Say goodbye to hosted cashiers
May 30, 2025
Fluid
Hosted cashiers hinder iGaming success. Integrated payment systems enhance speed, security, and player experience, driving industry growth.
Hosted cashiers are outdated and causing issues for iGaming platforms. Players expect faster, secure, and seamless payment experiences, but hosted systems fall short. Here's why operators need to move on:
Clunky User Experience: Redirects and slow processes frustrate players and lead to transaction abandonment.
Security Risks: 40% of operators have faced payment data breaches, and fraud surged by 60% between 2022 and 2024.
Regulatory Challenges: Compliance with strict laws like GDPR and AML is harder with hosted systems.
Demand for Speed: 42% of players expect instant cashouts, and 34% prioritise payout speed over brand trust.
The Solution: Integrated Payment Systems
Embedded Payments: Transactions happen directly on the platform, avoiding redirects.
AI Personalisation: Tailors payment options to player preferences.
Real-Time Fraud Prevention: Advanced tools detect and prevent fraud instantly.
Operators adopting these modern solutions can expect better player retention, higher revenues, and easier compliance. The future of iGaming payments is integrated, secure, and player-focused.
Effortless iGaming Payments. Connected with Pragmatic Solutions. Episode #3: Zimpler
Problems with Hosted Cashiers
Hosted cashier systems often create hurdles that prevent iGaming operators from offering the smooth, efficient experiences that players today expect. These outdated solutions rely on clunky processes that disrupt gameplay and frustrate users during critical moments like deposits and withdrawals.
Disruptive User Experiences
Hosted cashier systems redirect players away from the gaming platform, forcing them to navigate unfamiliar payment interfaces that lack the branding and personalisation they expect. This off-platform experience disrupts immersion, making transactions feel disconnected and cumbersome.
Each redirect is a potential exit point where players might abandon their transactions entirely. For instance, research shows that 92% of customers prefer to make purchases in their local currency - a feature often missing in these systems. On top of that, hosted cashiers typically require additional server requests, leading to slower load times. These delays are a dealbreaker for today’s players, who expect instant results.
Beyond usability issues, these systems also expose operators to critical security vulnerabilities, as outlined below.
Security and Compliance Challenges
Hosted cashier systems pose serious risks to player data and regulatory compliance. A 2021 report revealed that nearly 40% of online gambling operators have experienced data breaches involving payment card information. This highlights the insufficient security measures in many traditional systems.
For operators in Malta, the regulatory landscape adds another layer of complexity. They must comply with both the Malta Gaming Authority’s standards and broader European Union regulations. GDPR compliance, for example, imposes strict requirements for handling sensitive player data, with potential fines reaching €20 million or 4% of global annual turnover. Similarly, PCI DSS compliance becomes more challenging when operators rely on third-party hosted systems, as they lose direct control over payment processes.
The iGaming industry’s classification as high-risk further heightens these challenges. Fraudulent transactions and chargebacks are more common, yet hosted systems often lack the advanced fraud detection tools needed to mitigate these risks. Without real-time monitoring, operators remain vulnerable to fraud, while inefficient processes amplify these security concerns.
Slow and Inefficient Operations
Hosted cashier systems are notoriously slow and ill-equipped to handle the high transaction volumes typical of iGaming platforms. Processing localised transactions in EUR or other currencies often becomes a bottleneck, frustrating players and operators alike.
These systems rely on lengthy, multi-step verifications that delay deposits and withdrawals - sometimes by hours or even days. This sluggishness goes against modern players’ expectations for instant payments, leading to dissatisfaction and potential churn.
The operational inefficiencies don’t stop there. Many banks and payment aggregators are hesitant to work with iGaming companies, often imposing higher fees or even blocking accounts altogether. This limits payment options, increases costs, and complicates banking relationships.
Moreover, the lack of real-time reporting in hosted systems prevents operators from optimising their payment processes. Settlement delays further extend withdrawal times, creating cash flow issues for operators and leaving players feeling let down by slow payouts. These delays can damage a platform’s reputation, as players equate them with unreliability.
All these issues underscore the need for modern, integrated payment solutions that align with the fast-paced demands of today’s iGaming industry. Operators who continue relying on outdated hosted systems risk falling behind in an increasingly competitive market.
