In response to the growth of the sports betting industry, sportsbooks are adopting a number of payment innovations in order to meet the growing expectations of players. “In addition to traditional payment options, such as credit cards and bank transfers, operators are implementing modern and technologically advanced solutions such as digital wallets, payments through prepaid cards and an increasingly continuous search for transaction security,” says Leonardo Baptista, CEO and co-founder of Pay4Fun, the largest payment institution operating in the entertainment and sports betting segment.
With this in mind, the expert lists the main payment trends that should be consolidated in bookmakers. They are:
Focus on security and regulatory compliance
The security of financial transactions has become a priority for bettors globally. Betting operators are investing in advanced security systems, such as two-factor authentication and data encryption, to protect users' financial information.
Additionally, regulatory compliance plays an important role, with government authorities establishing strict guidelines to ensure the integrity of the industry and protect players. This includes obtaining gaming licenses and permits in each country where they wish to operate in order to comply with all local laws and regulations.
Integration with digital wallets
Digital wallets are becoming a rising trend in the global sports betting market, offering players fast and convenient payment methods. The modality offers a wider range of payment options that allow you to deposit and withdraw funds from their betting accounts. This facility also allows players to choose the option that best suits their needs and avoid barriers related to specific payment systems in each country.
By using a digital wallet, players do not need to directly provide their bank or credit card details to bookmakers, reducing the risk of exposure to potential fraud or data breaches. This helps to increase players' trust in the betting platform and promotes a safer and more secure payment experience.
Payments through industry-specific e-wallets
To keep up with the market trend, most bookmakers are including e-wallets options that allow users to deposit, withdraw and manage funds conveniently, eliminating the need for redirects to other platforms or external payment systems. Some e-wallets even offer special promotions, bonuses or exclusive cashbacks, making it more attractive for users.
For the executive, integration with sector-specific e-wallets can offer additional benefits, such as greater security and privacy in transactions. “These e-wallets are focused on meeting the security requirements of the betting industry, ensuring that transactions are protected and that players' personal and financial information is kept confidential,” he explains.
Use of prepaid cards
Prepaid cards, such as debit cards or virtual vouchers, are another popular payment option gaining ground in the segment. Bookmakers can offer industry-specific prepaid cards, allowing users to purchase betting credits and use them easily and securely.
One of the advantages of prepaid cards is that they offer an anonymous and discreet form of payment. When using a prepaid card, players do not need to provide sensitive personal or financial information to bookmakers, reinforcing privacy and protection for players.
International bank transfers
With the expansion of sports betting, many players are opting for international transactions. Bookmakers are facilitating bank transfers of this type, offering options such as transfers that allow players to deposit and withdraw funds from different parts of the world.
Although international bank transfers can take a little longer to process compared to other faster payment methods, many players value the security and reliability of this method. International bank transfers are protected by robust banking security measures, giving players peace of mind about protecting their financial information.
“With these trends on the rise, the future of the sports betting market promises an innovative and efficient payment experience for bettors around the world. Agile transactions, increased privacy and a wide variety of payment options are on the radar to ensure that the power of payment is in the hands of bettors,” points out Baptista.
Payments by electronic vouchers
The growing trend of electronic voucher payments is revolutionizing the sports betting landscape. With the possibility of purchasing electronic vouchers online or at authorized physical points, players receive exclusive codes that can be redeemed at bookmakers.
This widely accepted payment method offers users the freedom to deposit funds without the need to share personal or banking information, thus ensuring a worry-free betting experience. E-vouchers are becoming a popular choice among players, providing convenience and security in a constantly evolving industry.
Instant payment systems
The sports betting industry is following the trend of instant payment systems, offering players an agile and efficient way to carry out transactions. These systems allow players to deposit and withdraw funds in real time without the need to wait for long processing times.
These systems guarantee security and reliability, using advanced encryption technologies to protect players' financial information and are expected to gain strength in the segment.
Founded in 2018, Pay4Fun is the first payment institution, operating in the sports betting sector, to receive authorization from the Central Bank of Brazil. Operating with more than 400 integrated websites in the entertainment segment, the company reached the mark of R$2.44 billion (US$ 501m) in financial transactions in 2022.
The company was considered the Best Payment Method for Latin America in the awards promoted by SAGSE 2022 and chosen as the Best Payment Method at the Brazilian iGaming Awards. In 2023, the company won the RA 1,000 seal, from ‘Reclame Aqui’, and 3rd position as the best financial service company to work for in GPTW. To find out more about the company, visit its website or connect on Linkedin.
Source: GMB
