Of all the smaller markets that have risen to prominence within the gigantic iGaming market, one area that has been a hive of action since the turn of this decade is the battle for payment method dominance.
Gone are the days of basic, well-known providers such as Visa and PayPal ruling the roost. While they are still the main payment methods that online gamers use, the rise of alternate payment methods has taken a considerable chunk out of the market that these companies have enjoyed for over a decade.
Gaming markets where alternate payments are surging
Alternate payments, such as on-site currencies, have attracted an audience in the world of casino gaming. However, the payment method that has started to cause the biggest stir is the rise of cryptocurrencies.
For those of you who don’t have a solid knowledge of the crypto industry, Bitcoin is most likely the one you’re most familiar with. While it does dominate the sector and remains the largest asset in the digital currency space, casinos have also branched into altcoins such as Ethereum, Solana and XRP, allowing casino gamers to use a host of altcoins for their betting.
With so many different online casino sites and the plethora of payment options emerging in recent years, they’ve become one of the key criteria that experts assess when they are determining the quality of a site.
Of course, there are plenty of different types of casino games, but slots gaming has spearheaded a large chunk of the transformation we have witnessed in iGaming over the last quarter of a century. When experts assess the quality of online slots, it’s just as much about availability as it is about the quality of a game. Those titles that are available to play right across the spectrum of payment methods stand the best chance of maximising their potential audience.
What’s behind the rise in cryptocurrency?
Analysts in the industry believe there could be any number of reasons that cryptocurrency has surged in both casino gaming and the broader gaming industry. Personally, I think it’s down to two things: convenience and visibility.
Crypto gaming platforms require a wallet connection and, obviously, the crypto of your choice. Once you have connected your wallet and approved the transaction, the payment should go through within seconds. The same applies to withdrawals, although some platforms will have their own KYC and withdrawal limits, so read up on them before you begin using their service.
What do we mean by visibility? Since 2013, cryptocurrency has gone from being something that was only ever discussed in the corners of internet forums to BlackRock holding billions of dollars’ worth of it on their balance sheet. This might not mean too much to you if you don’t know the world of finance, but in lay terms, it means big money is flowing into crypto.
With such incredible levels of investment, there’s a trickle-down effect that results in companies, especially platforms like crypto casinos and sportsbooks, looking to scoop up some of the market for themselves. Ultimately, they want to provide an avenue and allow millions of retail investors the opportunity to use their cryptocurrency for products and services they recognise – which is resulting in an explosion in the number of cryptocurrency casinos out there.
That’s not to say cryptocurrency casinos or companies are impenetrable; recent news, such as what happened to Bybit, showcased that they can still be targeted by shady cybercriminals. However, there’s no ignoring that they are arguably more convenient, and they’re certainly the latest big trend in traditional finance.
Traditional payment systems
While cryptocurrency might be making a lot of headway in the gaming market, traditional payment methods have been around for decades and are tried and tested. If you’re used to using traditional payment options and you don’t have a good knowledge of cryptocurrency and other digital assets, then the best bet is to steer clear. If you’re looking to branch out, make sure you do your research.
Traditional payments don’t just cover Visa payments – they encompass older e-wallet systems such as PayPal and Neteller, both of which played a seminal role in the development of the online casino industry, especially in the late 1990s and early 2000s.
Conclusion
Out of all the online payment methods that have emerged in gaming over recent years, cryptocurrency and blockchain systems show the most promise in transforming the industry. E-wallets, PayPal and Apple Pay etc all have their own level of promise, but they still rely on traditional currencies and banking systems.
Cryptocurrency, on other hand, is completely separate from this world – once you have your tokens in your crypto wallet, you cut out the third party in the transaction – the traditional banking system.
Sure, there are other considerations, such as gas fees and fees implemented by specific crypto gaming providers, but on the whole, crypto is proving to be a hit among the gaming fraternity. As long as cryptocurrencies in general can continue to pick up momentum and become a force in traditional financial circles, encourage institutional investment and provide a genuine alternative for gamers, we could see their influence growing significantly over the next decade.