It’s difficult to get the exact percentage of people who use betting apps, but the data from 2022 suggest that more than 30% of bettors use them. The survey was conducted by TMG research and the sample consisted of 44 countries.
The gambling industry expands gradually every year, and thanks to well-optimized apps and seamless mobile payments new gamblers can easily join in. Even payouts on gambling sites have become significantly faster. If you were to play on the fastest Interac withdrawal casino brands you would see that cashout is possible in under 1 hour. Clearly payment methods play an important role in this industry, and it goes beyond enhancing user experience.
So, if you want to know more about frequently used payment options in the betting sector make sure to stick around. We’ll talk about different types of systems and what kind of advantages they bring.
Importance of Payment Methods in Betting Apps
In the on-demand culture we live in today users have high expectations from almost all online businesses. This is why the best betting apps employ modern digital payment methods and allow users to make instant deposits and withdrawals. Some examples that are used for both online gambling and shopping are:
- Digital wallets (Skrill, Neteller, PayPal)
- Debit card (Visa, Master Card)
- Mobile wallets (Google Pay, Apple Pay)
- Vouchers (Neosurf, Paysafecard, Flexepin)
Not only are these methods fast, but they are also highly secure. Some of them, like vouchers, allow you to make payments without sharing your account information.
What’s more almost all of these payment providers function on top of the legacy banking system, and need to be compliant with financial regulators. By adding these payment gateways and collaborating with the companies, betting brands also make commitments to do customer due diligence and KYC analysis. In a way, betting and casino sites can help in preventing financial crimes.
Traditional Payment Methods
Almost all sites accept traditional banking methods. By traditional we mean wire transfer, and Visa and Mastercard credit and debit cards. This is something any player can use, and it’s basically a default banking option in almost any sportsbook or casino.
After all the the iGaming industry is regulated in Europe, the US, and other geographies. These regulatory frameworks might not be identical but they do have a lot in common. Regulated gambling businesses are obligated to maintain a bank account and a separate account for player funds, so it’s impossible for wire transfers not to be an option.
Still, even on licensed sites, players aren’t too eager to use these payment methods. The reason is, that they aren’t comfortable leaving their card information or bank account number online. However, there are certain safety features that only credit cards offer. Credit cards are the only payment method with a chargeback option. This means that players can request for money to be charged back to the account even after 30 days. This is also one of the reasons why many casinos don’t actually accept credit card payments.
E-Wallets
Betting sites in the US and Europe are highly likely to support PayPal payments. This is one of the biggest payment companies with more than 426 million active users. So it’s only natural that operators want to cater to that audience. The more accessible something is the more active users you are likely to have. It’s why sports leagues are okay with other apps streaming the matches. They want as many active viewers as possible.
Other popular e-wallets in the US and Europe are Skrill and Neteller, and both are owned by the international company Paysafe. Just like PayPal, both are widely used as a substitute for bank cards. You get to choose how much money you want in that account, and online transfers are instant. The only downside of PayPal, Skrill and Neteller is transfer fees. In some instances, operators may charge extra when processing transfers via e-wallets.
In Canada though, Interac takes the top spot for the most used online payment method. It acts like a middleman in the bank transfers, but the payments are instant and the account information remains private. This is one of the safest methods to use in Canada, but the downside is that it’s only available in Canada.
Mobile Payment Solutions
Another widely used method is mobile wallets like Apple Pay and Google Pay. These are already integrated with betting apps that you download from the App Store and Google Play. The advantage of mobile wallets is that they add another layer of security. You do need to integrate your card with mobile wallets, but the card information isn’t displayed throughout transactions. In essence, the transfer is viewed as it is between the operator and Google or Apple.
There is another mobile payment method called Boku. This one functions a bit differently. Rather than using your payment card or a bank account, it adds your expenses to your phone bill. This is a great way to allow users who don’t have bank accounts or digital wallets to bet online.
All mobile payment methods are a great and secure option for deposits. They are fast, you can authorise them instantly, and as mentioned they are integrated with the app. However, you cannot use mobile wallets to cash out your winnings.
Cryptocurrencies
The number of businesses that accept cryptocurrency is constantly growing. Today that number is around 15,000, and dozens if not hundreds are crypto online gambling sites. Granted, these brands are usually licensed in Curacao and other offshore jurisdictions, but they do accept players from other regions.
In most cases, the accepted currencies are Bitcoin and Ethereum but other stablecoins like Tether, Litecoin, and Ripple are also common options. Crypto is one of the safest and fastest ways to transfer funds nowadays, and even cross-border payments are processed within minutes. Since, KYC isn’t required on blockchain-based systems some brands even allow players to gamble anonymously, without profile verification.
The problem with crypto is that you will have to convert it into fiat once you fund your betting account. So, there will be some additional costs when you convert your balance. That being said, there are apps that strictly operate in crypto, and you maintain your balance in Bitcoin or Tether. Another issue is that you can’t use it on EU and US betting apps.
Prepaid Cards and Vouchers
Vouchers or prepaid cards can be purchased in various outlets for cash. They usually contain a code that once entered will transfer the money that’s on the voucher to another account. Some common examples of prepaid cards that betting apps accept are Neosurf and Paysafecard.
The great thing about these vouchers is that the transfers are usually free, and you don’t have to enter any card or bank information. So they do have a higher level of privacy. However, you will eventually have to pick another transfer option when you decide to cash out.
Regional Payment Methods
Many brands operate in multiple geographies and they aim to localize their site and create an appealing offer for players who live there. This is the main reason why regional payment methods have become a big hit. Players get to use the most trusted banking provider specific to their region, which is also regulated locally. Here are some examples of these options:
- Giropay (Germany)
- Blik (Poland)
- PayID (Australia)
- iDEAL (Netherlands)
- Trustly (Sweden)
Regional processors tend to be cheaper and just as fast as other digital banking options. The only real problem is that they are region-restricted. So you need to have a bank account in a local bank in order to use them.
Conclusion
Clearly, there are more than enough payment solutions to go around. From that perspective, online betting is highly accessible and safe. Each of these options has its strengths and weaknesses, so you can definitely find the one that aligns with your personal preference.
