As iGaming payment methods and solutions expand, it can be challenging to know which options provide the best user experience with optimal operational efficiency.
This article examines the current and future considerations for industry professionals and presents the top 10 payment methods and eWallets worthy of inclusion in your payment strategy in 2024.
Understanding Payment Gateways and Methods
The terms "payment methods" and "payment gateways" are often considered the same thing among iGaming professionals and players. However, the two terms refer to different aspects of the transaction process. The payment method is what the customer uses to make a payment, whereas the payment gateway is the system that securely processes those payments from various payment methods.
In simple terms, imagine the payment method as the type of mail you're sending out. It could be a standard letter, a postcard, or a parcel. The payment gateway acts like the post office, processing and ensuring that whatever form your mail takes, it reaches its destination safely and efficiently.
Here’s how they differ:
Payment Methods
Payment methods include the various ways a customer can send funds to an iGaming platform (merchant). These can include traditional and digital means such as credit cards, debit cards, bank (wire) transfers, prepaid credit cards, pay by cash, pay by phone, SMS payments, checks, e-wallets, and cryptocurrencies.
Payment Gateways
A payment gateway acts as the middleman between the player (customer), an iGaming platform (merchant) and its sponsoring bank, overseeing the technical process of authorising or declining transactions based on the information received from various payment methods.
eWallets vs Gateways
Similar to payment gateways, eWallets are also capable of processing various payment methods, which raises the question: Are they the same thing?
In short, while they are related, they serve different roles. Payment gateways are primary tools for merchants, providing the means to process and authorise transactions in real-time. EWallets, on the other hand, are tools offering features to manage personal (and business) funds by storing, sending, receiving and making payments.
Both systems prioritise security, but where eWallets protect user accounts from unauthorised access and risk management, payment gateways focus on the secure transmission of data during transactions to prevent interception and fraud.
Operator Considerations in the Selection of Payment Solutions
For online iGaming operators, the importance of selecting the right payment solutions should not be taken lightly. The choice of payment methods and eWallets made available to players should primarily align with a platform’s geographical focus. This means providing a diverse and balanced mix of options to cater to all needs while accommodating local preferences. Choices need to meet the compliance demands of each market as well as the overall strategic objectives of the online gambling platform.
A carefully considered range of payment processing solutions ensures fast and trouble-free customer transactions, which helps to foster customer satisfaction and trust. In a broader sense, it will streamline operational efficiency and contribute to the platform's long-term success.
Here are the most important issues to consider when selecting payment methods within an iGaming platform:
Ease of Integration. Selecting payment methods that are easy to integrate ensures minimal disruption during deployment. Moreover, it reduces development time and cost, enabling operators to quickly adapt to market changes and regulatory requirements, therefore maintaining competitive agility in the iGaming arena.
Security Provision. Security considerations are a top priority. Robust security not only protects platforms against financial data breaches but also helps to comply with stringent global regulatory requirements. Systems with advanced encryption that adhere to international security standards protect a brand's reputation and install trust among users.
Transaction Speed. Another essential requirement for iGaming platforms is selecting payment methods that offer rapid transaction speeds. Ideally, transactions should be processed within seconds to enhance user satisfaction. Providing instant feedback and gratification is a must in a fast-paced betting environment. Such efficiency not only improves the overall user experience but also boosts player acquisition and retention, as players trust that their deposits and winnings will be managed swiftly and professionally.
Support for Multiple Currencies and Geo’s. For gambling platforms aiming to compete globally, selecting payment solutions with multi-currency support and localisation capabilities is a must. These features ensure that players across different regions can transact in their local currencies, which improves convenience and reduces exchange rate complexities for customers. For operators, it significantly boosts player reach and satisfaction.
Costs and Fees. Selecting iGaming payment options with an optimal fee structure is critical for maintaining a healthy balance between service quality and cost efficiency. Typically, these fees include transaction charges, monthly account fees and, sometimes, set-up costs. High transaction fees can erode margins, particularly on smaller bets, impacting overall profitability. Conversely, competitive fee structures can enhance a platform's attractiveness, providing a better value proposition to users while driving higher transaction volumes.
