Financial technology, otherwise referred to as fintech, is at the center of every business’ priority in the digital age. The pressure to enhance and keep improving on the customer experience has made the space very competitive. This means that consumers or users now have more choices than ever and that they can expect high-quality services regardless of the platforms they find to be best for their needs.
Unsurprisingly, one of the sectors that have been very keen on the changes happening in the financial and payments industries has been the gambling sector. More specifically, online gambling heavily relies on the integration of robust and reliable payment options. That said, it is safe to assume that payments are not just a supporting feature. They are now a defining feature that has the power to shape modern online gambling.
Let’s have a look at some of the ways through which fintech has been shaking up the online gambling industry.
Speedy Payments on Mobile
Across the globe, there is a massive reliance on mobile devices such as smartphones and tablets. These are not only affordable and accessible communication devices but they also double up as entertainment gadgets. These powerful hand-held devices have found lots of use cases over the years key among them being mobile gaming.
One other area that took off was mobile banking and mobile payments. Over the past decade, we have witnessed a massive influx in the number of mobile payment apps. These range from newcomers such as CashApp and Venmo to apps from companies such as PayPal that have been around since the early days of the internet.
For most people, there are some factors that come into play when choosing a gambling payment method. Mobile compatibility stands out as a top priority. Now players can not only enjoy the convenience of playing on the go but also quickly and easily move their funds to and from their online casino accounts.
Transaction Cost Savings
Being able to quickly send funds to your casino account or withdraw payouts is, of course, a good thing. However, many of the payment methods that dominated the sector for a long time charged some rather outrageous transaction fees. This was a disadvantage for both the players and the casino operators.
Thankfully this has since changed. First, the advent of digital wallets or e-wallets like PayPal showed us what’s possible. After that, the arrival of digital currencies and blockchain years later opened the doors to some unprecedented changes to transaction costs. These technologies increased efficiency while significantly reducing transaction costs that were characteristic of most other payment methods.
It goes way beyond that. Blockchain and digital currencies did not just disrupt the online gambling sector. They have gone on to usher in a new breed of online casinos. These days, finding an online casino that is built around the blockchain is very easy. In addition to getting all the perks of regular online casinos, the users of these sites also get to enjoy amazing provably fair casino games. Furthermore, these sites allow their customers to get a feel of what using crypto would look like.
Anonymity on Gambling Platforms
Privacy, like cost-effective transactions and fairness, has always been important to gamblers. Many people have even opted to skip online gambling due to skepticism about their privacy. This is justified especially considering that a lot of online gambling sites asked for lots of personal information especially if you are playing for real money.
Modern fintech solutions including some e-wallets and digital currencies seem to have solved this problem. They have done this by significantly reducing or, in some cases, eliminating, the need for online gamers to provide personal information. This way, customers get to have more peace of mind knowing their data will not be stolen since it was not given out in the first place. They also get to keep their gambling activities private.
It is worth noting that there have been some concerns regarding how this may contribute to fraud or underage gambling. While this is a valid concern, gambling regulators and operators have been working towards more robust ways of protecting the users. The introduction of tools such as AI and machine learning to help in identifying suspicious behavior is one of the ways of going about this.
What Happens to Traditional Payment Methods?
With all the new-age fintech developments that are now deeply rooted in our day-to-day lives, you might be wondering what will happen to the traditional options. Well, it is quite clear that they must adapt to the dynamic technology-driven environment to remain relevant.
Many of the previously leading payment methods are now considered to be outdated when it comes to making payments. Bank wire transfers and cheques have always been known for their high-level security but in the digital realm, they just do not cut it. In addition to being very slow, they just do not offer the same kind of convenience that modern gamblers enjoy when using mobile-first payment methods, for instance.
It is not all bad though. Some traditional payment methods have still managed to stay relevant thanks to their commitment to adapting to the latest technologies. Great examples of this are the credit and debit cards that are still widely accepted by many online gambling sites across the globe. Finding a casino that accepts MasterCard, Visa, and American Express is a breeze owing to the large number of sites that accept them. Moreover, they still offer decent perks including reasonable transaction costs, respectable processing speeds, and world-class security.
Other options like gift cards and electron checks (e-checks) are also still widely used especially by older generations of gamblers that are looking for familiar options they can trust. They might have some limitations but they are ultimately working in line with the compromises that their users are willing to make.
The Future of Fintech in the Casino Industry
Technology keeps getting better by the day. The financial and payments sectors are bound to be affected by these changes which makes it very important for both gamblers and online casino operators to brace for these shifts. Some will be gradual while other changes will be abrupt.
As the market keeps getting competitive it is quite clear that there is a lot to look forward to with regards to. Most of the modern and emerging payment solutions are built with the consumers in mind. This means that they are easily accessible to anyone and can be trusted. Eventually, we expect even traditional payment service providers to tweak their business models appropriately.
Many mainstream organizations, for instance, have been keen on adapting the blockchain and crypto. That is just the beginning though. There is a lot more to come and we cannot wait to see how this works in the favor of online gamers.