Ron Mendelson is the Director of Costa-Rica based International Business & Corporate Services consultancy firm, Fast Offshore. With over 24 years of real-world experience in iGaming Licensing and Payments, Regulatory Compliance, Tax-Efficient Corporate Structuring, Incubator and other Hedge Fund Licenses, Blockchain and Cryptocurrency related services, he advises a number of international clients on their business needs in the Americas, Europe, and beyond.
Setting up a gambling business is an exciting time, particularly in this dynamic and booming sector. But when setting up your business, there are many matters to consider. One of these is what payment solutions to provide for your players. Simply put, the more variety you provide in terms of payments, the more players you will have and the more deposits and revenue you will gain. In his latest column for Yogonet, iGaming industry consultant Ron Mendelson analyzes the various payment methods must-haves.
For many years, credit and debit cards have been the preferred methods for online payments of various kinds. In the online gambling sector, debit cards, in particular, remain incredibly popular. In some regions and under some regulators, credit cards are not allowed for deposits and withdrawals, so this is something to be cautious of.
While many other options are available for payments in 2022, providing credit and debit card payment solutions is a must. Typically, these should be compatible with Visa, MasterCard, American Express, and even Maestro if it is popular in your region. You will have to partner with a gateway that can process such payments. Ensure they are reputable and trustworthy and prioritize security and online safety.
In the last five years, cryptocurrency has moved towards mainstream adoption. This means that more and more people are starting to use cryptocurrency in their day-to-day lives. You can now be paid in cryptocurrency, pay utilities, do your online shopping, and even visit bitcoin ATMs. This is also echoed by the increasing demand for online gamblers to make deposits and even withdrawals in cryptocurrency.
A growing number of operators have started facilitating these payments as they recognize the need for secure, accountable, and immutable payments that give privacy to the consumer. Crypto payments also cater to those who do not want or have bank accounts and those who do not want to use their personal bank account or cards online. This opens up a whole new demographic to the world of online gambling.
The exact number of digital wallet users is hard to pinpoint, but it is estimated there will be 4.8 billion open wallets by the end of 2025. Digital wallets are fast becoming the preferred way to pay for many as they offer efficiency, security, and a streamlined way to pay. Popular digital wallets or eWallets include EcoCard, PayPal, Neteller, Google Wallet, Android Pay, Alipay, and Venmo, although there are many others including regional-specific options.
Digital wallets make it easy to combine multiple payment methods in one place, as well as loyalty cards and VIP cards. Allowing integration for digital wallet payment makes the deposit and withdrawal process smooth and simple for your gamblers.
A prepaid card is like a debit card where a monetary amount is stored on the card, not in another account maintained by a bank or financial institution. It means that withdrawals and deposits occur much quicker than with a regular bank card, and no network access is required. It is also anonymous as, like with cash, the person with the money holds the card.
All information is stored on the card in a “closed-loop” system. Prepaid cards are great options for those gambling online. There are many reasons why they are preferable, such as security, privacy, and convenience. Therefore, operators should be eager to provide these as a payment solution on their sites.
Bank transfers are one of the original methods of digital payments. While technology has advanced significantly over recent years, there is still a certain demographic that prefers to deposit and withdraw directly to their bank account. It is important for gambling operators to still cater to these people as they are still paying clients.
While you are unlikely to get much of the bulk of your business this way, you should still facilitate them. These kinds of payments go directly from the bank account to the bank account of the company via an IBAN and Swift code. Depending on the banks involved, they can be instant or take a couple of days. While they may be almost prehistoric compared to cryptocurrency payments, they are necessary for now.
Fast offshore has worked in online gambling since day one and has a quarter of a century of experience to bring you. We can help with incorporating, licensing, payments, compliance, structuring, and everything in between. Our team can also assist with all ongoing maintenance. With a promise of great customer service and full transparency, we are waiting to hear from you!