Gaming websites are increasingly becoming popular as they provide a convenient way to play games on the internet. The most popular genres of online gaming are freemium gaming, social gaming, MMOs, and mobile gaming.
In 2016, free-to-play and MMOs alone generated a staggering 19.9 billion dollars and this figure is expected to go even higher in the next few years.
Online gaming allows gamers to play together regardless of their geographical location and has also proven that the internet has no limits. This has led to the innovation of new and improved payment methods for making payments on online gaming sites.
In this post, we’ll be looking are the most popular transaction methods for online gaming:
PayPal is one of the most popular payment methods in the world and has established itself as one of the most trusted online payment service providers. The company was established in 1998 as Confinity by Max Levchin, Ken Howery, Luke Nosek, and Peter Thiel, and merged with Elon Musk’s online banking company X.com in 1999.
After the launch of PayPal, Musk was so confident in it that he discontinued X.com’s online banking services to focus on the new company.
PayPal became a fully owned subsidiary of eBay between 2002 and 2014, and it’s during this period that it gained massive recognition and among consumers.
PayPal broke it off from eBay in 2015 and became a publicly-traded company. Currently, the company operates in 202 markets and has more than 237 million active accounts.
The company has proven to be one of the most reliable payment methods for gamers who are looking for a reliable method of paying for online games. It has emerged as one of the best payment solutions for Riot Points in LOL (League of Legends) can also be added to a player’s Blizzard Balance for games like Hearthstone: Heroes of Warcraft.
Neteller is another leading brand in the online payment services industry. The company was established in 1999 in Canada, which makes it one of the longest-running online payment companies along with PayPal.
The e-money transfer service, which moved to Isle of Man in 2004, is owned by Paysafe Group and generates revenues of over 89.6 million dollars per year. The service is used to transfer money between merchants, social networks, forex trading and users can also use the Net+ cards to withdraw money.
Neteller is one of the most popular payment methods in the online gaming industry, especially with online casinos. The payment method was first introduced into the online gambling industry in 2000, and at that time, 85% of online casinos were using it.
Unfortunately, Neteller is no longer offered by online casinos in the U.S but it’s still accepted in other countries.
For instance, Betway offers Neteller as a payment method on its platform along with other options such as PayPal. It is also accepted by Gamingo, one of the top publishers of free-to-play online games. Other than gaming, Neteller has established itself as one of the best options for online shoppers with sites like ParkCloud and Littlewoods.
Skrill is was founded in 2001 in London, UK. The online payment service provider focuses on low-cost international money transfers.
This payment method is widely used on gaming websites because it is discreet and quick, allows users to pay from anywhere anytime, and has special offers, promos and deals for its account holders.
Its VIP program programme gives users lower fees, around the clock support and other benefits. Players can easily upload funds from their bank accounts, prepaid vouchers or cards and pay as they play.
It goes without saying that payment platforms like PayPal and Neteller laid the foundation for the existence of cryptocurrencies such as Bitcoin. Bitcoin was created in 2009 by Satosh Nakamoto. The digital currency serves the same purpose as the above mentioned online payment service providers but has gone an extra mile in making everything decentralized.
Since Bitcoin transactions have no middlemen, it means you don’t have to deal with the bank. Many people are confident that this is the future of online payments. This is evidenced by the massive rise of the digital currency from worthless to about $20,000 in 2017. Although Bitcoin is not as popular as PayPal, Neteller and Skrill, its usage has increased significantly in the online gambling industry.
Many online casinos that are looking to attract players from around the world are now offering the payment method on their platforms. It is also accepted by major global retailers such as Starbucks and Subway.
Digital payment solutions are very important in the online gaming industry. However, transactions that have to go through intermediaries such as banks still have issues such as processing fees.
Bitcoin and other cryptocurrencies are looking to change that while ensuring convenience and safety in money transfer. Cryptocurrency is expected to be the leading payment method in the near future.