Why your online gambling platform needs crypto payments
Cryptocurrency and online gambling go hand in hand. Both are online, digitized and increasing in popularity every day. The cryptocurrency industry is valued at over $1.2 billion and online gambling sits at over $60 billion. With crypto enjoying widespread mainstream adoption and online gambling attracting new demographics, the synergy is clear.
In cryptocurrency gambling, players make deposits in cryptocurrency. They can also bet in cryptocurrency and withdraw their winnings in the coin of their choice. As more and more people are preferring to use cryptocurrency online, online gambling providers must take notice of it. Another point worth noticing is the popularity of crypto with the younger generation (over 18). This demographic is becoming more interested in online casino games, therefore it makes sense to provide them with the means to pay in the way they feel most comfortable.
How crypto payments work
Offering cryptocurrency payments doesn’t have to be complicated for you or your client. While the technology behind it may be a little complex, the front end of the payment isn’t.
There are two main differences between cryptocurrency payment processing and fiat payment processing. First, when using crypto, the customer pays via a digital wallet instead of a credit or debit card. Second, they pay using a fraction of a coin such as bitcoin, ether, or litecoin.
The customer will have a certain amount of cryptocurrency stored securely in their digital wallet. This is usually in the form of an application or a form of software and can contain one currency or multiple different ones. When the client agrees to pay in cryptocurrency, the value of that coin is locked in at the time of the payment. Upon commencing the transaction, the digital wallet sends the designated amount via the payment processor. This is then forwarded on to you, the merchant, and deposited into your digital wallet. Once you have received the funds, you can keep it as a cryptocurrency or exchange it for fiat currency whenever you wish.
Benefits of using cryptocurrency
There are many benefits to using cryptocurrency payments on your online gambling site. In this article, we will address just a few of them.
A growing number of people are using cryptocurrency while conducting online transactions. By offering cryptocurrency payments on your site, you are providing a convenient payment option to your customers. The more payment options your offer, the more potential clients can access your services.
Cryptocurrency transactions can be executed and completed in a matter of seconds. These payments can be quicker than traditional deposit methods that can take hours, or sometimes even days, depending on the method selected. Increased speed means increased spending.
Processing costs for cryptocurrency payments are significantly less than with conventional payment processors. Typically, processors charge a small fraction of a coin for a transaction, which is often much less than fiat processors.
When you work with card processors, you always have to be mindful of factors such as your chargeback ratio. Should it go too high, you could find your account closed or higher fees imposed on you. With crypto transactions, this won’t be an issue.
Cryptocurrency payments are more secure for both the merchant and the customer. Because crypto transactions are executed on the blockchain, they are immutable and cannot be altered or deleted. Furthermore, your customer’s data won’t be stolen or compromised.
Cryptocurrency wallets and transactions are anonymous. These transactions won’t show up on bank statements. Of course, as an online gambling provider, you are required to ascertain players’ identities at the onboarding stage, but the transactions are assigned to them via a number and are then encrypted. Therefore, the payments themselves are not publicly linked to a name.
Integrating cryptocurrency payments in your platform gives you a competitive edge and boosts your image. It positions you as a forward-thinking and tech-savvy operator that has their finger on the pulse of the latest developments. As the market is attracting players in the age 21-35 category, this is a huge benefit.
Which cryptocurrency should you offer?
Which cryptocurrencies you should offer will depend on a few different factors. There are some gambling-specific currencies out there such as $FUN, WINkWIN, Dragon Coin, and Bitbook Gambling to name but a few. Most likely, you will want to offer cryptocurrency payments in Bitcoin and perhaps a handful of other popular currencies.
Bitcoin is by far, the most well-known and widely used cryptocurrency and should be available as a payment method on your platform. If you are considering offering other currencies, remember to look at Ether, Tron, Litecoin, and Ripple. Of course, you don’t have to offer all, but a wider variety will increase the size of your customer net.
At this stage, you have two options; to onboard multiple single currency processors, or to work with a multi-currency processor. There are lots of options on the market, each with different benefits, terms and conditions. Fast Offshore can provide you with insight into which one will suit your business needs, location, and gambling license.
There is the option of offering payments directly, wallet-to-wallet without a processor, but it’s not recommended for online gambling platforms. Due to the high number of transactions and the work required to keep track of payments, it is more sustainable to cooperate with a third-party cryptocurrency processor.