Customer Support. Fast and effective support ensures that any transactional issues are swiftly addressed, thereby minimising downtime and maintaining user trust. This responsiveness not only enhances the user experience but also stabilises the platform's operation, preventing potential revenue losses and preserving the platform's reputation and operational efficiency.
Top 10 Payment Methods and eWallets for Sports Betting Platforms in 2024
Here is our list of the top 10 payment methods and eWallets used by iGaming platforms in 2024. They have been ranked according to their popularity, multi-currencies and geo support, cost efficiency, customer support quality, and their technical suitability for gambling transactions.
1. PayPal (eWallet)
For iGaming operators, integrating PayPal is a top option. It's a globally recognised digital payment gateway that can significantly enhance your platform's accessibility and trustworthiness. PayPal functions by linking user’s PayPal accounts to their personal banking accounts or credit cards, facilitating swift and secure transactions.
This system is especially advantageous for online gambling platforms due to its rigorous security measures, broad geographical reach, and widespread consumer acceptance. Offering PayPal not only attracts a wider audience but also reassures players of their financial safety, potentially increasing user retention and trust. Moreover, its efficient dispute-resolution mechanisms provide an added layer of consumer protection, further enhancing its appeal.
2. Skrill (eWallet)
Integrating Skrill as a payment method on your iGaming platform offers several distinct advantages. This digital wallet provider facilitates secure, fast and low-cost transactions directly from bank accounts, credit cards, or Skrill funds. It is highly regarded for its user-centric privacy approach, which does not require disclosure of financial details during transactions, enhancing overall security.
Predominantly popular in the online gambling community, Skrill supports instant deposits and withdrawals, which not only attracts savvy players but also encourages loyalty through the provision of a smooth transaction experience.
3. Neteller (eWallet)
Like Skrill, Neteller operates as a digital wallet enabling users to deposit, withdraw and transfer iGaming funds with ease. It is highly regarded within the online gambling community for its high transaction limits and swift processing, surpassing competitors like Skrill in these areas. This feature benefits high rollers and frequent bettors who demand higher transaction thresholds.
Furthermore, Neteller's reward program, which offers points for transactions that can be exchanged for cash or other perks, provides a unique incentive that enhances player loyalty and satisfaction. Such advantages make Neteller an appealing choice for iGaming operators looking to attract a loyal and dedicated user base.
4. Debit and Credit Cards
For iGaming operators, offering debit and credit card options - including Visa, Mastercard and American Express - on iGaming platforms is a must. These payment methods are universally recognised and trusted, providing instant deposit capabilities. For players, the familiarity and ease of use associated with these cards contribute to their appeal, although they may face limitations such as varying transaction limits and potential withdrawal delays.
Some gambling jurisdictions, notably the UK, have banned the use of credit cards in remote gambling platforms. Nonetheless, for operators, accepting major cards increases accessibility, attracting a broader customer base.
5. Apple Pay (Contactless Payments)
The Apple Pay digital wallet supports secure contactless payments directly from devices, enhancing user convenience and acceptance. Its use of device-specific numbers and unique transaction codes ensures financial data security, although it is limited to users of Apple devices, which may restrict access to a wider audience.
For platform operators, the inclusion of Apple Pay attracts tech-savvy players, promoting a modern and efficient transaction environment. Ultimately, this can lead to increased engagement and trust, as players appreciate the ease of use and additional security layer that minimises the risk of fraud and unauthorised transactions.
6. Trustly (Bank Transfer)
Trustly stands out as a top payment solution for iGaming operators due to its direct bank e-payments system. This system allows players to make transactions directly from their online banking accounts without the need for a card or app. This gateway not only simplifies the deposit and withdrawal process but also supports immediate bank transfers.
For operators, Trustly's model minimises fraud risk and does not require the handling of sensitive personal or financial data, significantly reducing the potential for data breaches.
