Cross-Platform Payments in iGaming: Key Challenges

Struggling with failed payments or slow deposits while gaming? You're not alone.

Here’s what you need to know:

• 46% of players value easy payments as much as bonuses.

• 52% have faced payment declines when signing up for new apps.

• 33% cite long deposit processes as their top frustration.

Why does this matter? Complex payment systems cost iGaming operators millions in lost revenue and player trust. From handling device-specific issues to navigating local regulations, the challenges are significant.

The solution? Unified payment systems, AI-driven fraud detection, and localised payment methods. These tools simplify transactions, improve security, and keep players coming back.

Ready to learn why seamless payments are essential for iGaming success? Let’s dive in.

Jake Dovey: Bridging the Payments Innovation Gap - NEXT.io Podcast

Main Challenges in Cross-Platform Payments

Cross-platform payments come with a host of challenges - technical hurdles, regulatory complexities, and localisation issues - all of which can impact user experience, conversion rates, and customer retention.

Device-Specific Payment Integration Problems

One of the biggest hurdles in cross-platform payments is ensuring seamless integration across devices. Different screen sizes - whether desktop, tablet, or mobile - can create usability issues. For instance, a payment form that works well on a desktop might feel cramped or awkward on a smaller mobile screen, leading to abandoned transactions.

Operating systems add another layer of complexity. iOS and Android each have unique ways of handling payment processes, requiring tailored integration strategies. To make matters worse, inconsistent APIs across platforms can complicate development further. For iGaming operators, especially those without large in-house IT teams, this becomes a daunting task. They must juggle multiple technical standards while striving to deliver a consistent user experience across all platforms.

But the challenge isn’t just about functionality - it’s about uniformity. Payments need to work seamlessly and look identical on every device, adding pressure to meet both technical and user experience standards. And as if that’s not enough, operators must also tackle the varied regulatory requirements that come with operating in different regions.

Regulatory Compliance Across Different Jurisdictions

The regulatory landscape is a maze, especially for iGaming operators managing cross-platform payments. Each jurisdiction has its own set of laws and requirements, making compliance a significant challenge. For example, the European Union lacks a unified regulatory framework for online gaming and betting, leaving member states to enforce their own rules. This patchwork of regulations can be a nightmare for operators serving players across multiple regions.

Key compliance areas like KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations vary widely by jurisdiction, forcing operators to customise their verification processes for each market. Some countries even mandate that customer data be stored locally, adding another layer of complexity. Non-compliance isn’t just a risk - it’s an expensive mistake. In 2024, the global gambling industry faced financial penalties totalling £67,097,966 (€86.2 million). High-profile cases highlight the stakes: Gamesys Operations Limited was fined £6 million (€7.6 million) by the UK Gambling Commission for social responsibility and AML failures, while Gammix Limited incurred a record-breaking €19.7 million fine from the Dutch Gaming Authority for unlicensed operations.

Currency and Localisation Challenges

Handling multiple currencies across platforms is far more complicated than simple exchange rate calculations. Fluctuating rates mean operators must decide whether to absorb the cost or pass it on to players. Beyond conversion, there are ongoing challenges like secure payment processing and ensuring compliance with local regulations.

Localisation adds another layer of difficulty. This isn’t just about translating languages - it’s about adapting payment options, currency displays, and even formatting. For example, in Malta, proper currency formatting follows specific standards:

Operators must also cater to local payment preferences. While traditional credit and debit cards remain dominant, demand for alternative payment methods is growing. Players in different regions expect payment options that align with their habits and practices. Dynamic currency conversion, while convenient, can create transparency issues as fees and rates often vary by platform.

These localisation challenges become particularly pronounced in emerging markets. Take Africa, for instance - South Africa’s online casino market is booming, with Gross Gambling Revenue hitting €2.5 billion in 2023. Markets like this demand a tailored approach to meet local expectations while navigating the complexities of cross-platform payments.

Risks in Cross-Platform Payment Systems

Handling payments across multiple platforms brings a host of challenges that can jeopardise both player trust and operator revenue. Without unified security measures, these systems become vulnerable, creating opportunities for fraudsters to exploit weaknesses. This highlights the importance of implementing strong, integrated solutions across all platforms.

Fraud Risks and Security Issues

Fraud in cross-platform payment systems is becoming more sophisticated and harder to combat. Fraud rates are climbing by 30% annually, with the gaming sector in the United States leading the way - recording the highest rate of suspected digital fraud at 10.9%. Between 2019 and 2021, digital fraud in the iGaming industry surged by 68.6%.

