Payment Trends And The Future Of The iGaming Niche
One of the important tasks of iGaming providers is to make it more convenient for players to interact with their products. Over time, credit cards are being replaced by virtual cards, and the latter are gradually replacing blockchain and crypto payments. It is worth emphasizing what payment solutions are present in the world of iGaming today, having considered all their features and prospects.
We found in the AffCommunity blog an article What are the most popular payment methods in iGaming?
Payment Solutions
As mentioned above, player convenience comes first for betting platforms and casino operators. For this reason, from time to time, new payment options with a high rate of convenience and simplicity appear. Their list includes:
- Mobile payment systems. Among them are Google Pay and Apple Pay. The optimal solution for paying for apps and mobile games. These cards are tied up once. In the future, payments are already made automatically;
- Credit and debit cards. One of the most common methods of payment, which remains relevant to our days. Payment by card is quite simple. They are especially popular in Turkey, Japan, Canada, UK, USA and India;
- Electronic wallets. One of their significant advantages is anonymity, which classic bank cards cannot boast. E-wallets are also convenient because several currencies can be linked to them at once without creating additional accounts;
- Direct debit. In this case, iGaming providers can debit funds from the bank account automatically, avoiding manual crediting to the deposit;
- Bank transfers. Not too popular method, but characterized by high security. In demand among players who do not trust intermediaries;
- “Buy now, pay later”. Such services give the opportunity to pay for services and goods in installments. As a result, payment is made with a minimum first installment;
- Cryptocurrencies and blockchain. An advanced payment method that has managed to establish itself with a positive side in the world of iGaming, about which in detail below.
Crypto Trends in iGaming
Cryptocurrencies are characterized by convenience, security and decentralization. All in all, they completely shut down a lot of issues concerning the iGaming industry. If you look at the statistics, you will notice the high popularity of the technology in this vertical.
The volume of betting in crypto has increased in a year from 2021, as reported by Softwiss. The platform notes an increase from $3 billion to $6 billion. In other words, this is a record growth of 116%.
An overwhelming number of players prefer to use cryptocurrencies. Their list is topped by the not-so-famous bitcoin.
Kaminari says in its report that almost 80% of players make deposits from 10 to 50 dollars. Approximately 0.03% make deposits of more than $1,000.
Taking into account that cryptocurrencies are now in high and growing demand almost everywhere, from affiliate marketing to iGaming, there is a growing need for fast payments with low fees. For example, an online Bitcoin transfer of $50 takes half an hour and includes a $10 fee.
It is more expedient to make bitcoin transfers with Lightning Network, which is a thorough game changer. Crediting and withdrawal of funds occurs almost every second. At the same time, the commission is limited to 1 dollar.
Lightning Network
This is a protocol based on the BTC blockchain. Transactions are performed in a couple of seconds, which is faster than payments in MasterCard and Visa. The fee is 4 cents. The throughput of LN-channels at the end of spring 2022 amounted to 3900 bitcoins.
The peculiarity of LN work is in the simplification of transfers between wallet owners, which is expressed in the absence of recording in the blockchain. For this purpose, a special payment channel is created, which is periodically replenished.
Thanks to the latter, transactions are performed between users outside the blockchain. Information about transfers is available only to its participants. The blockchain reflects only the starting and ending value of the transaction. All this together makes Lightning Network a promising breakthrough in the field of online payments, characterized by anonymity and flexibility.
In lieu of a conclusion
The crypto-industry is constantly improving, and the iGaming sphere adapts to them in a timely and qualitative manner. Does something new run in the near future? Will cryptocurrencies run the same demand as classic cards? These questions will only be answered in the future, but for now you should use Lightning Network.