Integrated Payment Solutions
As hosted cashiers reveal their flaws, integrated payment solutions are stepping in as a smarter alternative. These systems streamline the payment process, reducing friction and inefficiencies in the iGaming industry.
By eliminating external redirects, enabling real-time fraud detection, and tailoring payment journeys to individual player preferences, integrated solutions are reshaping how payments work in iGaming. This shift also highlights the growing role of embedded technologies in redefining payment processes.
Embedded Payment Technologies
A cornerstone of integration is embedding payment capabilities directly into the gaming platform. Embedded payment technologies allow players to complete transactions - like deposits or withdrawals - without ever leaving the gaming interface. Unlike hosted cashiers that redirect users to external gateways, these solutions keep everything within the platform’s branded environment, creating a seamless experience for players.
Revenue from in-app purchases is expected to hit €271 billion by 2025, underscoring the potential of a frictionless payment experience. When players can deposit funds or cash out winnings without interruptions, conversion rates see a noticeable boost.
The technology behind this relies on APIs and SDKs, which simplify integration and development. By managing payments in-house, operators gain more control over data privacy and fraud prevention.
Big names in other industries have already proven the value of embedded payments. For instance, Uber securely stores payment details, charging users automatically at the end of a ride. Similarly, Shopify uses embedded payments to streamline transactions across online, in-store, and mobile channels.
For iGaming operators, the benefits are clear: better player retention and higher lifetime value. Players no longer face the disruption of being redirected to unfamiliar, unbranded payment pages.
"Players are more likely to engage in these transactions when the process is smooth, fast, and integrated directly into their gaming experience; the embedded finance phenomenon presents massive opportunities for game publishers."
– Brody Mulderig, Head of Web3 and Video Gaming Business Development, J.P. Morgan
AI-Driven Payment Personalisation
Artificial intelligence takes personalisation to the next level by tailoring transactions in real time. AI adapts every step of the payment journey to match a player’s behaviour, location, and preferences.
The results are impressive. AI-driven experiences can boost player retention by 30% and increase revenue per player by 25%. For Malta-based operators serving diverse European markets, personalised experiences are especially important when dealing with multiple currencies, payment methods, and regional preferences.
AI also improves payment routing and delivers customised bonuses based on user activity. 80% of customers value personalised offers, and AI can identify the most efficient payment routes for different player segments, adjusting decisions in real time.
For example, 92% of customers prefer to shop on sites that display prices in their local currency. AI systems can automatically present the most relevant payment options and currencies based on a player’s location and transaction history. This approach addresses a common pain point - 75% of users find non-personalised betting apps difficult to navigate.
"AI can personalise bonuses and rewards in real time based on user behavior, design smart recommendation systems to select relevant games, and dynamically adjust difficulty to maintain interest. It is also appropriate to use AI for automated management of VIP programs, predictive analytics to identify churn risks."
– Ihor Tanyenkov, Head of AI/ML at PIN-UP.TECH
Real-Time Fraud Prevention and Compliance
Modern fraud detection systems are critical for securing iGaming platforms. These systems use continuous monitoring and real-time transaction analysis to identify and counteract emerging fraud tactics before they cause harm.
The stakes are high. Fraud has grown 30% year over year, and the financial toll is steep - €100 in chargebacks can cost operators €207 when factoring in fees and refunds. For Malta-based operators serving European markets, such losses can escalate quickly, impacting profitability.
Fraudsters have become increasingly sophisticated. Between 2019 and 2021, the digital fraud rate in iGaming grew by 68.6%, with attackers using tools like VPNs, Tor, and incognito browsers to mask their activities. Physical adversary-in-the-middle attacks also saw a notable rise in 2024.
To combat these threats, advanced fraud prevention systems deploy multiple layers of protection. Techniques like device fingerprinting, IP analysis, and AI algorithms scan vast datasets to detect suspicious activity and abusive patterns. These systems also enforce transaction monitoring and risk-based anti-money laundering (AML) protocols that align with Malta’s regulatory standards.
Real-world examples highlight the effectiveness of these solutions. In 2024, EasyGo/Stake partnered with Veriff to improve identity verification. Veriff’s AI-driven IDV solution reduced verification times, increased pass rates, and enhanced fraud prevention, all while maintaining a smooth user experience.
"Veriff has a really clean customer interface, the prototype was really easy to use, and the system came to a decision really quickly. It was just a really great user experience, and that's something that's really important to us."