Operators are losing up to 15% of their iGaming revenue to promo abuse, while chargebacks are even costlier. For every €100 in chargebacks, operators face a total cost of €207 when factoring in fees and refunds. These financial losses don’t just affect short-term revenue; they also erode player trust and threaten long-term business sustainability.

Fraudsters are employing tactics like multi-accounting, bonus abuse, and payment fraud, often using tools like VPNs and AI to slip past detection systems.

When fraud occurs, the damage to player trust is swift. A staggering 78% of consumers state they would abandon a brand following an account takeover. Issues like compromised account security, financial fraud, and unfair gameplay further tarnish a platform’s reputation.

Disparate fraud prevention measures across platforms only make matters worse. Different security protocols for desktop and mobile environments create exploitable gaps, making these systems even more vulnerable to attacks.

Technical Failures in Payment Session Management

Fraud isn’t the only risk in cross-platform payment systems - technical issues can also wreak havoc. Switching devices mid-transaction often disrupts session continuity, exposing tokens and creating security risks. These disruptions not only impede payments but also frustrate users.

For iGaming operators, the stakes are high. If a payment fails during a transaction, 62% of customers are unlikely to return. For instance, a payment started on a mobile device might fail when continued on a desktop, due to mismatched API implementations or security protocols. This kind of friction discourages players from completing their purchases.

Outages in multi-processor environments further highlight the risks. Uneven service availability can lead to significant disruptions.

"Things will always go wrong: it's a question of when, not if." – Dafydd Vaughan, CTO at Public Digital

Effective session management is essential. A single payment retry can recover up to 32% of failed transactions. However, unresolved failures often result in bad debt, which ranges from 16% to 20% for B2C operations and 11% to 15% for B2B enterprises.

To minimise these risks, monitoring transaction data - such as purchase success rates and customer feedback - is crucial. Proactive strategies like smart payment routing, which directs transactions through the most efficient route, combined with robust monitoring systems, can help identify and address issues before they escalate and impact the player experience.

Solutions for Cross-Platform Payment Challenges

Addressing cross-platform payment challenges means creating systems that are secure, compliant, and easy to use. AI plays a key role in achieving this by streamlining processes and enhancing the user experience.

Unified Payment Gateways and AI-Driven Personalisation

A unified payment gateway is the backbone of smooth cross-platform transactions. By consolidating various payment methods and processors into one interface, these gateways reduce fragmentation, which often leads to security risks and inconsistent user experiences across devices.

AI takes this a step further by tailoring the payment process to individual preferences. This not only improves conversion rates but also ensures seamless brand integration and strengthens fraud detection efforts.

Take Fluid, for instance. This AI-powered digital cashier is transforming iGaming payments. It personalises every step of the payment journey, boosts conversion rates, and provides real-time insights. With advanced fraud detection and optimised user flows, it creates a secure and hassle-free payment experience, helping operators grow their revenue.

Another game-changer in this space is payment orchestration platforms. These systems enhance routing, reporting, and analytics, which can significantly improve conversion rates. The payment orchestration market is growing at an annual rate of 25%, with revenue expected to hit US$6.52 billion by 2030. For example, one operator dealing with high transaction volumes eliminated delays and errors by adopting modern payment solutions. This allowed their team to focus on strategic goals rather than operational hiccups. In another case, advanced systems cut transaction times in half, leading to greater player loyalty and higher retention rates.

While unified gateways improve consistency, catering to local markets builds trust and strengthens user engagement.

Localised and Mobile-Friendly Payment Interfaces

To succeed across platforms, payment systems must adapt to regional preferences. This means offering local payment methods, displaying prices in native currencies, translating interfaces, and complying with local regulations.

The benefits of localisation are clear. For instance, currency localisation alone can increase conversion rates by up to 12%. Moreover, 76% of online shoppers prefer to buy products with information in their native language, and 40% say they would never purchase from a site in another language.

A mobile-first approach is equally important. Responsive design, large tap targets, and intuitive mobile-friendly forms ensure smooth functionality on smaller screens.

A great example of effective localisation is SEAGM's cross-border payment solutions. By simplifying payment processing across multiple countries, expanding payment options, and reducing transaction failures, SEAGM improved authorisation rates and made global payments more accessible.

Key strategies for localisation include:

• Customising payment methods by region

• Displaying prices in local currencies throughout the checkout process

• Using native languages for form labels and error messages

• Formatting addresses, dates, and phone numbers to match regional norms

Beyond localisation, robust fraud detection ensures secure and trustworthy transactions.

AI-Powered Fraud Detection and Risk Management

Fraud in the iGaming industry has surged by over 60% between 2022 and 2024. To combat this, AI-powered fraud detection systems analyse real-time transaction data, identifying and adapting to new fraud patterns.

