Global Payment Solutions: APMs and Credit Card Processing in iGaming

credit card processing iGaming


Global payments require customised solutions that cater to the unique payment landscape of each market. While credit card processing is an essential part of the payment system in the iGaming industry, local acquiring is a strategic advantage that significantly enhances the likelihood of transaction success by executing transactions in an environment familiar to the issuing bank and its participants.

The Dynamics of Credit Card Processing in iGaming

Players find it convenient and secure to use credit cards for transactions, which is why it is a popular payment option. However, the use of credit cards on a global scale has its challenges. Different regions have varying regulations and consumer preferences, affecting approval rates. Smart routing technologies have been developed to overcome these challenges. These systems use real-time data to redirect transactions to the acquirer with the highest chance of approval, improving both credit card processing speed and success rates in iGaming.

Diversity Beyond Credit Cards

Payment solutions in the global iGaming industry require a more nuanced approach than relying on credit cards. Payment methods are constantly evolving, and we need to adapt to these changes to authenticate and make payments more efficiently. Alternative Payment Methods (APMs) are used instead of international card brands such as Visa, Mastercard, and Amex and are known as local payment methods. By offering the right APMs, businesses can attract more customers, make it easier to convert, and keep their transaction costs low. These payment methods cater to the diverse preferences of players worldwide, from e-wallets like PayPal and Neteller to region-specific options. The key driver of customer demand for APMs is convenience. Players expect to make payments using a single app and have their transactions processed immediately.

Each region has unique payment method preferences, with digital wallets dominating in some areas while card usage prevails in others, according to the FIS Global Payment report.

As one of Brazil’s top iGaming markets, players often lack credit cards. In collaboration with Brazil’s Central Bank, Pix uses open banking regulations to enable direct bank payments.

Governments in the Middle East and North Africa are promoting the use of local card payment methods, which are gaining popularity among consumers. In Africa, mobile payments are the preferred mode of payment, with countries like Kenya seeing an adoption rate of up to 72%. The context is crucial, as only around 35% of the population in the region has a bank account.

Emerging markets tend to prefer solutions that are based on QR codes, as they are more accessible and cost-effective to implement. On the other hand, developed markets tend to favour faster payment methods such as “tap and go”, account-to-account transfers, and card-linked mobile solutions that align with global standards. It’s worth noting that most Alternative Payment Methods (APMs) do not offer chargeback mechanisms. However, using these payment methods can improve authorisation rates, allowing businesses to capture more revenue. Effective APM strategy requires expert help and a solid partnership with a reputable payment service provider, especially when managing payments across multiple countries.

Localisation and User Experience

In order to improve approval rates and player satisfaction, it is essential to support different payment methods, such as local e-wallets, prepaid cards, bank transfers, and mobile payments. Localising payment solutions can enhance acceptance rates and foster a seamless user experience. This is particularly important for retaining players and catering to their unique needs in different markets.

Spreading Risk Across Multiple Acquirers

When it comes to payment processing, a key strategy is to distribute risk across multiple acquirers. Different acquirers have higher success rates in different regions. By using multiple acquirers, merchants can avoid relying on a single one and take advantage of smart transaction routing.

To ensure a smooth payment experience for their customers, merchants need to offer local payment methods and currencies that are familiar to them. However, these can vary from country to country. To address this, operators can partner with local acquirers who have deep knowledge of the local ecosystem. This not only helps merchants offer the preferred payment methods but also enhances the overall payment journey.

The iGaming industry operates in a highly regulated environment where payment methods must comply with strict legal and security standards. These standards include PCI DSS certification, PSD2 in Europe, and SCTL in Japan, among others. Frequent regulation updates, such as Know Your Customer (KYC) requirements or Anti-Money Laundering  (AML) guidelines, require continuous monitoring and adjustment of payment processes. To improve acceptance rates and mitigate risks associated with relying on a single payment provider, it is advisable to use multiple acquirers tailored to specific regions.

Streamlining iGaming Transactions with Crypto

Cryptocurrency payments, powered by blockchain technology, transform how transactions are carried out in the iGaming industry. Cryptocurrencies provide a decentralised, secure, and transparent payment system that addresses many challenges online platforms face. Crypto payments have no geographical limitations, making them an ideal solution for the global iGaming market. With crypto payments, online casino platforms can effortlessly reach players worldwide without the need for currency conversion or cross-border transaction fees. There are now opportunities to accept payment-by-crypto solutions that don’t require operators to hold crypto coins. This is achieved by exchanging them for fiat currency at the time of deposit. This global accessibility paves the way for new opportunities for growth and expansion.

Adapting to Market Dynamics

With iGaming’s surging popularity worldwide, the future of payment solutions lies in adapting to the changing landscape. Market dynamics, regulatory shifts, and technological innovations will keep shaping the industry, and operators must take a proactive approach to keep up. To achieve this, operators should adopt a hybrid approach that combines the reliability of credit card processing with the diversity and flexibility of alternative payment methods.

PaymentFinder can help you leverage top-level connections and benefit from providers with high entry standards that you may not be able to reach or collaborate with on your own. Think of us as an extension of your business, guiding you in navigating and succeeding in the industry.


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