Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How FinTech is Shaping the Future of Online Casinos
Feb 21, 2023
Image: Freepik
The banking industry is changing rapidly. Fifty years ago, almost everyone was using cash for payments. Banks had a difficult time promoting credit/debit cards—people didn’t see cards as real money.
Fast forward to 2023 and only a small fraction of payments is done in cash. In the digital economy, no one uses cash anymore. You need a credit card, e-wallet, or crypto to deposit money at your favorite Canadian online casino.
Continue reading to discover how Fintech changed iGaming and how it continues to disrupt the sector.
Instant Deposits and Withdrawals
Instant deposits help casinos earn new customers who may otherwise have left for a different website. Think about it. When shopping online, you probably add items to the shopping cart before you decide how to pay for the items.
But if the payment process becomes cumbersome, you abandon your cart to shop at a different website. This is the same thing thousands of casino players experience. They may show an interest in joining a certain casino.
However, they will only deposit money if there’s a fast way to do so. Fintech makes it possible to fund your gambling account instantly. The best online casino operators work with an array of fast-payment providers, from credit cards to digital wallets.
You need a quick payment method to help you with both deposits and withdrawals. When you cash out money from a gambling site, it may take 1-7 days to get it. How fast you receive your money depends on your chosen banking option.
Improving Security and Trustworthiness
Everyone thinks about security when choosing an online casino. For starters, you don’t want to send your money to a scam website. Secondly, you want to know that your data is secure.
Luckily for you, governments are increasingly legalizing online gambling. In countries like Malta, the UK, and the US, every casino must secure its website and treat customers’ data securely.
FinTech companies also play a role in keeping you safe. The best companies work with trusted casinos only. We're talking about providers like PayPal, Google Pay, Skrill, and iDebit.
These payment methods do thorough background checks to keep their customers safe from scammers. Another way fintech startups protect you is by taking charge of your data.
Take PayPal as an example. It has a feature called OneTouch. If you activate this feature, PayPal will record your financial information securely so that you don’t have to reveal it to casinos out there.
Decentralizing Online Gambling
Bitcoin popularized decentralization. But what is it all about? Put simply, decentralizing finance means taking away power from centralized organizations and giving it to the people.
Bitcoin is built on a decentralized ledger of records called the blockchain. No single entity owns the blockchain. Instead, it’s governed by decentralized computer nodes that regularly verify transactions and keep records transparently.
The blockchain has borne all sorts of innovations for the iGaming sector, from slot machines to decentralized casinos. However, most online casinos focus on the payment benefits of crypto.
In other words, you can now deposit and withdraw money from a gambling site using bitcoin, Ethereum, or USDT. And you don't need to go through an intermediary for this to work.
If you have BTC in your bitcoin wallet, you can send the funds to your casino account directly. This lowers the fees and increases transactional time. There’s a caveat, though.
Blockchains charge fees for verifying transactions, meaning fees vary from one coin to another. Also, the payment speed in crypto depends on the blockchain network and how busy it is.
Mobile Banking
Mobile casinos exist only because you can also make payments through your smartphone. Without a digital wallet or credit card support on the iPhone, most people would still be using cubicle desktops to play online slots.
Interestingly, mobile payment apps are a relatively new technology. They exploded after the advent of the iPhone in 2007. These days, almost every smartphone owner has a mobile payment app.
If you don’t use digital wallets, you can use your debit card for casino payments conveniently. There’s also the option to use wire transfer or crypto. And you don’t necessarily need to install an app.
These days, most casino apps offer the option to use a web app. It works just like a regular app. The only difference is that you access it through a web browser and not a Play Store.
Play Now, Pay Later (Pay by phone)
Pay by Phone is one of the best things to have happened to online casinos. Picture this. You want to play a couple of online slots but have no money. So, you borrow your favorite mobile app for some money—Boku, Zimpler, and Zelle are the most popular options.
Boku looks at your creditworthiness. And if you qualify for an overdraft, you can receive $10 to $500 to gamble online. The mobile payment app will then add your “loan” to your monthly phone bill.
Although Pay by Phone casinos are cool, they’re hard to find. Not many payment apps offer the service. So, it might take time before we all can access the payment option.
No Account Casinos
Some fintech companies do a lot more than facilitate deposits and withdrawals. Sweden's Trustly has a service that saves you the need to create online casino accounts.
With Trustly, all you need is to connect your bank to your favorite online casino. Trustly will handle identity verification so that casinos don’t have to ask you for this information.
The e-wallet also facilitates deposits and withdrawals instantly. No need to log in to your account using an email. You tell Trustly how much to deposit and the company does the rest.
See: CPAs Are Seeing Fintech Innovation Across Many Canadian Provinces
Unfortunately, no registration casinos are available in a few countries only—Finland, Germany, and Sweden. Still, they’re proving popular with players. And that means Trustly will work with multiple countries to spread this service. Also, you can expect more e-wallets to introduce the service in the future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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