The global iGaming market is constantly evolving, particularly in terms of the payment options available to customers.
You’ll find a large number of PayPal online casino platforms, for example, but why exactly is this so popular among operators? Let’s find out!
A Look at the PayPal Platform
Having started out life as Confinity in 1998, PayPal was borne out of an Initial Public Offering (IPO) in the year 2002. During this time, it established itself as a huge multinational brand, and one that offered fintech solutions and payment solutions across a wide range of markets.
The platform has grown exponentially during its lifespan, and as of 2021, PayPal boasted 392 million active users across the globe.
Around the same time, the site also had more than 29 million active merchant accounts, while a staggering 15.4 billion transactions were carried out in total through 2020.
Total daily transitions through the site amount to around $2.5 billion, while more than 1.6 million websites (including casino platforms) now accept PayPal payments.
Certainly, a growing number of iGaming platforms and remote sportsbooks are now processing deposits and withdrawals through PayPal, and this trend shows no sign of abating any time soon.
Why is PayPal So Popular Among Online Casinos?
The question that remains, of course, is why PayPal has emerged as such a popular choice among iGaming operators. Here are some of the main reasons behind the site’s popularity.
#1. The Ubiquitous and Universal Nature of PayPal
In a competitive space such as iGaming, it’s the brands that provide the most secure and convenient experience that often emerge as market leaders.
It also makes good sense to provide customers with the most familiar and trusted payment options, including truly ubiquitous platforms like PayPal. Make no mistake; players will expect to be able to process deposits and withdrawals through PayPal, so excluding this is counterproductive from the perspective of operators.
Increasingly, the omission of PayPal as a viable payment option is something that operators see as a distinct disadvantage, and one that may actively diminish their market share over time.
#2. Instant and Hassle-free Transactions
Typically, iGaming operators are preoccupied with the provision of seamless payment options, which allow for instantaneous and hassle-free transactions.
PayPal certainly fits in this category, with the site making it easy to deposit and withdraw money by negating the need to enter lengthy card or account numbers and a host of other personal or banking details.
The platform has also integrated key user features such as OneTouch, which is an optional tool that allows users to avoid having to log in to their accounts to process payments without compromising on the security of their financial data.
Ultimately, this is ideal for both players and operators alike, with the former relying on safe and quick transactions to enrich their overall experience online.
Interestingly, it should also be noted that the PayPal platform supports more than 20 international currencies, potentially reducing conversion costs for users and minimising the total cost of wagering online.
#3. Enhanced Security
Across the whole of the online payments ecosystem, security is the single biggest consideration. We’ve already touched on the importance of security too, with PayPal known to be one of the safest online payment platforms in the market.
There are several reasons for this, with the first being PayPal’s ability to process payments without requiring the input of personal information (aside from a unique username and password).
The company also takes rigorous steps to safeguard its user’s most sensitive financial and transaction data, which is particularly appealing to high-rollers and online gamblers who wager considerable amounts of money on a regular basis.
What’s more, PayPal consistently monitors transactions to help identify and prevent phishing attempts at source. This also helps to combat instances of identity theft online, while the PayPal platform also boasts incredibly advanced SSL encryption that exceeds the industry standard of 128-bit.
As if this wasn’t enough, PayPal has also introduced two-factor authentication for its e-wallet users. This works particularly well in conjunction with online casinos, which also place an incredible emphasis on security and the privacy of its users.
Unsurprisingly, PayPal has earned more than 20 awards for excellence in the field of security, while it may well win a great deal more in the future.