Lockdowns, online shopping, and a pervasive fear of pathogens have expedited the switch to various types of digital payments during the last two years. Companies and customers are increasingly shifting to e-commerce and digital purchasing habits, especially among younger generations, who have completely adopted electronic wallet services, P2P payment applications, contactless payments, cryptocurrencies and even alternative methods such as eChecks and digital credit.
As competition heats up, value-added services may help digital payment providers, processors, payment platforms, and even merchants distinguish out and establish new, diversified revenue streams.
The iGaming business, which has always been recognized for pushing the boundaries of innovation and being eager to embrace the most recent technology breakthroughs, is one of numerous markets that have benefited considerably from the introduction of digital payments.
This swift embrace of electronic payments has enabled iGaming operators to draw in new generations of customers and increase an already expanding market as the sector grows at exponential rates, particularly in the wake of the COVID-19 outbreak, with bettors now being able to play a multitude of online games and place bets on major sporting events.
Digital payment systems are emerging all over the world as a result of the banking sector and businesses from other industries prioritizing digitalization in 2020 and 2021. Additionally, consumers are digitizing their in-person and online transactions, paving the way for cutting-edge innovations like contactless payments and digital wallets.
According to recent research, applications like Venmo and Zelle have grown significantly in popularity, and the transaction volume in these platforms reached about $400 billion in 2020, as a result of massive user growth.
The capacity of iGaming operators to monetize their services will be expanded as these payment methods mature, since greater volume has put the industry in a better position than ever to begin extracting revenue from these platforms.
E-wallets
Digital wallets, or e-wallets, are payment platforms that store users’ credit or debit card information on mobile devices, personal computers, and even gadgets. These services can handle credit cards, rewards cards, and memberships, among other things, and thanks to their convenience and ability to decrease frauds, consumers are increasingly gravitating to mobile wallets.
For example, by 2020, 76 percent of customers stated they had increased their use of this payment method, with 43 percent indicating they had increased it “considerably.”
Digital wallets like Apple Pay, Google Pay, PayPal, and other P2P services are widely used by Generation Z, who also quickly catch up to older consumers in terms of their use of other digital payment services. This age group uses Apple Pay significantly more than other generations for digital payments.
The number of operators in the iGaming industry using digital wallets as deposit and withdrawal options has increased significantly over the past two years, in part because these platforms allow for quicker transactions and make funds available in a matter of minutes.
eChecks
eChecks, also known as electronic checks, are digital versions of conventional paper checks. With it, funds are electronically withdrawn from the payer’s account, transferred over the ACH network (a network used by US banking institutions to withdraw payments directly from the customer’s bank account), and deposited into the recipient’s account.
Processing checks electronically is far quicker than processing checks on paper. Technology enables the procedure to happen online, saving time and reducing paper waste compared to a consumer manually writing out a paper check and mailing it to the company they need to pay.
Since banks and other organizations have trusted eChecks since the late 1990s, it comes as no surprise that the majority of US online casinos now do as well. Funding your iGaming account using eChecks is no more complex than using e-wallets or credit cards, and all you have to do is find an eCheck online casino that best suits your needs.
Payment applications
Mobile digital payment applications, one of the hottest trends in the internet these days, allow customers to transfer money to another person or company using just a mobile device.
Leading P2P providers reported a double-digit surge in monthly app downloads in 2020, a trend that continued into last year, with 30 percent of individuals in the United States signing up for new P2P platforms in the first half of 2021.
These applications are enabled by a variety of technologies, including machine learning and artificial intelligence. As customers continue to use payment applications to make purchases, machine learning technology may investigate and improve these experiences. This better user experience ensures fraud protection and increased security.
Square Cash, Venmo, Zelle, and Cash App are among the most popular mobile payment applications, and even Meta, Facebook’s parent corporation, has entered this new market. The majority of these applications have been used by iGaming operators in an attempt to attract clients of all ages.
