According to Worldwide Asset Exchange (WAX), one third of the global population are gamers and 55% of these own cryptocurrency, wagering around $3m on a daily basis. This shift from more traditional payments shows that cryptocurrencies are fast emerging onto the igaming scene – but why are these players opting to use crypto?
“Cryptocurrency payments offer enhanced security and privacy compared to more traditional payment methods,” says CoinPayments CEO, Sean Mackay. “Cryptocurrencies facilitate faster and more efficient transactions, allowing players to enjoy seamless, near instant deposits and withdrawals. The decentralised nature of cryptocurrencies also eliminates the need for intermediaries, resulting in lower transaction fees and greater financial autonomy, all in all making crypto an appealing choice for igaming enthusiasts seeking a modern and convenient gaming experience.”
“By accepting crypto payments, igaming platforms can tap into a growing market of crypto enthusiasts who prefer using cryptocurrencies for their online transactions. This allows platforms to attract a broader user base and potentially increase their revenue”
Tapping into this, however, is no mean feat and that’s where CoinPayments saw a gap in the market. Helping operators to make the move into cryptocurrency payments is CoinPayments’ bread and butter and that’s why it’s one of the leading crypto payment solutions on the market today.
Playing the payments field
Revolutionising the way businesses transact globally since 2013, CoinPayments is the first company to have developed a complete crypto payment gateway that allows merchants to accept over 100 cryptocurrencies and hold over 2,000+ altcoins on a single platform. It’s no surprise, therefore, that it boasts over 120,000 registered merchants and more than 1,000,000 accounts.
For the igaming industry, it is CoinPayments’ robust and secure infrastructure, alongside its seamless integrations with igaming platforms, that has proven to be most enticing. Pair these with the fact that CoinPayments’ solution has advanced security measures to protect transactions and user data against malicious threats and it’s understandable why Mackay believes it should be the go-to for operators’ cryptocurrency needs.
“The level of reliability and trust that we offer is crucial in the igaming industry, where customer privacy and financial security are paramount. We offer competitive transaction fees starting as low as 0.5%, and a user-friendly interface, making it easy for igaming operators to implement and manage cryptocurrency payments.”
Offering everything from multicoin wallets, auto coin conversion and cryptocurrency vaults to auto payments and ‘auto-forward’ products, CoinPayments has the ability to integrate crypto into any platform. According to Mackay, it is these factors, combined with its excellent customer support and a track record of successful partnerships, that gives CoinPayments a competitive edge.
Innovators in the industry: What operators need to know
The benefit to accepting cryptocurrency bets isn’t just to the player; some of the hardest payment challenges are taken off of operators’ shoulders.
“CoinPayments effectively eliminates critical hurdles faced by operators, including chargebacks and settlement delays which can have huge detrimental effects on player retention and even losing potential players at the point of sign-up,” says Mackay.
Along with these benefits, one of the biggest advantages for the operator is the ability to have faster and cheaper transactions. Traditional payment methods often have lengthy processing times with the need for multiple third-party approvals, leading to delays and higher fees. Cryptocurrencies, on the other hand, facilitate instant peer-to-peer transactions with minimal transaction fees, enhancing the overall user experience and the potential for higher player satisfaction and, in turn, retention.
The igaming industry: Where are we at with cryptocurrency now?
Cryptocurrency in igaming is still in its infancy, and the industry has a fair way to go before it becomes the front and centre option for both players and operators alike. There is, however, movement in the market which CoinPayments has identified as a tell-tale sign that the spotlight is going to be on crypto in the very new future.
“We have observed several key trends with cryptocurrency in the igaming space recently. The first is increased adoption – igaming platforms have embraced cryptocurrencies as a form of payment due to their security, transparency and speed of transactions. This, in turn, has led to a rise in crypto adoption among igaming players, especially those who value their anonymity and privacy.
“Secondly, igaming platforms often incentivise players to use cryptocurrencies by offering exclusive bonuses or rewards which aim to encourage players to adopt cryptocurrencies as their preferred payment method. In fact, we note that some igaming platforms have emerged that solely operate in the crypto space. These platforms exclusively accept cryptocurrencies for deposits, wagers and withdrawals. They cater to crypto enthusiasts who prefer to engage in igaming activities within the crypto ecosystem.”
The third trend is one that doesn’t just change the way players are placing bets, but the way they’re playing games. NFTs take online casino games to a new level, far beyond the traditional games that we’re accustomed to with players able to buy and trade virtual assets of the games.
“Finally, there is the crossover with NFTs, which have gained significant attention in the crypto space. In some cases, igaming platforms have started integrating NFTs into their offerings. This involves using NFTs as collectibles within games or creating NFT-based virtual assets that can be traded or sold, which is a whole new avenue.”
Core crypto gamblers profile
Though these trends are used to form the foundations for CoinPayments’ strategy to take the igaming world by storm, Mackay believes it is equally important to understand what this new profile of crypto gambler is.
“In terms of a typical crypto gambler’s profile, there are certain characteristics that are often associated with igamers. They are usually tech-savvy individuals who are well-versed in cryptocurrency. They have a strong understanding of the decentralised nature of cryptocurrencies, exhibit a high-risk appetite and enjoy the thrill of speculative investments.
“They are also usually early adopters of new cryptocurrencies and enjoy exploring potential opportunities for profit in the crypto market. In general, igaming tends to attract a younger audience, which makes them an ideal long-term customer. However, it’s fair to say that the crypto igaming space attracts a diverse range of participants with varying backgrounds and motivations.”
