The iGaming industry is one of the fastest-growing and most technologically advanced areas of online business. However, behind the bright user interface and exciting gameplay, there is an equally important aspect — the proper setup of the payment infrastructure. Processing payments in online gambling requires a special approach because it is not only about the speed and reliability of transactions but also about compliance with many legal and regulatory requirements in different jurisdictions. This is why iGaming payment processing is becoming a separate area in the world of fintech, where adaptive solutions, security, and multi-level protection from fraud play a key role. In this article, we will figure out what nuances need to be taken into account when setting up a payment system for an iGaming platform.
iGaming Services: Industry Features
Despite the rapid development of the sector, iGaming platform owners face serious difficulties in processing payments. The reputation of a high-risk sector, strict financial regulations, and increased fees from traditional payment systems create many barriers for operators.
iGaming or interactive gaming covers gambling in a digital format. Platforms operating in this area offer users the opportunity to participate in various types of games, from virtual casinos to eSports betting. Unlike offline gambling, online games are convenient, accessible from anywhere in the world, and give users a wider choice of entertainment.
The key difference of the iGaming business is its high financial activity. It is important for platforms to quickly and safely process hundreds and thousands of transactions per day. This requires reliable payment systems that can adapt to user requests, providing different payment methods.
However, the iGaming industry belongs to the category of high-risk businesses. This status is associated with several factors. Firstly, the high probability of fraudulent transactions and chargebacks makes payment processing difficult. Secondly, laws in different countries often restrict the work of platforms. For example, gambling is prohibited in a number of countries, which forces owners to look for workarounds for accepting payments.
In addition, high competition in the industry forces companies to offer players bonuses, instant payouts, and flexibility in replenishing their balance, which further complicates interaction with traditional financial systems.
Difficulties in Accepting Payments in iGaming
iGaming operators face numerous barriers when working with traditional payment systems. Banks and aggregators, seeking to minimize risks, often refuse to service such companies. Even in cases where cooperation is possible, strict conditions accompany it. For example, a platform may face sudden blocking of an account without explanation.
Even large iGaming companies have to pay increased fees for acquiring. In addition, there are restrictions on the number of certain types of transactions, such as international transfers, which is especially painful for platforms with a global audience.
The strictness of regulators, such as European and American financial authorities, aggravates the situation. The introduction of anti-money laundering (AML) rules and mandatory customer identity verification (KYC) complicate the process of processing payments. As a result, many platform owners are forced to look for more flexible and convenient ways to accept funds.
Payment Methods For iGaming Services
iGaming business owners have three main payment methods available:
Internet acquiring
Internet acquiring includes bank acquiring, payment systems, and aggregators that provide payment acceptance via cards and other instruments. Some services are ready to work with high-risk projects, including iGaming, but the probability of refusal remains high.
Main difficulties:
- Strict requirements. To connect, you need an extensive package of documents and compliance with the law, as well as the terms of the service.
- High fees. Due to reputational and fraudulent risks, as well as potential frequent chargebacks, services set higher fees.
- Risks of sudden refusal. Banks or aggregators can block an account without explanation, especially in the case of suspicious transactions.
Despite this, Internet acquiring remains one of the legal methods of accepting payments, suitable for large iGaming platforms ready for complex connection procedures and high costs.
P2P processing
One of the alternative methods of processing transactions for iGaming services has become P2P processing. This method allows you to bypass traditional restrictions associated with strict requirements of banks and payment systems.
The essence of P2P processing is simple: when paying for an order, the user selects a payment method via a bank card, but instead of standard acquiring, he is given an individual’s card number for the transfer. After completing the payment, the system records the transaction, and the client gets access to his order.
However, systems offering integration of this method of accepting payments charge high fees (from 10%), and the process of receiving payment by this method is accompanied by additional risks.
Crypto acquiring
Crypto processing is an innovative way of accepting payments, ideal for international and high-risk businesses, including iGaming. Such systems do not single out high-risk companies as a separate category, cooperating with them on standard terms.
The advantages of crypto acquiring include:
- International coverage. Cryptocurrency transactions cannot be limited, which allows working with a foreign audience, despite possible restrictions.
- Low fees. Cryptocurrency payment system fees average 1–2%.
- Security and privacy. Blockchain technology ensures high transaction security, and user data remains anonymous.
- No blocking. Crypto payments do not depend on banks and financial regulators, which eliminates the risk of sudden denial of service or cancellation of transactions.
Wrapping It Up
Efficient payment processing setup is one of the fundamental elements of iGaming business success. The payment system must not only comply with legal requirements and ensure data security but also support multiple payment methods, given the global audience. In this context, iGaming payments processing requires deep expertise and cooperation with reliable providers capable of offering flexible and scalable solutions, such as Tranzzo. The company has been in the online payment market since 2017, offering more than 3,000 customers effective, secure solutions.