How to Overcome the Payment Challenges in the iGaming Industry?
The iGaming industry has seen exponential growth in recent years. It offers players a wide array of options for online gambling, sports betting, and games. Within this growth, there has been a shift in how users play. It is forecasted that by 2026 over 60% of iGaming will happen on Mobile devices. For merchants and users, navigating the complex landscape of payment methods and challenges can be daunting and oftentimes frustrating. Could carrier billing the solution to these troubles?
Before delving into the advantages of carrier billing, it’s important to understand the key challenges associated with iGaming payments and why many providers struggle to find an optimal payment set up.
The Challenges of iGaming Payments:
- Regulatory Hurdles: iGaming is subject to varying degrees of regulation in different regions. Some countries have stringent rules that make it difficult for players to deposit funds or receive payouts from iGaming platforms.
- Payment Blockages: Traditional payment methods like credit cards can be prone to blockages due to issuer policies or security concerns, resulting in declined transactions and frustrated players.
- Privacy Concerns: Many players value their privacy and are concerned about sharing sensitive financial information online. This reluctance can hinder their participation in iGaming activities.
- Complex Payment Funnel: The multi-step process of selecting, authorizing, processing, and completing payments can be confusing for users, leading to drop-offs and abandoned transactions.
Carrier Billing: A Solution to iGaming Payment Challenges
How does carrier billing provide an effective solution to overcome the challenges faced by merchants who operate in the iGaming industry?
Regulatory Compliance: Carrier billing can navigate regulatory hurdles with ease. By partnering with mobile operators, iGaming platforms can leverage established relationships and compliance measures to ensure seamless transactions even in regulated markets.
Payment Blockage Avoidance: Carrier billing mostly bypasses the payment blockages associated with credit cards and banks. Since transactions are added to users’ mobile phone bills, there are fewer concerns about transaction denials.
Enhanced Privacy: Carrier billing offers a level of privacy that traditional payment methods cannot match. Users do not need to share their credit card details or banking information, reducing the risk of data breaches.
Simplified Payment Funnel: Carrier billing simplifies the payment process significantly. Users confirm their purchases, and the cost is added to their mobile phone bill. This straightforward approach reduces the chances of drop-offs during the payment funnel.
Over the last few years carrier billing has become a competitive payment method in the crowded marketplace. Its potential in the iGaming sector is huge. It is the perfect method for microtransactions, which allows users to easily make impulsive bets or deposits.
Transactions are almost instantaneous, meaning customers can start betting or playing immediately after confirmation, enhancing the user experience. As iGaming increasingly shifts to mobile devices, carrier billing aligns perfectly with this mobile-centric approach, ensuring a seamless experience which encourages new and casual players to participate.
Carrier billing is a game-changer in the iGaming industry
It offers a solution to the challenges faced by both players and operators. It simplifies payments, ensures regulatory compliance, enhances privacy, and provides instant transactions—all while avoiding the payment blockages commonly associated with traditional payment methods. As the iGaming industry continues to evolve, carrier billing stands out as a great way to provide players with a seamless and secure payment experience, encouraging greater participation and growth.
However, it is important to note that there is no magic, one size fits all payment method. And this applies to carrier billing too. Although it solves many of the issues faced by merchants; an optimal payment set-up should include a variety of payment methods in order to cater for the wide range of users who participate in iGaming.
To find out more about how carrier billing could boost your business contact DIMOCO Payments’ iGaming experts.
About DIMOCO Payments:
DIMOCO Payments is a payments company with over 20 years’ experience that provides local payment methods on a global scale. With expertise in complex payment setups, DIMOCO Payments provides a consultative approach, partnering with merchants and enabling them to reach their payment goals.
With over 100 payment methods available and acquiring capabilities, it is the partner of choice for merchants looking to grow. For more information, visit: www.dimoco-payments.com