PXP Financial recently made good on its plan for expansion in the US market by entering into a partnership with BetMGM. PXP Financial is one of the leading providers of global acquiring, payment, fraud, and data analysis services in the world. BetMGM is also quite accomplished as it currently stands as one of the most recognizable and best-reviewed gaming operators available.
As such, this partnership will definitely help both parties scale. PXP Financial will provide a high end all in one payment system and service to BetMGM. BetMGM will utilize PXP’s single API integration to give their customers across the country an array of alternative payment and card solutions.
Because it’s an all in one solution, BetMGM will not have to invest in multiple integrations as they continue to expand their offerings across the country. Not only will this make things cheaper for the gaming operator, but it will also go a long way in helping to manage the payment process easier. BetMGM has already started using PXP’s system across 7 states including New Jersey, Indiana, Pennsylvania, Michigan, Colorado, Tennessee, and West Virginia.
In 2006, Congress dealt the iGaming industry a massive blow when it sanctioned legislation compelling US banks and credit card companies to block any electronic transactions to online gambling businesses with immediate effect. To make sure that there was compliance, US banks and credit card companies were also threatened with serious financial penalties and even jail time if implicated under this law.
Because of this bill, the use of checks to fund any online gambling accounts is also prohibited. This policing of financial institutions has brought a whole host of issues that would have easily been avoided. That’s why payment systems and services such as the ones provided by PXP Financial are important.
What’s the state of modern betting payment solutions today?
Online gambling or gambling of any kind for that matter, only makes sense if the punters can conveniently transact with the operators when they need to. Payment solutions have come a long way since 2006 with more and more operators opting to adopt digital payment systems.
Experts predict that by 2021, online gambling will generate more than $1 trillion. Part of this success will be attributed to the array of payment and withdrawal systems that gamblers have to choose from today. So what are some of the most popular banking solutions used by punters today?
Digital wallets are by far the most commonly used payment solutions today and it is easy to see why. Online e-wallets have become popular for gamblers because traditional banks and wire transfers aren’t nearly as efficient and fast as e-wallets.
Traditional financial institutions require a lot of checks between the banks and casinos so these baking systems will never catch up to the speed and convenience offered by e-wallet providers like PayPal and Skrill. Plus, e-wallets are easy to set up and are low cost. More importantly, they offer a level of privacy that traditional banking systems don’t. For punters who prefer secrecy above all else, e-wallets are a palpable choice.
With e-wallets, you don’t have to submit any personal banking details to your online operator of choice. The number of e-wallet services available has increased dramatically over the last couple of years, giving gamblers more variety than ever. Casinos are increasingly pushing e-wallet usage to their customers because it encourages users to keep their cash in the system for as long as possible, further helping to drive growth for the casino operators.
Credit and debit cards are also a popular choice
Even as e-wallet services blow up in popularity, credit and debit cards are still very preferred for punters. That’s because most people already have a debit or credit card by default so it makes sense to rely on it for all gambling transactions.
Card payments are also quite uncomplicated, which is a plus for the regular punter. Almost every retail sportsbook and casino accepts credit card transactions with Visa and MasterCard being top choices for punters.
We are living in the age of cryptocurrency
Gambling operators are now considering offering gamblers cryptocurrency as a transaction option. Soon, operators will allow cryptocurrency transactions that operate on Blockchain Technology such as Bitcoin, Ethereum, and others.
Cryptocurrencies are not only convenient and safe, but they are also fast, which is why their use is growing. Their biggest selling point though is the anonymity offered by these payment systems. Digital currencies such as Bitcoin do not leave any traces of one’s transactions, which is a huge plus for gamblers looking to keep their habits under wraps.
However, for cryptocurrencies to be used for gambling transactions, support from the banking and financial institutions is needed. Operators themselves need to do everything possible to increase cryptocurrency confidence and trust for its consumers. Several online operators already support cryptocurrency use.
Today’s enhanced technological capability and innovations are rapidly transforming the gaming landscape and operators such as BetMGM are doing all they can to catch up. Now more than ever, gamblers are open to embracing multiple new products. This is evidenced by emerging products such as VR, e-sports wagering, skins betting, and social games that are blurring the boundaries between gaming, gambling, and immersive online experiences.
If what we have going today is evidence of what’s to come, then operators and the gamblers themselves have a lot to look forward to in these next coming years. The speed with which these new products are entering the market signals a need for more financial systems and services.
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