Online betting is a high-risk business, for which getting a merchant account from a payment service provider is almost always accompanied by difficulties caused by multicurrency, chargebacks and non-legal betting operations in certain regions.
All of this makes it difficult to get betting development, so many companies are turning to cryptocurrencies and cryptoprocessing. Here we tell you what it is, why you need it, and how to choose a new payment instrument correctly.
Why Do You Need Crypto Processing in Betting
Cryptoprocessing is a financial instrument that provides processing and acceptance of payments in cryptocurrency. Today, more than 100 million people use it. Not surprisingly, that many companies, seeing the potential in it, connect the crypto processing to their website or online store. Accepting cryptocurrency payments is a great way to stand out amongst your competitors and expand your customer base.
For merchant and buyer, crypto processing is an intermediary through which payments are accepted, validated in blockchain by nodes and, just as importantly, converted from cryptocurrency to fiat money. Thus, cryptocurrency processing services allow covering a larger number of clients no matter where they are located and to withdraw the received payments into real money.
In addition, cryptocurrency transactions are absolutely transparent and can be conducted in large volumes. Integration with crypto processing also greatly simplifies business processes that are almost impossible to solve on one’s own:
- Privacy of customer and merchant data.
- No chargebacks.
- High speed of transaction processing.
- Conversion into fiat money.
- Legitimate turnover of funds.
- Easy website integration.
- No bureaucracy.
- Increase of client base.
How to Choose Cryptoprocessing for Betting
For a sports betting platform, it is important that the payment service intermediary matches its needs. We have chosen four key indicators on which you can rely in choosing a crypto processor.
Fiat processors are usually set too high fees for betting platforms because of the high risks — 2–3%, and in some cases 10–15%. Compared to them, cryptocurrency processors are much cheaper — fees range from 0.4% to 1%. This is related to low operating costs.
A large number of cryptocurrencies allows you to attract more customers, so multicurrency plays an important role in choosing a cryptocurrency processor. A good advantage would be for the processor that has a volatility risk control system, or VRCS, that allows you to convert cryptocurrencies into stablecoin tied to fiat currency.
A reliable crypto processing service does not allow cryptocurrencies to be processed that have been involved in one way or another in fraudulent or illegal activities. To protect customers, a good service should have its own fraud-monitoring system that tracks suspicious activities.
For the owner of a betting company, a server failure can turn into unpleasant problems: customers will be unable to make payments and you will lose your reputation. That’s why it’s extremely important that the crypto processing service provides 24/7 technical support to solve problems in a timely manner.
A successful example of a top-class cryptoprocessing service is 0xprocessing. Today it is already integrated into more than 300 businesses, operates worldwide and helps merchants accept more than 40 types of cryptocurrencies. Clients of the service are protected from cryptocurrency value fluctuations thanks to an automatic volatility risk control system.
Moreover, the service supports payment in Web3 wallets, conducts recurring payments through smart contracts, and allows you to accept payments in countries where it is difficult to set up any payment systems or methods.