What can the gambling industry learn from cryptocurrency companies to raise the number of incoming payments and increase the conversion into deposits?
Read this article to the end if you want to:
- get more affordable ways to accept money from customers utilizing bank cards;
- raise the number of payments received from customers;
- increase the conversion from registrations into deposits;
- start working with clients from countries that are currently not available to you.
How are things going with accepting payments in the industry now?
The gambling industry is growing annually by 15%-20%, while the share of cryptocurrencies is at least 10% of all payments. For example, at one of the world's largest poker networks, up to 10% of payments are made in crypto, and they amount to millions of dollars.
Cryptocurrencies are a perfect form of payment for the gambling industry. You can even accept bets in Bitcoins and other tokens without having a license. Thanks to this, at present, there are a lot of new online casinos and bookmakers that do without fiat at all, operating only with cryptocurrencies. Thus, this helps them to stay out of sight of regulators. It's no secret that up to 40% of the online gambling industry still works in the gray zone.
At the same time, far from everyone finds cryptocurrencies clear and convenient. The vast majority wants to pay with credit cards. However, almost all the major payment providers are not ready to work with the representatives of the gambling industry. And if they manage to come to an agreement in terms of the payment processing, then there are problems with banks that issue customers’ cards. They simply block payments by merchant category MMC codes related to gambling. Here, small payment systems that simply change payment codes try to come to the rescue. As a result, the client, replenishing the balance at the casino, as if pays for the services of a gardener or cosmetic procedures. This discrepancy confuses many customers and they themselves interrupt the payment process. We will not further list all the adventures that money face on the way to your bank accounts. Let's move on to how to overcome these obstacles.
How to solve problems with accepting payments?
In this case, one of the best solutions is crypto-fiat processing services working on the basis of licensed exchange services. It sounds complicated, in fact, everything is much simpler. Such services are licensed to exchange cryptocurrencies, so they accept fiat money from customers legally, as well as negotiate with banks and processors easily.
As a result, the clients purchase cryptocurrency from their bank cards in their national currencies and automatically transfer them to the wallet of the gaming operator. And they, at their discretion, either use cryptocurrencies to make payments, or they immediately sell them and receive fiat money to their bank accounts. When the user wants to withdraw the winnings, the operator again buys cryptocurrency, transfers it to the user's virtual account, and the latter receives money on a bank card. All exchange operations and cryptocurrency transactions occur automatically and are invisible to the client. As a result, the operation of deposit or withdrawing funds takes just a few minutes and practically does not fail.
In the case of professional high-level crypto-fiat processing, almost one hundred per cent of all payments are processed successfully. If the processing company has a European license for the exchange of cryptocurrencies, based on this scheme, it can accept funds from players even from Germany and Norway, where, since January 1, 2020, payments are blocked not only in favor of unlicensed casinos but also in favor of those working under offshore licenses provided by Malta, Curacao, and other jurisdictions.
One of the most notable players in this market is utorg.pro. The company is considered a kind of benchmark in the industry and its example might help to explain easily how everything works.
This company operates under an Estonian license, which is a perfect option for working with clients from the European Union and other developed countries. Utorg works with several dozen national currencies, including Australian and Canadian dollars. However, there are crypto and fiat processing that focus only on specific regions.
How does it look like to the end-user?
Directly on the operator’s website, the client chooses the option to deposit with a Visa or MasterCard bank card through the purchase of virtual currency. The users need to enter the payment information, ticks off that they agree to transfer the virtual currency to the balance of a particular operator, pass the verification process, and the funds are automatically credited to their balances.
For different providers, this procedure can take from 3 to 15 minutes. In the case of Utorg, this process takes 4.7 minutes for initial use and 1.5 minutes for repeated use, according to the data from the company’s website. Moreover, if a client has previously passed verification on the site of a gambling provider, there is no need in repeating it, the processing will simply accept user data from the operator via API. And for amounts up to 300 euros, KYC is not required at all.
What other benefits does working with crypto and fiat processing give?
Gambling operators often encounter situations when an unsuccessful player unreasonably wants to return the money that he or she had previously deposited to the balance of the casino. Usually, there are already no funds in his or her account by that time. Nevertheless, the user turns to the bank and demands a refund. In such cases, financial companies most often take the side of their client, trying to solve the controversial situation in the customers’ favor. In the case of crypto and fiat processing, there is no use in doing this. The user's transaction is reflected in the blockchain and there is no problem in proving that the client voluntarily completed the cryptocurrency purchase operation and this digital asset was really transferred to the wallet indicated by the customer. Everything is absolutely legal and there is no need in disputing such an operation.
In addition, large providers, such as the already mentioned utorg.pro, deal effectively with all kinds of fraudulent transactions.
How to connect crypto and fiat processing to your website?
Onboarding at such processing usually takes place much easier and faster than in the case of traditional payment systems. The number of necessary documents is significantly smaller. No license is required as well. Thus, you do not have to spend extra time.
From a technical point of view, the integration process is very different. In some cases, connecting a crypto and fiat payment provider may require special knowledge from the operator’s technical team. Sometimes, it is not possible to fully automate the process of exchanging and receiving funds, and part of the operations have to be carried out manually.
In the case of utorg.pro, everything turned out to be very simple, and take less then 24 hours.
For assistance in preparing the material, we thank the utorg.pro team.
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