Slotegrator’s executive put together a summary of the most popular payment methods in each market for online casinos and sportsbooks to offer their players the methods they need. This new analytical article details popular payment methods in markets around the world, from Europe to Latin America, Africa and Southeast Asia.
Before being able to deposit €10 on the 10/1 loser or place their bets on roulette, players must take a crucial step: their first deposit. online betting odds Nigeria, Online casino and sports book operators need to know the payment landscape like the back of their hand in order to offer players from different regions the payment methods they need. Read more about Satta Matka.
Credit cards like Visa and Mastercard are accepted worldwide, allowing users around the world to make payments with a card, a phone, or even a watch. But in the iGaming industry, they are not a one-size-fits-all solution.
Gambling is often classified as a high-risk industry due to concerns about links to organized crime, money laundering and terrorist financing. Credit card issuers use four-digit Merchant Category Codes (MCCs) to identify the industry that the merchant is a part of. The MCC for private gambling operations, separate from those run by the government, is 7995. If a credit card holder in a region where gambling is prohibited attempts to access a gambling site, the card provider The credit card recognizes the MCC code 7995 and blocks the payment.
Aside from jurisdictions where gambling is prohibited, players may be blocked from making deposits with their card due to strict regulations, an irregular financial system, or the simple fact that they lack a formal bank account. Fortunately, there are a variety of other services players can use, such as:
- Bank or electronic transfers
- Instant transfers
- payment gateways
- electronic wallets
To optimize their payment processing, online casino and sportsbook operators should familiarize themselves with the preferred payment methods in their markets of operation.
The most popular payment methods in Europe are Visa and Mastercard, but different regions have their own local alternatives, particularly in jurisdictions that prohibit the use of credit cards for gambling transactions.
In Germany, for example, regulations prohibit the use of credit cards for Online Cricket Betting ID and betting. Instead, German players use Sofort, the leading payment provider on the German market. Sofort offers secure transactions with minimal steps and is also popular in Austria, Belgium, and the Netherlands.
With nearly 100% of its 67 million citizens using the Internet, the UK is one of the largest e-commerce markets in Europe. And due in part to a cultural love of betting on football and other sports, the country boasts a huge gambling market. According to a 2021 report from the UK Gambling Commission, online gambling participation in the country has risen to almost 18% (excluding those who only play the national lottery).
Due to regulations introduced to combat problem gambling, as of April 2020, the use of credit cards for gambling payments has been banned in the country. UK gamers often use their debit cards, services such as PayPal or open banking, a rapidly developing financial technology that uses APIs and open source technology to increase security and transparency.
The Multibanco interbank network dominates the Portuguese payment space, with more than 12,700 ATMs nationwide from 27 banks participating in the network. Multibanco’s online payment service, MB Net, guarantees security by generating a virtual credit card that keeps the provider’s real card details secret. Other popular payment methods in the country include card payments, PayPal and various payment systems, as well as open banking, direct debit and bank transfers.
- open banking
While credit cards are the preferred option in the UK and the rest of Europe, they are far from the most popular option in Latin America.
According to a 2020 MasterCard report, only 55% of Latin American adults have a bank account and only 19% have a credit card. Internet users in the region prefer to make payments online using bank transfers. During payment, they are redirected to their bank’s payment page or choose their bank from the list of service providers or sellers of goods. In most cases, payment authorization occurs instantly.
Payment processors are doubly important in some Latin American nations, as banks and other financial institutions have long distrusted the gaming industry and refuse to process transactions for sportsbooks and casinos.
The most popular local payment system in Brazil is BoletoBancário, an official payment system regulated by the Central Bank of Brazil. The user can pay for the service through BoletoBancário in cash at any bank branch or at an authorized provider. Players can also make payments using one of the 48,000 ATMs across the country, through mobile or online banking. Similar systems are popular in other Latin American countries, such as Mexico.
Online gambling is booming in India, with 73% of respondents to a 2021 YouGov survey stating that they would rather play online than in a traditional casino.
Fortunately, Indian players have an integrated national network of financial institutions to rely on. The National Payments Corporation of India (NPCI) provides infrastructure for the country’s banking system. Unified Payment Interface (UPI) integrates multiple accounts and banking functions into a single mobile app; the Bharat Interface for Money (BHIM) app uses UPI for quick and easy transactions.
The most popular payment method in India is PhonePe, an app that allows users to make fast and secure payments using BHIM UPI, credit cards, debit cards or e-wallets. PayTM is equally popular in India, which has some 25 million registered users. In addition to electronic commerce, the service covers financial transactions through electronic wallets and mobile payments.