“iGaming” is a general term for all forms of online gambling. This includes sports betting, online casinos, poker, and eSports. Propelled by technological innovations and expanding internet accessibility, the worldwide iGaming market is expected to reach $583.69 billion by the end of 2030,

according to Grand View Research

.

However, the iGaming industry could reach even greater heights by integrating crypto payments. In this article, we delve into the synergistic relationship between iGaming and cryptocurrency, exploring how this convergence is reshaping the future of online betting.

The iGaming industry faces several challenges related to online payments. These obstacles affect the efficiency and compliance of gaming platforms and significantly influence the user experience.

Chargebacks are a significant problem in iGaming. A chargeback occurs when players dispute a charge after a loss, leading to financial losses and considerable administrative burdens for the platforms. The unique nature of iGaming services makes them particularly vulnerable to such disputes.

Let’s go through some of the reasons why chargebacks occur.

3 reasons behind iGaming chargebacks

What are the consequences of chargebacks?

Chargebacks carry a range of serious repercussions for iGaming merchants:

The cost of cross-border transactions remains a significant concern when using traditional payments. Unfortunately, the burden of paying these high fees mostly falls on the players. In particular, this affects players who are cost-conscious or engage in frequent transactions. High transaction fees are a major pain point and negatively affect player retention and overall satisfaction.

iGaming transactions can also suffer from significant delays. In the fast-paced world of iGaming, players expect their deposits and withdrawals to be processed quickly and efficiently. However, the reality is that the players often suffer from considerably long waiting times, especially when it comes to withdrawing winnings.

Even though people who bet on iGaming and online sports are usually tech-savvy, many still need help adding or taking out money from their accounts. This is one reason why these players stop using betting apps. As per a

survey

done by Betting Hero, almost one-third of the people (29%) polled had issues when they tried to put money into their accounts or take money out. 23% of bettors surveyed who couldn’t deposit funds expressed frustration by leaving the app and not returning.

To prevent players from quitting, businesses that manage these betting apps should consider ways to employ technology to simplify the process of putting in and taking out money.

The growth of iGaming worldwide is limited by different gambling laws in each country. In adherence to these laws, payment providers often impose geographical restrictions on transactions. It is hard for iGaming companies to grow into new areas and unlock new demographics and potential revenue streams.

The need for more transparency in the iGaming industry presents significant challenges, undermining trust, which is crucial between players and gaming platforms. A survey by the American Gaming Association (AGA) in August 2022 revealed that most participants highly value the legality and regulation of their chosen betting shops and online casinos. Licensing is often seen as a critical indicator of credibility and fairness.

The emphasis on a platform’s licensing status varies among players. Casual users may overlook it, but for those who rely on gambling as a significant income source or a regular hobby, it’s essential. This distinction is critical, especially when large wagers or significant winnings are involved. Instances of players not receiving their full winnings highlight the need for platforms to practice transparency and fairness.

A lack of transparency can result in widespread mistrust in the iGaming industry, impacting its reputation and future viability. Therefore, maintaining high standards of transparency and catering to the varied needs and expectations of players is vital for the sustainability of iGaming platforms.

Integrating cryptocurrency payments into the iGaming industry offers a transformative solution to the longstanding challenges detailed above.

A unique benefit of blockchain technology, which underpins cryptocurrencies, is its ability to counteract chargebacks. Once a transaction is validated and recorded on the blockchain, it becomes irreversible. This immutable nature of crypto transactions eliminates the risk of chargebacks. For iGaming platforms, this means greater financial security and reduced administrative strain.

One of the most notable advantages of cryptocurrency payments is the elimination of intermediaries. Traditional transactions involve banks or other financial service providers, each adding layers of fees and complexity.

With cryptocurrencies, direct transactions occur between two parties. This straightforward approach simplifies the process and significantly reduces transaction fees, making it a cost-effective solution for gaming platforms and their users.

The absence of an intermediary also accelerates transaction speed. Cryptocurrency transactions are generally faster than traditional international payments, which often get bogged down by the processes of banks and financial institutions

.

Cryptocurrencies transcend geographical barriers, enabling truly global transactions. This worldwide reach is particularly beneficial for the iGaming industry since they no longer have to be dependent on the whims of the regulators controlling the banks in various regions.

This allows platforms to expand their customer base internationally without the complications of traditional currency conversions and cross-border payment regulations.

Along with immutability, blockchain technology also ensures complete transparency. This cryptographically verifiable transparency has led to the development of ‘provably fair’ gaming platforms. In these platforms, the game outcomes are cryptographically verified and impossible to manipulate. This level of transparency builds player confidence and enhances the gaming experience’s overall integrity.

The iGaming sector is set to revolutionize its operational model by integrating cryptocurrency payments. This innovative approach promises solutions that entail lower transaction fees, expedited processing times, the elimination of chargebacks, broader global reach, and unparalleled transparency. These advancements are paving the path towards a more efficient and secure iGaming environment and fostering a foundation of trust and reliability in the digital gaming world.

For iGaming businesses considering integrating cryptocurrency payments, EukaPay offers a comprehensive solution tailored to the needs of modern businesses, incorporating a user-friendly point-of-sale and invoicing platform.

By embracing EukaPay’s advanced payment solutions, your business can confidently step into the future of digital commerce, armed with the tools for success in a rapidly evolving market.

To discover how EukaPay can transform your business operations and propel you to the forefront of financial innovation, visit EukaPay’s website today. Begin your journey towards a more efficient, secure, and profitable future in the dynamic world of iGaming and beyond.

Start your journey with EukaPay

and unlock the potential of cryptocurrency payments in your business.

Eukapay is a leading Canadian crypto payment platform that bridges the gap between traditional finance and the digital currency economy. Our secure, user-friendly service enables merchants to accept cryptocurrency payments and instantly convert them to dollars or stablecoins, tapping into a vast market of over 300 million crypto users. Dedicated to innovation, compliance, and customer success, Eukapay is more than a payment processor — we are a committed partner in propelling businesses forward in the global digital marketplace.

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