Although cryptocurrencies have been around for quite a while, it is only recently that they have begun a massive breakthrough across a range of different industries. From ecommerce to travel, jewelry, digital entertainment, and more, merchants in all industries are experiencing demand to accept crypto payments in addition to card payments.
Online gaming, virtual sports, and online casinos are no different; simply because of the convenience and safety crypto merchants offer. However, that is not to say that this is the extent of benefits it offers. There have been numerous surveys conducted in the past few years, and most players and developers have stated that blockchain makes their game more secure.
In this article, we will take a closer look at the benefits offered by crypto payments for online gaming and the gambling industry and why having a crypto merchant can prove to be a lucrative venture for developers.
Online gaming is a huge industry. In 2021, more than 2.8 billion people played games online on through mobile devices. As cryptocurrency becomes more and more popular, gamers are constantly asking for blockchain integration into games and enable blockchain trading on gaming platforms. This isn’t just limited to first-person shooters (FPS) or massively multiplayer online games (MMO) but extends to real-time strategy games (RTS) and multi-user dungeons (MUD) as well.
Because of the decentralized nature of blockchain, it is becoming increasingly popular in places where privacy and anonymity are valued above all else. The world of online casinos and gambling tables across the globe are seeing an influx of crypto merchant accounts because of this, raising the stakes for gambling even further.
Bitcoin, Monero, Dogecoin, and Ethereum are some of the most popular cryptocurrencies currently used in the online gambling sector and sports betting platforms. Their benefits extend to casino owners and players themselves, which is why the demand for crypto merchants has also increased.
Now that we know crypto merchants are becoming more popular, let’s look at why they are being preferred so much.
Crypto eliminates FX conversion from one fiat currency to another.
Gaming and online gambling sites have a player base extending to different corners of the world. Apart from eliminating currency conversion exchange fees, crypto processing is fast.
With cryptocurrency payments, the transaction is completed in 3-5 seconds on average, and customers can continue playing with little interruption.
Gamers and gamblers often prefer keeping their activities private. When it comes to crypto, there is no need for players to disclose any of their personal details, not even their bank account information.
All they need is a username and password to play and a completely anonymous wallet to pay.
Chargeback or ‘friendly fraud’ is when a buyer makes a payment through their credit or debit card, receives the item from you, and then instead of calling you, calls the issuer and reports it as a fraudulent transaction for a refund. In many cases, banks refund the amount, meaning you just sold merchandise for free.
Crypto payments eliminate this risk since once the transaction has taken place, it cannot be reversed, except with the approval of the merchants. As a merchant accepting crypto, you have the final say here about each refund.
There are numerous benefits and cashback offers that you can offer your customers for using cryptocurrency as a payment method. Many gamblers and developers offer gamers a chance to spend a specific amount in their store, i.e., make a bulk transaction.
That transaction will then entitle them to get a certain percentage of the spent amount back either in the form of cryptocurrency, free coins, or referral tokens. On the other hand, you get to recoup the amount by farming or staking your currency, increasing your profits further.
Blockchains are known for their security and impossibility to be manipulated. And since every transaction is end-to-end (there can’t be any third party involved), there is no risk involved in your payment being hijacked. Every transaction is encrypted and easily monitored, whether your customers are making a trade among themselves or making a purchase.
In gambling, this also means that every play and stake is between you and the gamer alone, thanks to high-risk merchant accounts. A unique license is used to randomize the play, which leads to provably fair games. There is no risk of manipulation, identity theft, fake payments, or another type of fraud since every transaction is licensed.
Cryptocurrency is a relatively new concept, which means that by implementing merchant accounts into your casino or game, you are attracting tech-savvy players who aren’t shy about spending online.
The list above isn’t exclusive, and there is a range of other benefits that the gaming and gambling industry can boast in favor of crypto payments. Considering the change that’s coming in almost every industry, we might be seeing a rapid increase in the number of crypto holders.
Companies, particularly gaming and gambling ones, can benefit significantly from crypto merchants. If you would like to learn more about the topic or are ready to implement a merchant into your platform, sign up for our demo today! We’d love to help you realize your full potential.