Before being able to deposit € 10 on the outsider 10/1 or place their roulette bets, players have a crucial step to take: their first deposit. Online casino and sports betting operators need to know the payments landscape inside and out in order to offer players in different regions the payment methods they need.
Credit cards such as Visa and Mastercard are widely accepted around the world, allowing users from all over the world to make payments with a card, phone, or even a watch. But in the iGaming industry, they are not a one-size-fits-all solution.
Online casino and sports betting operators who believe that supporting the payments of a few credit card giants means smooth navigation for their platform will find themselves in very rough waters. There are many markets where, due to regulation or lack of access to financial products, credit cards are not the first choice of players, if not an option at all.
Gambling is often classified as a high risk industry due to concerns about links to organized crime, money laundering, and terrorist financing. Credit card issuers use four-digit Merchant Category Codes (CMCs) to identify the industry to which the merchant belongs. The MCC for private gambling operations – separate from those run by the government – is 7995. If a credit card holder in an area where gambling is prohibited tries to access a gambling site, the card provider credit recognizes MCC code 7995 and blocks payment. .
Aside from jurisdictions where gambling is prohibited, players may be prevented from making deposits with their card by strict regulations, an uneven financial system, or the simple fact that they do not have a formal bank account. Fortunately, there are a range of other services that gamers can use, such as:
- Bank or electronic transfers
- Instant transfers
- Payment gateways
- Electronic wallets
To optimize their payment processing, online casino and sports betting operators should become familiar with the preferred payment methods in their operating markets.
The most popular payment methods in Europe are Visa and Mastercard, but different regions have their own local alternatives, especially in jurisdictions that prohibit the use of credit cards for gambling transactions.
In Germany, for example, regulations prohibit the use of credit cards for online gambling and betting. Instead, German players use Sofort, the leading payment provider in the German market. Sofort offers secure transactions with minimal steps and is also popular in Austria, Belgium and the Netherlands.
With almost 100% of its 67 million citizens using the internet, the UK is one of the largest e-commerce markets in Europe. And in part because of a cultural love for betting on football and other sports, the country has a huge gambling market. According to a 2021 report from the United Kingdom Gambling Commission, participation in gambling Online money in the country has reached almost 18% (excluding those who only play the national lottery).
Due to regulations introduced to tackle problem gambling, as of April 2020, the use of credit cards for gambling payments is banned in the country. British players commonly use their debit cards, services like PayPal or open banking, a rapidly developing financial technology that uses APIs and open source technology to increase security and transparency.
Interbank network Multibanco dominates the Portuguese payments space, with more than 12,700 ATMs nationwide from 27 banks participating in the network. Multibanco’s online payment service, MB Net, ensures security by generating a virtual credit card that keeps real card details secret from the seller. Other popular payment methods in the country include card payments, PayPal, and various payment systems, as well as open banking, direct debits, and wire transfers.
- Pay Pal
- Open bank
While credit cards are the go-to option in the UK and the rest of Europe, they are far from the most popular choice in Latin America.
According to a 2020 MasterCard report, only 55% of Latin American adults have a bank account and only 19% have a credit card. Internet users across the region prefer to make payments online by wire transfer. During payment, he is either redirected to his bank’s payment page, or chooses his bank from the list of providers or sellers of goods. In most cases, payment authorization occurs instantly.
Payment processors are doubly important in some Latin American countries as banks and other financial institutions have long been wary of the gaming industry and refuse to process transactions for sports betting and casinos.
The most popular local payment system in Brazil is Boleto Bancário, an official payment system regulated by the Central Bank of Brazil. The user can pay for the service through Boleto Bancário in cash at any bank branch or at an authorized supplier. Players can also make payments using any of the 48,000 ATMs across the country, through mobile banking or online. Similar systems are popular in other Latin American countries, such as Mexico.
- Bank transfers
- Boleto Bancário
Online gambling is booming in India, where 73% of people polled in a 2021 YouGov survey said they preferred to gamble online rather than in a physical casino.
Fortunately, Indian actors have an integrated national network of financial institutions to rely on. The National Payments Corporation of India (NPCI) provides the infrastructure for the country’s banking system. The Unified Payment Interface (UPI) integrates multiple bank accounts and features into a single mobile application; Bharat Interface for Money (BHIM) app uses UPI for quick and easy transactions.
The most popular payment method in India is PhonePe, an app that allows users to make fast and secure payments using BHIM UPI, credit cards, debit cards or e-wallets. Equally popular in India is PayTM, which claims around 25 million registered users. In addition to e-commerce, the service covers financial transactions using e-wallets and mobile payments.
Like the rest of the continent’s economic development, the iGaming markets in Africa are developing in their own way.
Formal bank accounts are rare in Africa, and credit cards even more so. Instead, African players are using mobile banking, a trend that is growing at a faster rate across the continent than the global average.
For example, M-pesa, a method of transferring money using a mobile phone, is widely used in Kenya, where 58% of the adult population has a mobile account. M-Pesa is also common in neighboring Tanzania, and in both countries the service is the preferred option for sports bettors.
Nigeria’s booming sports betting market is facilitated by the country’s multiple payment gateways.
The Lagos-based Interswitch payment processor connects a number of Nigerian banks. GTBank, one of Nigeria’s leading banks, created the GTPay payment gateway to enable seamless payments for debit cards issued by banks that participate in the Interswitch network.
Flutterwave’s RAVE is one of the fastest growing gateways in the country. The online payment solution makes collecting online payments for businesses and individuals simple, safe and secure for their customers.
Interac is easily one of the most popular payment systems in Canada. Interac was founded in 1984 and launched its electronic transfer service in 1996. The service’s long history has given it a long time to establish itself, and its nationwide coverage has led to nearly 60% of the nearly 40 million customers. locals to use the service. . PayPal, by comparison, has just over 6 million Canadian users. One of the most popular payment methods for online casinos nationwide is solution provider Gigadat, which uses the Interac system.
South East Asia
Asia is home to some of the world’s largest economies and the most coveted gaming markets.
Electronic wallets are the most common choice for online casino players and sports bettors in the region, followed by credit cards, debit cards and wire transfers. Founded in 2003, the 2C2P payment processor has grown into one of the largest payment systems in Asia, in part because it even accepts payments from customers without a credit card.
Thaiepay provides e-commerce payment solutions in Thailand, enabling operators to accept payments using Visa, MasterCard and American Express cards. PaysBuy, another leading processor in the country, makes it easy to process and accept payments online. In principle, PaysBuy is similar to PayPal; sellers can accept payment by Visa, MasterCard, or from local bank accounts on their websites. Cryptocurrency payments are also very common in Southeast Asia.
The blockchain revolution has been going on for a long time. Attracted by anonymity and decentralization, players increasingly expect to make payments using cryptocurrencies – in fact, some online casinos transact exclusively in crypto. More and more players expect to make payments in cryptocurrencies like Bitcoin and Litecoin.
Online casinos and sports betting must take into account both local regulations and the resources available to players when entering a new market. If your platform doesn’t support a player’s preferred method of making deposits and withdrawals, there’s nothing to stop them from ditching your platform for the one that meets their needs.
Slotegrator’s Moneygrator The solution integrates a range of different payment methods into your online casino or sportsbook, ensuring you can give players the betting experience they are looking for. Contact us to learn more about integrating Moneygrator into your platform today.