Payment methods are a hugely important part of existing online. We need ways to pay for the services and goods we buy online, to pay our bills, and to keep our various subscription services paid and active. Today, everyone has their favorite ways to pay online.
In the early years of making online payments, the options were seriously limited. People could use their debit or credit card, or go to the bank and schedule a wire transfer. We still use all of these methods, because they are secure and trusted. The biggest change to the original methods is that bank transfers can now be scheduled online, which is much more convenient.
In the last decade, new payment methods have been introduced and they’ve really shaken things up. Some of these methods are associated with established financial institutions, others are completely new companies. Others, like cryptocurrencies, aren’t even tied to traditional fiat currencies.
Online casinos are among the industries that have been quick to accept new alternative payment methods. As an international industry that is also always ready to incorporate new technologies, it makes sense that online casinos would be at the forefront of these new payment methods.
This article will examine how alternative payment methods are changing online transactions in online casinos. Then, it will discuss some of the key alternative payment methods that are having the biggest impact.
Faster processing
Bank transfers and credit/debit card payments are processed by their financial institutions, following long-established protocols and systems for processing payments. They’re also the busiest and most heavily used payment methods, which can lead to delays.
Alternative payment methods can implement payment processing systems that are better suited to new realities. They also reflect user expectations. People who are used to their payments to a company being processed instantly are understandably frustrated when payments to them can’t be processed at the same speed.
Online casinos that work with alternative payment methods are now developing ways to take advantage of faster modern processing times. One way has proved very popular among players – this is instant withdrawals. By instituting Know Your Customer (KYC) protocols that can be enacted before a withdrawal is made, the withdrawal on the casino’s end can be processed immediately.
Alternative currencies
Traditional payment methods have limits when it comes to switching currencies. Users are typically stuck using the currency that the account is in, or paying a substantial fee to transfer their funds into a different currency.
Many alternative payment methods, like payment apps such as Wise, make it simple to convert funds from one currency to another. Since many online casinos are active in multiple countries, being able to fund an account in different currencies is very useful.
Accessibility and convenience
Alternative payment methods can be incredibly convenient and accessible. Payment apps and e-wallets are usable from anywhere and many don’t require a bank account to open. This makes them an accessible option for people living in countries where the banking infrastructure isn’t well established.
Many alternative payment methods are regional. This makes them convenient for local users and also means that customer support can be more specialized. Being localized works well for online casinos, which can benefit from aiming their services at particular countries.
These payment methods are typically fully online as well. Users don’t need to have a card or anything physical to access their account. Instead, they can use their phone, an app or simply a code.
Security
Most alternative payment methods are not subject to the same vulnerabilities as traditional payment methods. One of the problems with having been in use for so long is that criminals have had the time to figure out all of the weaknesses and ways to exploit them. While bank transfers and credit/debit cards have plenty of protections in place for their users, fraud is still very common.
Alternative payment methods can be highly secure. Cryptocurrency, which functions on the blockchain, is one of the most secure payment methods in existence. Other payment apps and e-wallets have security measures like two-factor authentication in place.
With online casinos, alternative payment methods work well with the security measures that the casinos already use. These include SSL encryption and PGP protocols for communications.
Continue reading to learn about the alternative payment methods that are changing how online transactions are done in online casinos.
E-wallets and payment apps
E-wallets and payment apps are the most common alternative payment methods. They’re also the payment method with the most variety. PayPal is the original payment app, and since it was launched in the late 1990s, it has spawned multiple copycats. The newer payment apps are able to learn from PayPal’s two decades of experience to offer users the best tools for making online payments.
E-wallets linked with bank accounts are more secure than using a credit/debit card. They are also convenient because users can hold multiple cards in a single e-wallet.
Pay by phone
Pay by phone is one of the newest alternative payment methods. It has quickly become popular because of how convenient it is for users. With pay by phone, users can add their payments to their monthly phone bill and then pay that bill with their preferred payment method. This blends traditional and alternative payment methods for the best of both worlds.
Online casinos have been one of the industries to embrace pay by phone because they understand how it benefits players. A pay by phone bill casino lets users add their deposits to their monthly phone bill or to their pay as you go account.
Cryptocurrency
Cryptocurrency is the most unusual of the alternative payment methods. Unlike fiat currencies, cryptocurrencies aren’t tied to governmental regulations. New cryptocurrencies are being launched on a regular basis, which keeps the market moving.
Typically, standard online casinos accept a few cryptocurrencies. Dedicated crypto casinos specialize in blockchain games and accept dozens of cryptocurrencies.
