The gaming industry has witnessed a lot of disruption over the years. The sector has evolved much more and continues evolving with the introduction of advanced technologies. In a Newzoo gaming report, the gaming industry was estimated to worth US$152.1 billion in 2019. Now the entry of FinTech, which has appeared recently, is set to further transform the gaming sector. As online gaming typically requires financial transactions, the role fintech plays becomes significant, ensuring payment processes in a safe and secure manner.
FinTech (Financial Technology) generally refers to a business that uses technology to enhance user experience with their financial transactions. There are various kinds of online gaming, including online casino video games which are extremely gaining traction right now, require to have the choice to be concerned with fintech and the alternatives that facilitate transactions. The rapid growth of the gaming industry is majorly driven by the penetration of mobile gaming devices and the vast availability of internet connectivity. Innovations in the fintech space also help improve the sector for players and game developers.
Prior to fintech innovations, online games were entirely dependent on credit cards and major payment systems, as well as accounts and ATMs. These were relatively complex and inconvenient. With the introduction of prepaid and credit cards and new payment solutions now has transformed the gaming industry, allowing gamers to enjoy premium and freemium games. Payment services like Amazon Payments, Google Checkout, Dwolla, Stripe, and others make it easy to make purchases associated with games. Even, the development of online wallets that can be linked to bank accounts also makes the purchases a lot easier.
With the growing usage of mobile phones, mobile payment systems are growing at a significant pace as big tech companies have found this domain for their business profits. In this way, mobile payment systems such as Apple Pay, Samsung Pay, and WeChat, among others allow mobile gamers to use monetary quickly and play and enjoy their favorite games.
Generally, fintech has designed all sorts of apps that foster average people to save money at a higher rate.
FinTech and Gambling Industry
Fintech has brought considerable transformations in the gambling industry. Major payment gateways such as PayPal allow online casino gaming enthusiasts to stay private with their bank details instead of sharing their details with a third party. This kind of payment system also enables gamers to see their deposits straight away without having to wait for any processing time. Online casino is a huge market for the banking industry as it boasts hundreds of thousands of transactions every single day. When it comes to making transactions, online casino customers are majorly choosing e-wallet instead of traditional banking or wire transfer.
Despite the high popularity of conventional banking processes around the world, online casinos are turning towards fintech due to the significantly higher levels of checks between banks and casinos and the sheer volume of inward and outward transactions. This process generally takes between two and three days to go from request to arrival in a user’s bank account.
In a crux, fintech has the potential to transform the gaming industry at large as it buttresses payment processes and augments the number of users accessing the gaming sites.