– Dan Richardson, Chief Product Officer, Easy.go
Beyond reducing direct losses, effective fraud prevention has broader financial benefits. Up to 15% of iGaming revenue is lost to promo abuse, making real-time detection essential for maintaining profitability. These systems can identify multi-accounting, bonus abuse, and money laundering attempts while ensuring legitimate players enjoy a seamless experience.
For Malta-based operators, real-time checks for politically exposed persons (PEPs) and sanctions are crucial for staying compliant and managing risk. By balancing convenience with security, these systems enhance player satisfaction and loyalty while safeguarding the operator’s reputation and financial health.
Building Better Payment Experiences
Creating smooth payment experiences involves tailoring systems to local preferences, employing smart routing strategies, and ensuring compliance through automation.
Localised Payment Interfaces
When designing payment systems for Malta's iGaming market, attention to local preferences and cultural details is key. Players expect transactions in euros (€), formatted in a way they recognise - like using commas for thousands (e.g. €1,000.50) and dots for decimals. These small adjustments can significantly increase trust and improve conversion rates.
The payment interface should highlight methods popular with Maltese and European players. SEPA transfers, Revolut, and local bank cards should take centre stage, while cryptocurrency options should be clearly marked for tech-savvy users. Always use the European date format (DD/MM/YYYY) and a 24-hour clock to ensure familiarity.
Language flexibility is another critical factor. Since many Maltese players switch between English and Maltese, payment interfaces should support both languages seamlessly. Additionally, a clean, professional design inspires confidence, especially when dealing with financial transactions.
Given the growing reliance on mobile devices, a mobile-first design is essential. This means ensuring buttons and menus are easy to navigate on smaller screens. These localisation efforts lay the groundwork for smarter transaction routing, which can further enhance the payment experience.
Smart Transaction Routing
Smart payment routing can boost approval rates and reduce costs by tailoring processes based on factors like geography, currency, and transaction history.
For example, Dabble, a Fantasy Sports app, achieved a 96% authorisation rate during the 2023 Melbourne Cup and has maintained over 90% since by integrating multiple payment processors and optimising workflows with features like 3DS authentication at the BIN level.
Similarly, Ferryhopper increased its conversion rate by 2% with Dynamic 3DS and recovered 1% of bookings through automated fallbacks.
For Maltese operators serving European markets, smart routing analyses each transaction to determine the best path forward. Here's how routing rules can make a difference:
Rule Type | Parameters | Benefits |
|---|---|---|
Geographic Location | Country, Region, Subregion | Lower fees and better approval rates |
Currency Matching | Transaction Currency, Local Currency | Reduced conversion costs |
Time Zone | Operating Hours, Peak Times | Faster, more efficient processing |
Automated fallbacks are a game-changer. If a payment is declined by the primary processor, the system reroutes it through an alternative, potentially recovering up to 15% of failed transactions.
Tracking metrics like authorisation rates, transaction costs, and chargeback rates ensures the system adapts to market changes. This not only improves payment success rates but also integrates compliance checks, paving the way for better KYC and AML processes.
Automated KYC and AML Processes
Malta's strict regulatory environment requires robust Know Your Customer (KYC) and Anti-Money Laundering (AML) measures. Automation makes compliance efficient and seamless.
With global AML/KYC penalties reaching US$4.5 billion in 2024, the financial risks of non-compliance are clear. For operators under Malta's regulatory framework, automated systems are essential for avoiding breaches while maintaining a smooth user experience.
Modern KYC solutions combine identity verification with payment method validation, simplifying the process for players. In 2022, 68% of consumers abandoned digital onboarding due to overly complex flows. Automation streamlines this, collecting required information without overwhelming users.
The benefits are evident: a top-25 EU bank saved €28 million by implementing AI-driven KYC systems, and digital-first processes increased conversions by 11 percentage points. These systems transform compliance into a competitive advantage.
Perpetual KYC continuously monitors user accounts, flagging suspicious behaviour in real time. For operators in Malta, integration with the FIAU's goAML platform enables automated detection of potential money laundering activities, politically exposed persons (PEPs), and sanctions matches.
Fraud tactics are evolving, as shown by an 18% rise in synthetic-ID fraud at U.S. lenders in 2024. AI-powered systems adapt by learning from global fraud patterns, offering enhanced protection for operators.
