We’ve all heard about the meteoric rise of cryptocurrencies as of late and, increasingly, the various uses of digital currencies within the igaming industry.
According to Sean Mackay, CEO at CoinPayments, igaming operators that aren’t currently eyeing up the opportunities within the crypto space should be, and for several reasons.
He explained his view that cryptocurrency can offer somewhat of a welcome relief for operators that may face lengthy payment processing times and issues with payment acceptance.
He began: “Igaming operators need to shift their focus towards the crypto space for several reasons. The first reason is that cryptocurrencies provide faster, and more efficient payment processing compared to traditional methods.
“With cryptocurrencies, transactions can be settled almost instantly or within a few minutes, eliminating the lengthy processing times associated with traditional banking methods, as well as overcoming critical hurdles such as chargebacks and settlement delays faced by the igaming sector.
“Cryptocurrency payments also offer a quick and seamless payment experience which enhances the overall user experience for players.”
It’s all about security
The higher levels of security and privacy for transactions were pinpointed by Mackay as another reason why digital currencies can help drive further growth, offering a form of financial data protection for bettors and the operator alike. This, he believes, is the reason why “an increasing number of operators have chosen CoinPayments to integrate our cryptocurrency payment solution.”
Mackay continued: “Using cryptocurrencies offers several benefits in terms of transparency and security. Crypto transactions are recorded on a public ledger called the blockchain, providing a high level of transparency.
“Partners and bettors can easily verify and trace the movement of funds, ensuring that transactions are fair and transparent. This transparency can help build trust among the parties involved and reduce the risk of fraudulent activities.”
By using cryptographic algorithms and encryption, Mackay explained that digital currencies are “highly resistant to hacking and fraud”. By combining such algorithms with decentralised blockchain, it’s significantly more difficult for fraudsters to “maliciously manipulate or tamper with transaction records”.
“This decentralised nature enhances the security of funds and personal information, reducing the risk of data breaches or identity theft. With these aspects in mind, operators and users are therefore rest assured that payment safety is of utmost importance,” he added.
Protecting against volatility
One such concern that has previously been raised about the crypto space is the unpredictability – or volatility – of currencies. We all saw what happened when Elon Musk went on a Twitter tirade about Bitcoin.
But according to the CoinPayments CEO, there are measures which igaming operators can take to mitigate the risk of price fluctuations.
He said: “In terms of volatility, as we know, cryptocurrencies can be subject to price fluctuations. However, there are measures that can be taken to mitigate this risk and one of these is to offer stablecoins, which are cryptocurrencies pegged to a stable asset like a fiat currency.
“Stablecoins provide stability by maintaining a fixed value, reducing the impact of market volatility. So, by offering stablecoin options, the impact of volatility can be minimised, providing a more stable experience for partners and bettors.”
Unlike traditional fiat currencies, cryptocurrency has much more of a global reach – a factor that can be extremely beneficial for igaming companies looking to broaden their international reach.
He said: “Cryptocurrencies enable igaming operators to reach a broader global audience by tapping into an expanding market and attracting a new segment of players who prefer to use crypto. Traditional payment methods may have limitations and restrictions in certain regions, making it difficult for operators to provide a seamless payment experience for players worldwide.
“Cryptocurrencies, being decentralised and borderless, allow operators to overcome these barriers and cater to a larger customer base which can lead to increased customer acquisition and retention, while driving revenue growth for igaming operators.
“The world of igaming is evolving rapidly and crypto is playing a pivotal role in this transformation. Recognising the inherent compatibility between igaming and crypto, we find that operators are eagerly embracing digital payment solutions, so yes, this is very much the way forward when it comes to the payment space.”
Talk soon turned towards the future for the company, and the cryptocurrency space as a whole. Put simply, Mackay couldn’t predict exactly what will happen over the next few years – however he did express his confidence that we’re beginning to emerge from a “crypto winter”.
He concluded: “CoinPayments is well-positioned to capitalise on the growing demand for cryptocurrency payments. As more businesses and individuals embrace cryptocurrencies as a viable form of payment, we expect to see significant growth and expansion of our user base in the year ahead.
“Although we are in a crypto winter right now, things are slowly starting to heat up, so it’s business as usual here at CoinPayments.
“During the past few months, we have had our heads down building in the same way that crypto projects out there do during a crypto winter. In the coming months, there’s going to be some great releases of new features, new products, and even new use cases for crypto in general. We are hard at work making major improvements to our platform; more secure, more scalable, faster, and more features tailored towards both merchants and igaming businesses.
“The key takeaways here are that we have used the downtime in the market to focus on building. Later this year we plan to release a major update to our platform, making it faster, more scalable and more flexible.
“We have had a chance to speak directly with clients in the gaming space and we know what’s important to them in a crypto payments platform, and we are prioritising our feature releases accordingly.”