By 2027, the online gambling market size value is expected to reach $127.3 billion. With such intense market growth, online gambling providers such as online casinos, betting sites, and others have a chance to expand their services and make them more available. One way of doing so is by making payment processing easier.
Yet, given the high-risk nature of the online gambling industry, merchants may frequently experience difficulties in setting up accounts with payment gateways. Due to money laundering and fraud within certain sectors of the industry, selecting the right gambling payment gateway has become an even greater priority.
Why it can be hard to find a payment gateway for your online gambling business
Gambling websites frequently struggle with finding payment gateways and processors to handle their transactions. Some of the reasons why many financial services shy away from the gambling industry include:
- High volume turnover: The high turnover volume of gambling websites makes them difficult to monitor and assess by gateway partners which increases risk.
- Heavy website traffic: Much like high turnover, heavy traffic makes monitoring transactions difficult, and creates the potential for fraud to slip through the cracks. It may even overwhelm the gateway under certain circumstances.
- Inordinate chargeback rates: Gambling websites frequently experience friendly fraud attempts in the form of chargebacks.
- Risk of money laundering, fraud, and know your customer (KYC) issues: Money laundering or instances of identity/card theft also present a serious threat to gambling operations and, by extension, to gateway providers.
- Significant regulatory hurdles: Gambling is usually heavily regulated and your payment gateway must comply with a long list of requirements in order to process payments.
For these reasons, amongst many others, it may be hard for gambling websites to find a payment solution to begin with.
What to consider when choosing a payment gateway
In addition to the above challenges, businesses also need the gateway to meet a number of specific requirements. Payment gateways need to be able to offer:
- A variety of payment methods: While some customers may use their credit or debit cards, a growing number of them prefer alternative payment methods. These may include digital wallets, different currencies (including crypto), account deposits, or even local bank transfers.
- Fast transfers and low fees: Ensuring fast transfers is a must with any gambling website that wants to retain its users. Long processing times and high fees will put off users who want to have immediate access to the service and spend a minimal amount of time dealing with payments.
- Increased security: Online gambling websites require payment solutions that guarantee the safety of customers' funds and personal details. From instances of friendly fraud to money laundering attempts, gateways need to be able to offer high degrees of risk and fraud management, such as PCI compliance.
- Regulatory compliance: Any payment gateway that wants to process payments from gambling websites needs to operate in the locations where users are based. The gateway also needs to comply with all local security standards as well as certain financial regulations.
Online gambling businesses need to consider all of these when vetting payment gateways. Choosing a gateway that can both ensure the security of funds and regulatory compliance, but also provides UX that boosts customer acceptance, is key.
So what can Skrill do for gambling websites in need of a payment solution?
Why you should choose Skrill as your payment gateway
As a payment gateway, Skrill addresses considerations around payments, security, and compliance, and provides your customers with the following benefits:
- Access to over 100 local payment options, including popular credit and debit cards, local banks, NETELLER digital wallet, paysafecard, and more
- The option to pay with only a username and password, without being redirected
- "Remember me" option and instant repeat payments thanks to Skrill 1-Tap
- A loyalty program available to all Skrill customers
- High protection of payments and personal information
- Smooth customer experience
Plus, by adding Skrill as your payment gateway you will benefit from the following:
- Full chargeback protection as a standard option
- A multi-currency account with over 40 currencies all managed through one account
- One contract and a single API to get started with Skrill
- Increase in traffic, customer acquisition, and retention
- Marketing opportunities that allow you to connect with millions of customers globally