Biometric authentication is quickly becoming the standard for identity verification. Technologies like facial recognition and document scanning can verify Maltese ID cards and EU passports in seconds, combining strong security with a smooth user experience.
Enhanced due diligence (EDD) ensures stricter checks for high-risk users, such as PEPs and non-residents, while allowing low-risk players to verify their accounts quickly. This risk-based approach balances regulatory demands with a user-friendly experience, modernising payment processes for the iGaming sector.
Future Payment Infrastructure
The future of payment systems in iGaming is setting new benchmarks for security, financial tools, and player loyalty. Moving away from traditional hosted cashiers, the industry is embracing innovations that ensure secure and seamless financial interactions. These changes are transforming the payment landscape by introducing technologies that not only handle transactions but also combat fraud and enhance player engagement. The result? A more integrated financial ecosystem that boosts both player loyalty and revenue.
Behavioural Fraud Prevention
Fraud detection is getting smarter. Instead of relying on static rules or historical data, behavioural biometrics analyses how users interact with devices - like their typing style, mouse movements, and navigation patterns - to create unique profiles. This approach establishes a baseline for normal user behaviour (sometimes referred to as a BionicID™) and continuously monitors for unusual activity, all without extra authentication steps. The market for behavioural biometrics is expected to grow significantly, reaching $13 billion by 2033 with an annual growth rate of 23.8% from 2023.
What makes this technology so effective is its ability to provide continuous security. Suspicious activity is flagged in real-time, making it harder for fraudsters to slip through the cracks. Beyond fraud prevention, this technology supports broader financial integration, transforming simple transactions into richer financial experiences.
Integrated Financial Services
Payment platforms are no longer just about processing transactions - they’re becoming financial hubs. These integrated services offer tools like credit scoring, micro-loans, and customised financial products based on user behaviour. For instance, a player who regularly deposits €200 each month could be offered a micro-loan for a high-stakes tournament, with repayment automatically deducted from future winnings. This not only deepens player engagement but also opens up new revenue streams for operators.
The embedded finance market is projected to hit $7.2 trillion by 2030, driven by the demand for seamless financial solutions. AI-powered tools are also helping players manage their funds better, with features like spending limits, expense tracking, and personalised recommendations for responsible gaming. On the withdrawal side, players can now enjoy instant access to their winnings, a feature that significantly boosts satisfaction.
Cryptocurrency is also making waves. In 2024, DeFi transactions exceeded $90 billion, reflecting growing acceptance of digital financial tools. Features like staking rewards, liquidity pools, and crypto-based loyalty programmes are particularly appealing to tech-savvy players, offering new ways to engage and retain them.
Here’s a quick look at some key financial services and their benefits:
Financial Service | Player Benefit | Operator Advantage |
|---|---|---|
Micro-loans | Access to higher betting limits | Increased player lifetime value |
Credit scoring | Personalised financial products | Better risk management |
Instant withdrawals | Quick access to winnings | Higher player satisfaction |
Cryptocurrency staking | Passive income opportunities | Improved player retention |
Connected Loyalty Ecosystems
Loyalty programmes are evolving into dynamic ecosystems that connect gaming rewards with broader experiences. Tokenisation plays a key role here, turning physical assets into digital tokens that can be used in various ways, from fractional ownership to expanded investment opportunities. These programmes work - 74% of participants say they’re more likely to stay loyal to a company offering such benefits, and 67% report shopping more frequently with retailers that provide loyalty rewards.
For example, an Asian Pacific retailer partnered with Mastercard to launch a gamified loyalty programme featuring personalised challenges. The result? A 60% increase in app engagement and a sixfold rise in purchase frequency among participants.
In Malta, iGaming operators could use connected loyalty systems to link gaming rewards with local businesses. Imagine redeeming tokens for discounts at hotels, restaurants, or entertainment venues. This approach has already proven successful in other industries. KFC’s Super App, for instance, attracted 80 million members in its first year and grew to 120 million by year three.
Conclusion: The Future of iGaming Payments
The move from traditional hosted cashiers to integrated payment systems is reshaping the iGaming sector. With the industry expected to reach a market value of USD 127.3 billion by 2027, growing at an annual rate of 11.5%, operators who embrace modern payment technologies are positioning themselves for long-term success. This shift isn't just about convenience; it's about staying competitive in a rapidly evolving landscape.
