The online gaming market is one of the fastest-growing enterprises all over the masses. Every day, millions of users are involved in some kind of online gaming. These enterprises are expected to continue their growth in the upcoming year also. It is expected that it will reach around $32 million by 2025.
As this enterprise is growing continuously, it is a good place to invest and gain profits. The one who is already in this industry can grow their user base as a result of the market expansion. But, to remain relevant and competitive, you as a merchant concentrate on constantly enhancing every part of your services. A key step in this process is selecting a gaming payment gateway that provides quick and easy payments without interfering with the gaming experience.
Online gaming industries need the best fintech service provider for international transactions. But, having the best gaming payment gateway is not an easy task. As online gaming industries are considered a high-risk business by most of the fintech service providers and banks so it is very challenging to find the best payment gateway.
Here, will discuss in deep what challenges as a merchant you has to face while having the best fintech service provider.
What is a gaming payment gateway?
As its name indicate, it is a payment gateway for the gaming industry. To make it more clear, first, try to understand what is a payment gateway. A payment gateway is the latest technology solution for the secure processing of electronic transactions. It acts as a bridge between the merchant and the payment processing parties.
In the same way, a gaming payment gateway is an activity that involves betting money in exchange for the possibility to win additional money. Some examples of online gaming are – playing lotteries, casino games, card games, etc. Most of the bank and fintech service providers view this enterprise as a high-risk sector.
Online gaming is one of the largest markets globally but regulation is the main growth barrier for this industry. Each country has its specific laws regarding gaming, and companies providing such services have to comply with the local laws to enter the new marketplace.
What challenges merchant has to face for the best service provider?
As you know that the gaming industry is considered a high-risk business, and it is quite challenging for the merchant to get the fintech service providers. If you are planning to establish a gaming platform, you ought to keep these points in your mind and start working on them now. Here, will discuss some of the challenges, gaming merchant has to face –
Having a merchant account –
As you know that gaming industry is considered a high-risk industry, so it is not easy for the merchant to get a merchant account. Most of the acquiring bank and fintech service provider does not accept the application form to gaming industries.
But, still, to run your gaming enterprise successfully, you need a payment gateway and a merchant account so that you can accept the fund from players and pay them rewards or gifts. For this, it is essential for you and your enterprises to meet all the regulations and has the correct license.
As a merchant, you ought to arrange all the documents properly. Also, you have to prove that you are a trustworthy business owner with a clear history. Always go with the payment service provider who has experience in dealing with the online gaming industry to increase the chance of getting approved.
Choosing the various payment methods –
It is quite challenging for any merchant to provide all the payment options on their gaming sites. In today’s life, everyone like options. If a player does not find their preferred payment option they can easily switch to some other sites. So, the merchant needs to offer the best possible solution to their customers.
As you know, most customers prefer credit cards to make payments but when it comes to the gaming industry they hesitate because they don’t want to show in their bank statements. On the other side, players generally prefer bank cards, digital wallets, net banking, or even cryptocurrency also.
As a merchant, you have to do lots of research to figure out the player’s preferable payment mode according to the geographies.
Handling both payments and payouts –
It is quite challenging for any merchant to accept the fund and make money transfer in various ways, ensuring high conversion and speeds. So, as a merchant, you have to look for a payment service provider that provides equivalently robust capabilities for incoming as well as outgoing transactions.
Chargebacks –
The gaming industry has to suffer from high chargebacks and refunds. As a merchant, you ought to know that if your chargeback exceeds more than 1%, your fintech service provider will block your merchant account without notifying you.
So, to keep the chargeback and fraud rate low, you have to look for a service provider that offers tech-savvy fraud detection and prevention tools, anti-chargeback tools, etc. Also, you have to focus on making the easy payment process steps for your players.
NOTE – Full refunds are a better option as compared to the chargebacks because full refunds will cost you less than the chargebacks.
Unfavorable conditions –
This is one of the most common challenges that not only the gaming industry has to face but all the high-risk businesses have to face it. Due to the high risk in nature, they have to pay higher fees for the fintech service provider.
As you know, high-risk business frequently experiences fraud, so-called friendly fraud, while also having to prove that it is not itself a victim of fraud.
Gateways and processors are more likely to be suspicious of online gaming with a high turnover rate due to the difficulty of monitoring large volumes. Furthermore, it should go without saying that the complexity of worldwide regulatory standards and their stringency make compliance challenging for online gaming.
Why PayCly is right for you?
By working with us “PayCly” you can get the best solution for all the challenges which we discuss above. PayCly also offers you the best possible solution that can easily fit your gaming business requirements. Let’s check the benefits of using Paycly.
• It is one of the leading fintech service providers whose services are available worldwide.
• It allows the merchant to accept payment in various currencies. Also, the foreign player can make the payment in their currency without any conversion fees.
• It offers various payment modes such as credit/debit cards, bank transfers, e-wallets, net banking, etc.
• It also allows accepting funds made via cryptocurrency.
• Integration is done in a hassle-free manner without any extra charges.
• It offers invoice solutions.
• This service provider is complying with the PCI-DSS level 1 compliance which helps to protect your and your player’s data safe and secure.
• It also offers many high-technology security service tools such as anti-fraud, anti-chargebacks tools, etc.
Final Thoughts –
The online gaming industry is considered a high-risk industry, and it is quite challenging to get a suitable fintech service provider. As an online gaming merchant, you have to face many difficulties like –
• obtaining a merchant accounts
• high-chargeback rates
• unfavorable conditions
• choosing the payment mode
• handling both payments and payouts
But with a suitable high-risk payment gateway, it becomes easy for you.
We recommend you choose PayCly as your fintech service provider for your gaming industries. PayCly has lots of experience in dealing with the gaming industries so it completely understands your business need. We simplify the payment experience for your online gaming industry by offering you the best cross-the-border support in the development of payment gateways.
We have a clear and simple pricing structure without any hidden charges. Our customer support team quickly responds and gives satisfied solutions. To know more details, you can directly CONTACT US.