sites may take advantage of the booming industry by increasing the reach and convenience of their offerings.
Facilitating financial transactions is one approach.
Nonetheless, due to the high-risk character of the online gambling sector, merchants may regularly encounter challenges when attempting to set up accounts with payment gateways. The importance of picking the correct gambling payment gateway has grown as a result of the rise of money laundering and fraud in some subsets of the business.
Reasons why it's challenging to locate a suitable payment processor for your online gambling gateway
It is not uncommon for gambling sites to have trouble securing payment processing services. Many banking institutions avoid the gaming sector for various reasons.
- Extremely high turnover rates make it difficult for gateway partners to keep tabs on gambling websites and evaluate their risk levels.
- Websites with a lot of visitors are more likely to fall victim to fraud, just as they are more likely to miss anything in the shuffle when the business volume is large. Under some conditions, it might potentially be too much for the gateway to handle.
- Rates of chargebacks are quite high, which is a major problem for gambling sites.
- The potential for problems with know-your-customer (KYC) procedures, money laundering, and fraud: Gambling enterprises, and by extension gateway providers, face a significant risk from money laundering and identity/card theft.
- Gambling is often strictly regulated, so your payment gateway for casino will need to meet a laundry list of regulations before it can begin processing payments.
Online gaming sites may have a tough time settling on a payment method for these and other reasons.
How to Pick a Secure Payment Processor
In addition to the aforementioned difficulties, the gateway is necessary for companies because of a variety of other factors. The functionality of a payment gateway should include:
- Credit and debit cards are accepted by certain consumers, but an increasing number of shoppers are opting for other payment options. Payment methods might be anything from a simple account deposit to a digital wallet, a variety of currencies, even crypto, or a wire transfer from your bank.
- Maintaining a high level of customer satisfaction is essential for any online gambling business, and one of the best ways to do so is to provide speedy transactions at minimal prices. Users who demand instantaneous access to the service and little time spent dealing with payments may be discouraged by lengthy processing delays and expensive rates.
- With the rise of online gambling, it has become more important to provide secure payment methods that protect players' money and information. Gateways must be PCI compliant and provide advanced risk and fraud management to protect against anything from friendly fraud to money laundering.
- For regulatory compliance, a payment processor for an online gambling gateway must be licensed in its customers' jurisdictions. The gateway must follow local security and financial laws.
Online gaming enterprises must consider all of these issues when comparing payment processors. Your business's success depends on your ability to pick a gateway that secures your clients' money and complies with all relevant rules and regulations, while also providing a positive user experience.
