For iGaming businesses, expanding globally is not just an opportunity, but a complex challenge. In this article, we address the key considerations for taking iGaming operations across borders, focusing on regulatory compliance, the role of local acquiring in a successful expansion strategy, and the importance of alternative payment methods (APMs) for maximum customer retention.
1. Navigating regulatory complexities
For iGaming businesses, understanding the regulatory landscape in the markets they wish to expand into is crucial. This task is complicated by the fact that each country, and sometimes regions within countries, have their unique regulatory frameworks. Brazil, for instance, recently moved towards a regulated iGaming environment, establishing specific guidelines for online betting and gaming operators. The introduction of specific iGaming norms, including licensing requirements, advertising rules and new tax liabilities, reflects a significant shift from the previously ambiguous stance. When it comes to payment partnerships, operators need to make sure their PSP maintains an ethical and fully compliant approach to business onboarding and payment processing.
Brazil’s approach to iGaming regulation is just one piece of a global puzzle. Take Europe and the United States, for example. Unlike the European market, where regulatory frameworks like the GDPR and AMLD5 provide a somewhat standardized compliance framework, US-based operators face a patchwork of regulations, with states like New Jersey and Pennsylvania having their own distinct iGaming laws. This complexity demands that iGaming operators stay informed about current regulations and anticipate potential changes. It requires a combination of legal expertise and agile payment systems capable of quickly adapting to new regulatory requirements.
2. Local acquiring is key to growing globally
The saying “think global, act local” is particularly apt for iGaming payment processing. For operators targeting global markets, leveraging a payment provider with the most extensive acquiring coverage is crucial. This significantly reduces currency conversion discrepancies and cross-border fees, as well as enhances authorization rates which have a direct impact on the operators’ bottom line.
Having strong acquirer redundancy in high-value regions is an important factor when choosing a payment processor. Operators should prioritize collaborations that foster an open ecosystem and facilitate connections to multiple local acquirers as part of a single integration. This approach will not only maintain transaction continuity but also maximize approvals, regardless of the player’s location.
3. The strategic role of Alternative Payment Methods (APMs)
Alternative Payment Methods (APMs) cater to a broad spectrum of user preferences, vital for international market penetration and driving new revenue. Incorporating APMs into an iGaming platform requires a balance between user experience, security, and compliance. Efficient integration ensures that the user journey from pay-in to payout is seamless, reducing friction and building trust. For instance, an iGaming platform that seamlessly integrates Sofort for German users or iDEAL for Dutch customers directly caters to their preferred banking methods, enhancing user engagement.
Payouts are especially critical in iGaming, where retention hinges on the promptness and reliability of accessing winnings. Instant push-to-card solutions, including Visa Direct and Mastercard Send, address this need for immediacy, providing swift access to funds. Additionally, real-time payment systems via bank rails, offer immediate fund transfers, adding a layer of convenience and security for customers. For example, Instant Bank Transfer (IBT), a unique Nuvei solution for the US market, offers one-click withdrawals with seamless verification upon login into online banking. Similarly, Australia’s New Payments Platform (NPP) facilitates frictionless and secure real-time transfers for domestic players.
By offering advanced payout options used in their target markets, operators not only meet the instant gratification needs of players but also reinforce the platform’s reputation for efficiency and reliability.
Creating a holistic iGaming expansion strategy
Successfully expanding into the international iGaming market requires a well-rounded strategy encompassing regulatory compliance, efficient local card acquiring, and the strategic implementation of diverse APMs for both pay-ins and payouts. By collaborating with the right payment technology partner, iGaming businesses can efficiently address these key aspects, ensuring a seamless, compliant, and customer-centric experience to players in new markets.
Joining ICE in London this February? Meet us at booth N5-430 to discover how our two decades of expertise in iGaming payments can transform your iGaming business’ revenue strategy.