Digital payments have played a huge role in propelling the iGaming industry to the stage where it is today. They made the hobby more accessible and more appealing. Additionally, they helped operators localize their gambling sites for specific markets. Players are more likely to trust a site if it allows them to make deposits and withdrawals via local payment solutions. Take the Czech Republic for example, where many who transact online use NeterPay. As a result, any NeteraPay casino is automatically more appealing and trustworthy, to the gambling enthusiast there. It shows that the company has made an effort to enable a payment solution that people trust.
Clearly, a lot has changed in the past two decades. So, let’s see how online casino payment solutions have evolved and discuss how they will continue to improve.
Early Days of Online Gambling
Many countries that legalized online gambling had to tread lightly across this new landscape. During the early days, operators had to have brick-and-mortar establishments in order to conduct business online. This is still the case in many countries where the hobby is legal. The sites didn’t even have payment gateways, users had to go to physical gambling establishments and top up their accounts.
Soon after operators added payment gateways that allowed users to add funds via credit and debit cards, and they could also use wire transfers. Although this was more convenient many were still reluctant to embrace these new solutions. Leaving sensitive payment information on a website didn’t feel like a prudent thing to do. Luckily, this has changed with the introduction of digital wallets.
It didn’t take long before online gambling sites started to accept digital wallets or payment methods that were widely used for internet shopping:
This was a big game changer especially since many users did have PayPal accounts. One of the reasons why PayPal was so popular is because it teamed up with eBay which is one of the top e-commerce sites. This helped PayPal establish its presence as a dominant fintech company, and it soon became the most widely used payment solution. Since people rarely maintained big balances on their PayPal accounts, they were more comfortable with adding this payment method.
Another reason the online casino industry boomed is thanks to smartphones. It was easy for anyone to go online or play via an app. Furthermore, players could use GooglePay and ApplePay for deposits and withdrawals. This meant, that payments were more streamlined and secure. Those who use Apple Pay don’t have to share their payment information with the operators. The whole transaction is encrypted and it happens between Apple and the casino.
Of course, having a digital or e-wallet isn’t an option for everyone. After all, you will need a bank account or a source of revenue to add funds to that wallet. Luckily, there are ways to make a deposit nowadays even without these apps. All you need is a cellphone and an operator that accepts SMS payments. You can find a list of online casinos that accept SMS deposits on this link - https://playsafecz.com/zpusoby-vkladu-v-casino/sms-vklad-casino/ and play without a bank account or digital wallet
Many gambling operators managed to expand their user base by embracing crypto or blockchain payments. This has brought about a number of advantages for players. It is one of the fastest and safest ways to move money between digital wallets, and it eliminates all of the pain points of cross-border payments. This meant that many casino fans could easily play on foreign sites as if they are operating locally.
Blockchain technology also added another level of privacy. Now there was no need for casinos to gather KYC documents, which eliminates the need to sign up and verify the account. In other words, crypto casinos allow for anonymous play. Anyone can have a play session via a dedicated URL, make a deposit via a crypto wallet, and withdraw the funds afterwards. What’s more, cryptocurrencies have gained more utility which helped them increase in value. As a result, crypto enthusiasts often support gambling sites that enable these payment methods.
Future of Payment Solutions
Even though the fintech industry is evolving, a lot of regions are still underbanked. Meaning they don’t have access to modern payment solutions. So, most of what’s available today will slowly make its way to other parts of the world. This means there will be fewer and fewer people who are relying on SMS payments. Additionally, some payment methods like eChecks are only used by the older gambling community. So, it’s possible these will be phased out in the coming decades.
The world is gravitating towards digital currencies now, which also indicates that cash will be completely replaced. As centralized digital currencies are easier to regulate it wouldn’t be surprising for more people to jump onto the crypto wagon. They value their privacy and don’t like the idea of every transaction being recorded.