Common Payment Issues in iGaming: Solutions Guide

Mar 17, 2025

Fluid

Explore solutions to common payment challenges in iGaming, including fraud risks, delays, and regulatory compliance in Malta's market.

iGaming operators in Malta face ongoing payment challenges, from delays to fraud risks and strict regulations. But solutions exist. Here's what you need to know:

Key Challenges

  • Payment Delays: High transaction volumes and outdated systems slow down processes.

  • Limited Payment Methods: Regulatory and technical barriers frustrate players.

  • Fraud Risks: Credit card fraud and money laundering attempts are common.

  • Regulatory Compliance: Strict MGA rules require operators to separate player funds, enforce KYC, and follow AML laws.

Effective Solutions

  • AI Payment Systems: Automate processes, enable 24/7 multi-currency support, and reduce delays.

  • Fraud Detection: Machine learning identifies and blocks suspicious transactions in real-time.

  • Better User Experience: Mobile-friendly interfaces, diverse payment options, and instant AI support improve player satisfaction.

  • Compliance Tools: Automated checks ensure adherence to MGA and FIAU regulations.

Payment Method

Pros

Cons

Processing Time

Security

E-wallets

Instant, secure, no bank details

Fees, bonus restrictions

0-24 hours

Encryption, 2FA

Bank Transfers

High limits, trusted

Slow, manual verification

1-5 days

Bank-level security

Cryptocurrencies

Privacy, low fees

Volatility, €1,000 limit

10-60 minutes

Blockchain, wallet verification

To stay ahead, operators must adopt AI-driven systems, offer diverse payment options, and ensure full compliance with Malta's regulations. This approach balances security, speed, and player satisfaction, keeping the industry thriving.

Panel Discussion | Navigating iGaming Compliance: Key ...

Main Payment Issues in iGaming

The iGaming sector faces several challenges related to payments, impacting both operators and players. Addressing these issues is crucial for ensuring smooth operations within Malta's regulated market.

Payment Processing Delays

Delays in processing payments can disrupt operations significantly. These delays often stem from high transaction volumes, outdated systems, or stringent security checks.

"Speed is beneficial for both players and operators. A convenient payment gateway could improve operational efficiency." – Fortis Media

Payment Method Restrictions

Restrictions on payment methods can frustrate players and limit their engagement. These restrictions are often due to regulatory demands, technical constraints, or operator risk policies. Here's a quick breakdown:

Restriction Type

Impact

Regulatory

Limits available payment options and may extend verification times.

Technical

Slows processing and reduces the variety of supported methods.

Risk Policies

Leads to higher rates of declined transactions.

Security and Fraud Risks

Security concerns are a major challenge for iGaming operators. Common threats include bonus abuse, credit card fraud, and attempts at money laundering through high-volume transactions.

"Security is the cornerstone of gambling projects. The unfortunate fact is that, in terms of fraud, this industry is one of the riskiest." – Data40

With millions of attacks reported yearly, it's clear that robust security measures are essential to protect both players and operators.

Navigating Malta and EU Regulations

Operators based in Malta must comply with strict regulatory frameworks while ensuring efficient payment processes. Key areas of compliance include:

  • Keeping player funds separate from operational accounts

  • Enforcing thorough Know Your Customer (KYC) procedures

  • Monitoring Politically Exposed Persons (PEPs) regularly

  • Reporting suspicious transactions under Anti-Money Laundering (AML) laws

  • Following Malta Gaming Authority (MGA) payment guidelines

Next, we’ll explore specific strategies to address these payment challenges effectively.

How to Fix Common Payment Problems

AI technology is playing a crucial role in addressing payment challenges in the iGaming industry.

AI Payment Processing Systems

AI-powered payment systems are designed to speed up transactions and improve efficiency through smart routing and automation. Recent studies highlight the increasing influence of AI in streamlining payment processes.

Feature

Benefit

Automated Routing

Speeds up settlements by simplifying processes

24/7 Processing

Ensures transactions are handled round the clock

Multi-Currency Support

Easily manages international payments

Fraud Detection Systems

Machine learning algorithms add an extra layer of security by analysing transactions in real time and flagging unusual patterns. These systems can handle large transaction volumes without compromising performance. AI tools like these have shown to reduce operational strain while improving security. Enhanced security, in turn, contributes to a smoother payment experience.

Better Payment User Experience

AI doesn't just improve speed and security - it also helps create a better payment experience for users. A well-designed payment interface is key to keeping players engaged.

Areas to focus on include:

  • Mobile Optimisation: Ensure transactions are seamless across all devices.

  • Payment Options: Provide a variety of convenient payment methods.

  • User-Friendly Design: Offer clear, step-by-step instructions for ease of use.

  • Instant AI Support: Deliver quick help when users face issues.

Payment orchestration platforms can also reduce transaction failures by offering flexible routing and enhanced security. However, implementing these solutions in Malta requires careful alignment with local regulations to ensure compliance while improving payment systems.

Rules and Compliance Guide

Malta's iGaming Payment Rules

The Malta Gaming Authority (MGA) enforces strict regulations on payment processing within the iGaming sector. Operators are required to establish systems that address Money Laundering and Funding of Terrorism (ML/FT) risks while ensuring efficient payment operations. Below are the main regulatory requirements:

Requirement

Description

Oversight Body

Risk Assessment

Detailed evaluation of business risks

MGA & FIAU

Customer Policy

Documented customer acceptance procedures

MGA

MLRO Appointment

Designation of a qualified reporting officer

FIAU

AML Controls

Risk-based measures for prevention

MGA & FIAU

The Financial Intelligence Analysis Unit (FIAU) outlines these compliance requirements in its Implementing Procedures Part II, which are critical for retaining operational licences.