In addition, Trustly's broad acceptance across numerous European banks ensures accessibility to a wide customer base, making it an advantageous option for platforms looking to expand their reach across multiple European markets. With that being said, its primary focus is in Europe and may restrict access for players outside this region.
7. Cryptocurrencies (Digital Currency)
Cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, offer an appealing payment solution for iGaming platforms. They facilitate rapid, decentralised transactions that bypass traditional banking infrastructures, reducing processing times and fees. As the pioneering and most widely recognised cryptocurrency, Bitcoin attracts a broad user base which enhances market penetration.
Cryptocurrencies ensure anonymity and security, appealing to players concerned with privacy. However, the volatility of their value can be a limitation, introducing a risk element in transaction value. For operators, the integration of cryptocurrencies not only deepens accessibility but also positions them at the forefront of technological adoption, appealing to a tech-savvy audience while potentially reducing fraudulent activities.
8. Paysafecard (Pre-paid)
Paysafecard is a prepaid payment method that allows users to make payments online without the need for a bank account or credit card, simply by using a 16-digit PIN purchased at retail outlets. For players, the benefit lies in controlled spending, as they can only wager the amount preloaded on their card, providing the additional benefit of promoting responsible gambling.
From an operator's perspective, Paysafecard widens the customer base by accommodating those wary of sharing financial details online or those without traditional banking facilities. The method's widespread availability across numerous countries and ease of use contribute to higher transaction success rates and customer satisfaction. However, one limitation is the inability to withdraw winnings to the Paysafecard, necessitating an alternative withdrawal method, which could be a drawback for some players.
9. PayNearMe (cash)
PayNearMe is a payment service that allows players to make deposits into their iGaming accounts using cash at participating retail locations, such as convenience stores and pharmacies. This service provides an option for players without bank accounts or those who prefer not to use digital banking solutions.
Benefits include enhanced privacy and security since no online banking information is needed. However, it is restricted by the inability to withdraw winnings via the same method. For operators, offering PayNearMe can significantly expand their customer base by appealing to a demographic that prefers or requires cash transactions. Additionally, it can decrease the risk of chargebacks and fraud, thus stabilising operational integrity.
10. Boku (Mobile Phone Bill)
While not among the elite in terms of user adoption, its flexibility for taking mobile phone payments merits inclusion on this top 10 list. Boku is a mobile payment method that allows players to deposit funds into their iGaming accounts directly from their mobile phone bill. This method is ideal for those seeking quick and straightforward transactions without the need for credit card details or bank accounts.
The primary benefits for players are convenience and security since Boku does not require any financial data to be entered online. However, limitations include low transaction limits and no option to withdraw winnings, which might deter high rollers. For operators, Boku can dramatically increase engagement among mobile users and those wary of traditional online payment security risks.
Challenges and Future Outlook
A complex landscape of regulatory changes, technological advancements, and market expansion challenges will likely dominate the future of payment processing in iGaming. As jurisdictions worldwide tighten regulations, iGaming operators must navigate an increasingly fragmented legal environment. This necessitates rigorous measures to comply with the various anti-money laundering directives and consumer protection laws, which impact payment processing strategies.
Artificial Intelligence (AI) is also dramatically impacting payment gateways, by enabling more sophisticated risk management and fraud detection algorithms to streamline the transaction processes. As always, entering new geographic markets presents fresh challenges for iGaming operators in 2024. Each market has unique payment preferences and legal restrictions in place, requiring operators to localise payment solutions effectively. For instance, while cryptocurrencies may be popular in one region, areas with tighter digital currency regulations demand alternative approaches.
Successfully managing these factors requires iGaming platforms to be flexible, while ensuring a secure and user-friendly payment experience for global customers.
Get in touch with our team
Distinguished iGaming software provider Altenar provides white-label sportsbook solutions that radically reduce the time and cost of setting up your own gambling platform. All payment processing, licensing and player management needs can be met, leaving you free to focus on marketing and customer acquisition.
Contact our expert team today: [email protected] for more info on white-label sportsbook solutions.
