At the forefront of online payments innovation
The online gambling sector leads the way in innovative online payment methods. In 2017, our member companies processed at least 354 million online payment transactions – nearly 1 million each day – through 31 different payment types on average.
Online gambling is to a wide extent dependent on payment services. It involvements deposits or payments in – the bets or stakes placed by customers. And it involves withdrawals or payments out – the amount of money a customer wins. As a result, online gambling operators and its consumers alike are interested in easier, safer, and more convenient payment methods. In 2017, our member companies processed at least 354 million online payment transactions – payments in and payments out – representing nearly 1 million transactions each day.
Leading the way in innovative online payments
In the online world cash does not exist as a payment method. All payments are electronic, and the increasing numbers of online transactions help push new and innovative payment innovations which are fast becoming the future of technology-driven purchasing. The online gambling sector has traditionally led the way in the use of a multitude of innovative payment methods, including e-wallets (such as PayPal and Skrill), which provide customers with the security, protection and convenience they need to send and receive funds. In 2017, EGBA members offered their customers 31 different payment types on average, including e-wallets, bank transfers and direct debits. In the future this might even include crypto-currencies and other fintech payment options.
Payment methods are a crucial tool to fight fraud and protect consumers
Payment methods do not only serve the purpose of allowing customers to deposit and withdraw money to and from their gambling accounts. Payment services also allow to authenticate the identity of customers, as required under gambling laws and regulations regarding the protection of minors, consumer protection, the prevention of fraud and money laundering. Online gambling operators apply certain verification controls depending on the ‘Know-Your-Customer’ (KYC) procedures connected with a specific payment method. EGBA members have demonstrated their commitment to KYC rules by investing €22.6 million to strengthen their KYC procedures, include payments and age verification checks.
In online gambling, dedicated customer accounts allow every transaction by a customer, to always be associated with their customer account, which makes online gambling payment transactions highly transparent and traceable. Mandatory player accounts support the fight against fraud and money laundering by requiring customers to provide several key identification data, including the name, place of residence and date of birth, when creating a player account. This creates a full audit trail which enables the identification of sources of payment funds and audit trail on how they are used.
EGBA members’ commitment to fighting fraud and money laundering does not stop at utilising payment methods to strengthen KYC procedures, in 2017 our members completed 56 licensing audits, 16 of which included specific anti-money laundering checks.
- Online gambling is truly a payments sector. In 2017, EGBA members processed a total of 354 million online payment transactions, equivalent to nearly 1 million transactions per day
- 31 different online payment types on average are offered by EGBA members to their customers
- EGBA members have demonstrated their commitment to KYC rules by investing €22.6 million to strengthen their KYC procedures, include payments and age verification checks.
- 56 licensing audits, 16 of which included specific anti-money laundering checks, were completed by EGBA members in 2017.