Transaction Trends - Contemporary Payment Methods in Online Casinos
The online casino business continues to grow year on year, with the industry worth more than $60 billion worldwide. Technological trends and breakthroughs are key drivers behind the flourishing industry, with players using powerful yet affordable smartphones to access ever-more advanced games via dedicated apps. But technology also benefits another major factor in online gambling — payment methods.
With increased levels of encryption and the emergence of new methods and currencies that allow fast transactions, heightened security, and anonymity, these contemporary payment methods are shaping the way we interact with online casinos, and the wider world of online entertainment, shopping, banking, and more. Let’s take a closer look.
Card Payments
Using plastic seems antiquated now, but debit and credit cards are still among the most popular payment methods for online casino users. Almost all online casino operators use SSL-encrypted technology (look for a certificate before you sign up to any online casino), and this creates an encrypted environment for all financial and data transactions to take place, so cards are still a secure and reliable way to pay and receive payouts.
However, while they are trusted and reliable, using debit and credit cards doesn’t provide the fast transactions that many have come to expect from their online payment options.
Cryptocurrencies
One of the most significant developments in online casino transactions is the increasing acceptance of cryptocurrencies — a curiosity surrounded by scepticism when they first appeared in the wake of the 2008 financial crisis, now Bitcoin, Ethereum, and Litecoin are legitimate payment options. As well as these, emerging currencies are also becoming more widely accepted in online casinos.
Cryptocurrencies offer players enhanced privacy, faster transaction speeds, and reduced fees compared to traditional banking methods. The decentralised nature of these currencies also adds an extra layer of security, appealing to those who prioritise anonymity in their online transactions.
Open Banking
Open banking is a new financial concept and practice that involves the use of open application programming interfaces (APIs) to enable third-party developers to build applications and services around financial institutions. The primary goal of open banking is to enhance transparency, competition, and innovation in the financial industry by allowing authorised access to customer financial data and services — this reduces the cost to the user by removing intermediaries such as PayPal and Neteller.
iGaming experts like Trisita Aich are taking a deep dive look at new open banking solutions such as NodaPay, and it won’t be long before we see many online casinos adopt this fast-growing technology as a standard and reliable payment method.
“The goal of creating NodaPay was to enable companies to retain more of their earnings. By eliminating the need for middlemen, NodaPay allows businesses to save as much as two percent on each payment transaction made through the bank.” - Trisita Aich.
E-Wallets
PayPal emerged in the early 00s, offering an innovative online payment solution which was quickly adopted as the general public began to spend more of their money online. E-Wallets continue to be a preferred choice for many online casino enthusiasts, and alongside PayPal, services like Neteller, and Skrill offer a streamlined and secure payment process. The convenience of linking a bank account or credit card to an e-wallet account allows players to deposit and withdraw funds with just a few clicks.
E-wallets are pretty secure as well — by keeping players' financial information confidential from online casinos and other online vendors, customers can make payments and withdrawals with peace of mind, which is key to enjoying the iGaming experience. The instant transfer of funds and the ability to manage transactions in real time contribute to the popularity of e-wallets among players seeking efficiency and speed.
Contactless and Mobile Payments
The rise of mobile gaming has led to an increased demand for mobile payment solutions. Contactless payment methods, such as Apple Pay and Google Pay, are becoming prevalent in the online casino space, and players can now make deposits using their smartphones, adding to the convenience that helps drive the popularity of iGaming.
Most modern smartphones and tablets now have biometric identification features, such as fingerprint or facial recognition, and these enhance the security of mobile payments. This trend aligns with the broader shift towards a more seamless and user-friendly transaction process, reflecting the desire for instant gratification in the digital age, and the fast payments and withdrawals digital consumers have come to expect.
Bank Transfers
It may seem a decidedly old-school way to deposit money into your online casino account, but nonetheless, bank transfers are still a popular option widely offered by most operators. It’s reliable, helps keep track of spending, and takes away some of the temptation to add more funds based on emotional or impulsive decisions. Having to navigate to your banking app and authorise a transfer gives a player time to consider how much to deposit.
Obviously bank transfers pale in comparison to other payment methods when it comes to transaction speeds, although usually funds will be transferred within 20 minutes or so, depending on the bank.
Payment methods are shaping every aspect of our online experience as consumers. And fast-paced, ever-evolving industries such as online casinos require fast-paced, evolving financial solutions to keep pace.
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