Standing out from the payments competition
“The demand for crypto-related services has skyrocketed, resulting in a larger customer base but also higher expectations and standards.”
CoinPayments isn’t the only payments provider in the industry to detect the growing success of crypto igaming. With so many suppliers all vying for operators’ attention, standing out from the crowd and slotting into the first-place choice for crypto igaming payments is paramount. Mackay believes that CoinPayments already has a competitive edge, however, with its reputation for providing trusted, efficient and secure platforms.
“Our USPs are strong – the exceptional range of payment solutions and vast global user-base we have. Renowned for our strong reputation and extensive experience, we deliver a payment platform that excels in crucial areas such as reliability, security, speed, user-friendliness and unparalleled customer support.
“By leveraging these strengths, igaming operators can elevate their operational efficiency, increase revenue, improve customer satisfaction and cultivate long-term loyalty. CoinPayments instils unwavering confidence in all its clients, making a significant contribution to building a trustworthy gaming ecosystem.”
As one of the early adopters of cryptocurrency payments, CoinPayments is ahead of the curve on other payment providers entering the populated market. But Mackay doesn’t think this means that the company should stay static; instead he thinks that innovations should always be at the forefront of the game plan.
“To stay ahead, we continually innovate and expand our offerings. We have had to adapt to the changing market dynamics, handle regulatory challenges and address evolving customer needs. Despite the increased competition, we do have the advantage of experience, an established customer base and a deep understanding of the crypto market, which positions us well to maintain our competitive edge.”
Where is more education needed?
Innovating its product offering is just one piece of the ever-changing jigsaw for CoinPayments, especially with cryptocurrency still being a relatively new concept to operators. But with every new market comes the need for education, and that’s what Mackay believes could be the golden key to success.
“Many people are still unfamiliar with crypto fundamentals and potential benefits as it is a complex and evolving field. Players and all kinds of crypto users need education on various aspects, including understanding how cryptocurrencies work, the risks involved, security measures and best practices for making transactions or storing them.
“By focusing on educating players and other end users, we can enhance their awareness, understanding and confidence in utilising cryptocurrencies. This education can be provided through various means, such as our online resources. For example, we recently launched our portal, CoinPayments Media, with the goal of educating visitors and providing them with the latest news, trends, and industry insights. By empowering players with the knowledge they need, we can foster a more informed and responsible cryptocurrency ecosystem.”
Regulators have a role to play
It’s not just operators and players that need to familiarise themselves with the workings of cryptocurrencies, however. For any industry using cryptocurrencies, questions remain around regulation and compliance, which could give early adopters wary of such murky waters pause for thought. In the igaming industry especially, Mackay believes that regulators have to ensure that crypto is safe and trustworthy in order to drive more individuals and businesses to adopt crypto payments volume for their financial needs. And if they get this right, it could open up a whole host of new opportunities for operators and players alike.
“Regarding predictions for cryptocurrency and what could hinder adoption, we expect cryptocurrency to continue growing in popularity, with increased mainstream acceptance and further integration into financial systems. Additional regulatory measures will be implemented to address security and fraud concerns, providing legitimacy and stability to the market. Central Bank Digital Currencies (CBDCs) may also emerge as potential competitors to decentralised cryptocurrencies.”
Because of crypto’s inherent volatility, the team at CoinPayments understand it is currently less appealing as a stable medium of exchange and store of value. While the lack of clear regulations that currently exists in many jurisdictions creates uncertainty and risk for businesses and investors, Mackay says that the regulatory landscape is continually changing to address these concerns.
“Governments and regulatory bodies are actively working towards establishing clear frameworks to govern cryptocurrencies and provide a more stable and secure environment for their usage. As these obstacles are gradually overcome, the path towards wider adoption of crypto becomes increasingly promising and accessible to a larger audience.”
And if the igaming industry fully adopts cryptocurrency payments, they could change the game for some of the biggest challenges we’re seeing operators face on a day-to-day basis. Take KYC as an example. It’s the driving force behind regulatory changes across the world, especially since the UK Gambling Act review white paper highlighted safer gambling initiatives, so could cryptocurrency hold the answer?
The future of cryptocurrencies in igaming
Though predictions are just predictions, the numbers speak for themselves – cryptocurrencies are on the up with the aggregate market value of cryptocurrency exceeding $1.2 trillion last month. According to Mackay, CoinPayments expects the upwards trend of crypto payments volume to continue its progression into the coming years. “The increasing adoption of cryptocurrencies and the growing interest from institutional investors have been key drivers behind this trend,” he says.
“As cryptocurrencies gain more mainstream acceptance and integration into various industries, we expect the demand for secure and user-friendly wallets to rise. The evolution of wallets will focus on enhancing security measures to protect against hacking and fraud, while also improving user experience and accessibility. Integration with decentralised finance (DeFi) protocols and non-fungible tokens (NFTs) could further expand the functionality of crypto payments volume.”
So, with more and more players recognising the advantages of crypto in igaming, it could become the preferred payment option in years to come. Speed, security, lower fees and global accessibility make the adoption of crypto an increasingly attractive option, and operators are showing an increased appetite to capture this new tech savvy audience – all while streamlining operational costs. Could cryptocurrency be the answer to the igaming industry’s biggest payment woes?
Sean has been building and improving businesses over the past 15 years in industries ranging from events and entertainment to real estate and digital marketing. In 2016, he discovered cryptocurrency and blockchain and has been an advocate ever since. In 2018, he joined forces with CoinPayments to help further the adoption of cryptocurrency and bring it mainstream. Sean’s background in engineering has helped him optimize businesses while using his problem-solving skills to navigate tricky situations efficiently.