Consider this: 83% of players say their payment experience directly influences their decision to remain loyal to a sportsbook. This statistic highlights why optimising payment systems is no longer optional - it’s a necessity. When TrueLabel adopted Reiterate's reconciliation platform, they achieved 100% automated data entry, significantly improving accuracy and operational efficiency. Such advancements not only streamline internal processes but also pave the way for increased revenue and enhanced security.
"Our commitment to AI adoption extends beyond market expansion capabilities to revolutionising our internal operations. Implementing Reiterate's reconciliation platform has transformed our back-office efficiency, reducing payment processing time with 100% automated data entry whilst dramatically improving accuracy."
– Vladyslav Kalinichenko, COO at TrueLabel
The benefits of modern payment solutions go beyond automation. For instance, platforms that adjust friction levels based on individual player behaviour can boost revenue by up to 71%. Additionally, offering region-specific payment methods can lead to a 40% increase in deposit success rates. These improvements directly impact profitability while enhancing the player experience.
AI-powered payment systems are also setting new standards across the industry. Solutions like Fluid integrate multiple payment providers into a unified system, learning from player behaviour to optimise transactions in real time. This eliminates the fragmented experiences of older systems, delivering seamless and personalised payment journeys. At the same time, advanced security features monitor behavioural patterns to prevent fraud, while embedded compliance ensures regulatory standards are met automatically. For operators in Malta's regulated market, these capabilities are invaluable, reducing administrative burdens while maintaining stringent security protocols.
Looking ahead, the integration of financial services, cryptocurrency options, and loyalty programmes will further distinguish operators who invest in cutting-edge payment infrastructure. With 73% of American players anticipating real-time payment solutions in sports betting by 2025, the window to gain a competitive advantage is quickly narrowing.
The choice for operators is clear: stick with outdated hosted cashiers or embrace integrated payment systems that enhance player satisfaction, streamline operations, and drive revenue growth. As explored in this guide, rethinking payment processes isn’t just about keeping up - it’s about building a foundation for sustainable success in the ever-changing iGaming world.
FAQs
What challenges do hosted cashier systems bring to iGaming platforms?
Challenges of Hosted Cashier Systems
Hosted cashier systems come with a set of hurdles that can directly affect how smoothly iGaming platforms operate and the experience they offer players. One of the primary issues is the slower transaction processing times. This delay can frustrate players, as longer wait times often disrupt the flow of gameplay. Additionally, these systems tend to come with higher operational costs, which can strain budgets.
Another significant drawback is their limited ability to handle the vast array of payment methods that today’s global audience expects. With iGaming platforms catering to players from all over the world, the inability to support diverse payment options can be a major limitation.
On top of that, hosted cashiers often fall short when it comes to embracing modern payment technologies. This lack of adaptability makes it challenging to implement cutting-edge security features or provide a tailored payment experience. The result? A payment process that feels less smooth and secure - two factors that are crucial for building trust and keeping players satisfied in such a competitive industry.
How do integrated payment systems enhance security and ensure compliance for iGaming operators?
Integrated payment systems prioritise security by employing advanced technologies like tokenisation and encryption. These tools work to protect sensitive player data during transactions, significantly reducing the risk of fraud and data breaches. The result? A safer, more reliable environment for both players and operators.
Additionally, these systems simplify regulatory compliance by automating processes tied to requirements like Know Your Customer (KYC) and Anti-Money Laundering (AML). This automation not only ensures operators meet legal standards but also lightens the administrative workload. Together, strong security measures and streamlined compliance build player trust and help operators steer clear of potential legal complications.
How does AI-driven payment personalisation improve the player experience in iGaming?
AI-Driven Payment Personalisation: Enhancing the Player Experience
AI-driven payment personalisation takes the gaming experience to another level by customising payment options to match individual player preferences and habits. By analysing player data, AI identifies and recommends payment methods players are most likely to use, making transactions faster and smoother. This eliminates unnecessary steps, reducing hassle and creating a more fluid process.
Beyond payments, AI can also offer tailored promotions and bonuses aligned with a player's gaming behaviour. Whether it's a bonus for their favourite game or a personalised reward, these offers boost engagement and satisfaction. With real-time adjustments, players face fewer barriers during transactions, ensuring a secure and hassle-free experience that encourages them to return.