"The MGA has a vested interest to ensure that licences are issued or renewed only if it is reasonably satisfied that the applicant has the necessary policies, procedures and systems in place to effectively manage any ML/FT risks inherent within its business, and that all the persons involved in the applicant company are fit and proper persons." - Malta Gaming Authority

These rules require operators to establish efficient compliance systems to meet regulatory expectations.

Payment System Compliance

In line with the MGA's regulations, operators must ensure their payment systems are designed to meet compliance standards. This involves implementing detailed risk assessments, maintaining proper documentation, employing automated monitoring tools, and providing regular staff training.

AI-powered payment systems can simplify compliance tasks by:

  • Automating transaction checks

  • Identifying unusual patterns

  • Keeping accurate audit trails

  • Generating detailed compliance reports

To keep up with regulatory updates, operators are encouraged to subscribe to MGA and FIAU newsletters and attend their training sessions.

Payment Method Analysis

Evaluating payment methods is key to creating systems that balance efficiency with compliance requirements.

Pros and Cons of Payment Options

Payment Method

Advantages

Disadvantages

Processing Time

Security Features

E-wallets

Instant deposits, added security, no banking details shared

Platform fees, bonus restrictions, €150 CDD threshold

0-24 hours

Advanced encryption, fraud monitoring, 2FA

Bank Transfers

High deposit limits, bank-level security, trusted by users

Slower processing, manual verification, bank fees

1-5 business days

Bank verification, SEPA protection

Cryptocurrencies

Greater privacy, no intermediaries, lower fees

€1,000 monthly limit, price volatility, 30-day verification

10-60 minutes

Blockchain security, wallet verification

Payment System Setup Tips

  1. Layered Security Use AI-powered fraud detection to minimise false declines and protect revenue. This approach can help recover over 50% of potentially lost revenue.

  2. Streamline Payment Flows

    • Support transactions in multiple currencies

    • Automate reconciliation processes

    • Enable real-time monitoring

    • Set limits that comply with Malta’s rules: €150 CDD for fiat and €1,000 monthly for virtual currencies

  3. Stay Compliant with Regulations

    • Keep player funds separate from operational accounts

    • Allow players to set personal limits

    • Verify wallet ownership before accepting deposits

    • Work with licensed Virtual Financial Asset (VFA) providers

"Selecting the right payment method is crucial, combining security, convenience and speed." - MaltaToday

Using Multi-Armed Bandits (MAB) technology can optimise payment method selection by factoring in location, device type, and transaction history. This dynamic approach can improve conversion rates.

Conclusion

AI-driven payment systems are now reducing fraud by over 40% and recovering more than 50% of lost revenue.

As we've seen, AI is reshaping payment processes, with Contextual Multi-Armed Bandits (MAB) technology leading the way. By using real-time data to select the best payment methods, this technology boosts conversion rates while staying within Malta's regulatory framework.

To stay ahead, operators should focus on AI-powered fraud detection, real-time monitoring, offering diverse payment options, and automating compliance with MGA regulations. This combination ensures full compliance with Malta's strict MGA standards.

In Malta's iGaming sector, payments must balance player convenience with strong security measures. Advanced AI systems are key to improving fraud prevention and simplifying transactions. With recent enforcement actions by the MGA highlighting the risks of non-compliance, operators cannot afford to overlook these advancements.

FAQs

How does AI enhance payment speed and reliability in the iGaming sector?

AI-powered payment systems significantly enhance both the speed and reliability of transactions in the iGaming industry. By intelligently selecting the most suitable payment method for each transaction, these systems ensure faster processing times and higher success rates. This dynamic approach helps reduce delays and improves the overall user experience.

Additionally, AI automates repetitive payment tasks, reducing the risk of human error and lowering operational costs. It also strengthens fraud detection by identifying suspicious activity in real time, protecting both operators and players from potential risks. These advancements create a smoother, more secure payment journey tailored to the needs of the iGaming ecosystem.

How can iGaming operators improve payment security and prevent fraud effectively?

To ensure secure and fraud-free payment processes, iGaming operators should adopt a multi-layered approach. This includes using device intelligence, IP and email analysis, and digital footprinting to identify unusual activity. Enhanced verification processes, such as dynamic friction measures, are also crucial to balance security with user experience.

Additionally, leveraging AI-driven tools and machine learning algorithms can help detect patterns of fraudulent behaviour and reduce risks. Custom risk rules and real-time monitoring further enhance the ability to respond quickly to threats. By implementing these strategies, operators can build a safer and more trustworthy payment environment for their users.

What payment methods are allowed under Malta's iGaming regulations?

Malta's regulatory framework provides flexibility for licensed iGaming operators when it comes to payment methods. The Malta Gaming Authority (MGA) permits a wide range of payment solutions, including traditional options like bank transfers and credit cards, as well as modern methods like virtual financial assets (VFAs) and distributed ledger technology (DLT).

This approach ensures that players have access to secure and innovative payment options, while operators can adopt technologies that enhance user experience and transaction efficiency. Always ensure that the payment method you choose complies with the MGA's licensing standards and prioritises safety.

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© 2025 Fluidwave Technologies Ltd.
Company registration: HE45392611
Apostolou Andrea St, Hyper Tower
Office 101 • 4007 Limassol
Cyprus

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Easy flowing payments™

© 2025 Fluidwave Technologies Ltd.
Company registration: HE45392611
Apostolou Andrea St, Hyper Tower
Office 101 • 4007 Limassol
Cyprus

Made with ♥

Easy flowing payments™

© 2025 Fluidwave Technologies Ltd.
Company registration: HE45392611
Apostolou Andrea St, Hyper Tower
Office 101 • 4007 Limassol
Cyprus

Made with ♥