Payments have become an increasingly important part of business strategy for operators in the iGaming industry, mainly due to the significant impact that Payments can have on the bottom-line
The purpose of this article is to discuss 4 crucial things to consider when choosing a payment service provider for your operation:
The iGaming industry is fast-moving and complex, and hence the ability to adapt to regulatory, economic, technological and pollical changes in the market is a very important skillset. The skill to adapt is developed with experience. Handling change is never easy and that is why it is advantageous to work with professionals who are able to see the bigger picture and take difficult decisions when required.
When picking a payment service provider (PSP), it’s always of added benefit if the leadership team have previous experience working in your industry as a service provider, operator, or ideally, both. For example, at FinXP, several members of our executive team have worked in leadership positions in iGaming companies and that gives them valuable insights in how the industry works. When clients approach us with their challenges, our team has most probably already met these challenges before.
As an operator, it is in your interest to ensure that your payment and banking service providers are carrying out adequate KYC and KYB checks and that they are not working with so-called shady businesses. The last thing you want is to find out that your service provider has failed an audit by a regulatory body and that it’s being fined a substantial amount, or worse, that it is losing its license. For example, if your company’s bank or EMI loses its license, then that would mean that your company’s funds would end up being frozen for a certain amount of time.
When applying to work with a service provider, take note of the application process to see if it is comprehensive, and enquire about their fraud and risk management procedures. It’s also good practise to check if any of the Tier 1 operators work with the service provider, to check if the service provider has been fined before, and also to check how long the company has been founded and how much experience their team has. Knowing who you are going to be working with from beforehand is in your interest.
It is sometimes argued that when one considers all the compliance related requirements in iGaming, that these can hurt conversion rates for operators. Although this is not necessarily always true, it does mean that being able to offer a great payment experience to end-users has become an important consideration when choosing a PSP.
However, it’s not enough to only offer a great experience to end-customers, it’s also important to offer an easy-to-use experience to the operators’ employees who are using the payment software in the backend. One of the things that we do at FinXP is that we organize qualitative interviews with clients and partners in order to gather feedback and insights on our software’s user experience and features. Modifications to the software are then done accordingly.
Range of solutions
Having a technical team that can carry out such software modifications is a big advantage for the PSP. It means that merchants can benefit from payment solutions that are custom-built for them.
Beyond being able to offer custom solutions, it’s always an advantage when a PSP can offer a wide-range of payment solutions. The benefit is that it not only allows you to offer the right payment mix but you would already have established a relationship with the service provider thus facilitating any further compliance checks. Furthermore, using the same service provider also means that you could benefit from improved rates on transaction fees.
Choosing a PSP is like choosing a business partner. The right PSP will not just treat your business as a client, but rather as a partner. At FinXP, we do this by taking a consultative approach and assisting our partners with their payment strategy. We are also proactive and when we see payment opportunities or even joint-venture opportunities, we approach you, as after all it is also in our interest to see your business grow.
To speak with the FinXP team and explore possibilities for working together, please contact us on [email protected].
FinXP is an established payments and banking solutions provider that is committed to empowering businesses to easily make and receive payments in whatever form best suits them. The company, which is led by an experienced management team that has been serving the iGaming industry for many years, is growing fast and offers iGaming operators, affiliates, and suppliers multiple payment solutions including Business IBAN accounts, Virtual IBANs, a Payment Gateway with 250+ payment methods, SEPA Direct Debit and SEPA Credit Transfer services, as well as expert payment consultancy services combined with bespoke payment solutions.
FinXP, founded in 2014, is a Malta-based electronic money institution, licensed by the Malta Financial Services Authority. Its license has been passported within the EU and EEA, and it is registered with the European Payments Council and SWIFT. For more information, please visit https://finxp.com.
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