Currently, 73% of organisations use AI for fraud detection, with another 23% planning to adopt it soon. These systems are highly effective, improving detection accuracy by over 50% compared to traditional methods. They also minimise false positives, ensuring legitimate transactions aren't blocked unnecessarily.

Visa, for example, uses more than 500 AI applications to enhance fraud detection and productivity, processing over 500 million transactions daily. In May 2024, Visa introduced the Visa Account Attack Intelligence (VAAI) Score, which has already prevented US$1.1 billion in fraud losses by identifying enumeration attacks in card-not-present transactions. Similarly, Stripe leverages AI to scan billions of data points, preventing over US$1 billion in fraud losses.

AI systems can monitor transactions in real time, assigning risk scores to flag suspicious activity. Predictive analytics further strengthens this by forecasting potential fraud before it happens. For example, a global bank partnered with Cognizant to create an AI-based solution that sped up check verification and saved US$20 million by reducing fraud-related losses.

The success of these systems depends on continuously updating AI models to keep up with evolving fraud tactics. By using data points like device information, behavioural biometrics, and electronic identification, businesses can stay one step ahead.

Conclusion: Building Consistent Cross-Platform Payment Experiences

To address the challenges of creating seamless payment experiences across platforms, operators need to embrace innovation. Tackling issues like device-specific integration, regulatory hurdles, localisation, and fraud is critical to achieving consistency and reliability in payment systems.

Unified and intelligent payment solutions offer a way forward, catering to diverse user needs while maintaining security and compliance. As Ihor Tanyenkov, Head of AI/ML at PIN-UP.TECH, highlights:

"AI facilitates a more personalised gaming experience through engaging features like tailored game recommendations. It also streamlines compliance monitoring and operational efficiency and improves data analysis to support better business decisions."

These comprehensive systems not only reduce revenue losses but also boost player engagement. For instance, unified payment gateways can prevent up to 15% of revenue losses caused by payment failures. Additionally, localised interfaces play a key role in enhancing user satisfaction and retention.

AI-powered tools like Fluid are paving the way for the future of iGaming payments. By customising payment journeys, providing real-time insights, and integrating advanced fraud detection, such solutions address the core challenges of device compatibility, regulatory compliance, and fraud prevention. Moreover, they can cut customer service costs by as much as 30% while improving resolution rates.

In the competitive iGaming market, the quality of payment experiences directly impacts player loyalty. As one industry expert emphasises:

"In the competitive iGaming landscape, player loyalty is closely tied to the quality of their payment experiences. Seamless, secure, and fast transactions are no longer just expectations - they are essential for retaining players and building trust."

FAQs

How do unified payment systems enhance the gaming experience across platforms?

Unified payment systems make transactions in cross-platform iGaming smoother and more efficient, giving players a secure and hassle-free payment experience. These systems let users deposit and withdraw funds easily, no matter the device they’re using, which keeps players engaged and satisfied in a highly competitive market.

On top of that, they offer strong fraud protection and real-time transaction processing, boosting trust and security for players. For operators, the ability to combine multiple payment methods into one interface cuts down on operational costs and simplifies management. This streamlined process not only enhances the gaming experience for players but also helps operators increase revenue by reducing friction in transactions.

What regulatory hurdles do iGaming operators face with cross-platform payments?

Regulatory Challenges in Cross-Platform Payments for iGaming Operators

iGaming operators face a maze of regulatory hurdles when handling cross-platform payments, primarily because there's no universal framework that applies across all jurisdictions. Each country - and sometimes even different regions within the same country - has its own set of laws governing anti-money laundering (AML) and know-your-customer (KYC) protocols. This patchwork of regulations forces operators to juggle multiple compliance requirements, increasing the risk of legal issues and penalties if they fall short.

Take Malta, for instance. Operators here must meet stringent licensing requirements and ensure their payment systems align with local laws. Adding to the complexity, digital payment regulations are constantly evolving. This means operators not only have to keep up with new rules but also adapt their systems to accommodate emerging technologies. While these efforts can drive up operational costs, they’re essential for maintaining player trust and ensuring a secure payment experience.

How does AI-powered fraud detection improve security in iGaming payments?

AI-driven fraud detection plays a crucial role in bolstering the security of payment systems within the iGaming industry. By processing vast amounts of transaction data in real-time, it spots irregular patterns or behaviours that might signal fraudulent activity. This enables operators to respond quickly and mitigate potential risks.

One of its key strengths is minimising false positives, ensuring legitimate transactions go through without unnecessary delays. This not only enhances the user experience for players but also flags questionable activities for further investigation. The result? A secure payment system that protects both operators' earnings and players' funds. This level of security fosters trust, encouraging growth and stability in the iGaming sector.

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