As the iGaming industry continues to evolve with technological advancements, discussions about more responsible gaming practices have become increasingly important. Nowadays, online gaming platforms are easily accessible, making it crucial for both operators and players to adopt responsible practices. By implementing such measures, it’s possible to protect players from potential harm and ensure gaming environments remain fair.
Many operators rely on a single PSP, which can pose operational risks and limit their reach. To help you better understand, let’s explore why having more than one PSP (Payment Service Provider) is essential for gaming operations.
What Is a PSP and Its Role in iGaming?
A Payment Service Provider (PSP) is a service implemented by merchants to process all online payments made via debit cards, credit cards, e-wallets, etc. It differs from the term “payment gateway.” PSPs enable businesses to accept various payment methods from their customers. They handle the complexities of payment processing, including international transactions, allowing businesses to focus on their core activities.
Benefits of Having More Than One PSP
1. Reducing Dependence on a Single Provider
By using more than one PSP, you reduce operational risks. If there are technical issues or interruptions with one provider, you won’t be entirely reliant on them, minimizing transaction impacts. Moreover, avoiding commercial dependence on a single provider ensures better negotiating power. Relying solely on one source might allow the provider to impose less competitive rates and conditions that don’t meet cost-effectiveness or flexibility expectations.
Having multiple PSPs is a strategy that combines technological and operational advantages. From a technological perspective, redundancy ensures that if one PSP experiences technical failures, the other can act as a fallback. This approach also enables traffic load balancing, reducing risks and enhancing efficiency, especially during high-demand periods such as championship finals or significant events.
On the operational side, using multiple providers reduces dependency on a single supplier, mitigating risks related to interruptions. It also strengthens commercial negotiating power, ensuring more competitive conditions and better flexibility.
2. Access to Diverse Markets
Multiple PSPs allow you to adapt to the preferences of each market since payment methods vary significantly by region.
3. Improved User Experience
Operators offering various payment options enhance customer satisfaction by allowing consumers to choose the most convenient payment method for them.
4. Competitive Transaction Fees
By working with different PSPs, operators can compare transaction fees (often a percentage of each processed payment) and select the most advantageous ones for each market or payment method.
This also enables scenario management: choosing PSP A for one type of transaction, PSP B for another, and so on, maximizing commercial conditions.
5. Service Quality
Using multiple PSPs allows you to benchmark technical quality and customer service between providers. This includes practices such as response times, success/failure rates, and technical support. It enables operators to pressure providers to maintain high-performance and reliability standards.
6. Compliance and Regulation
Using multiple PSPs ensures greater compliance with regulations, enabling operators to meet the legal requirements of various markets.
Key Considerations When Choosing a PSP
1. Regulatory Compliance
Ensure the PSP complies with local and international regulations, such as AML, GDPR, and KYC requirements. A compliant PSP reduces legal risks, increases your platform’s credibility, and ensures secure and reliable payments.
2. Risk Management
Choose a PSP with advanced fraud detection, merchant risk evaluation, chargeback management, and real-time monitoring. Effective risk management protects your platform from potential losses and minimizes fraudulent activity.
3. Global Reach and Currency Support
Opt for a PSP that supports transactions in multiple currencies and offers global payment processing capabilities. Including alternative payment methods (APMs) and localized options, such as mobile payments and cryptocurrencies, can improve user experience and conversion rates.
4. Diverse Payment Methods
A broad range of payment solutions—credit/debit cards, e-wallets, bank transfers, and cryptocurrencies—is essential. Offering multiple payment methods attracts a wider global audience, improving player retention.
5. Transaction Speed and Reliability
Choose a PSP known for instant withdrawals, fast processing times, and reliability. Quick, reliable transactions are crucial for maintaining player satisfaction and trust, especially for high-volume transactions.
6. Transparent Fee Structure
Carefully evaluate the PSP’s fee structure, including transaction fees, chargeback costs, and any hidden charges. A transparent and competitive fee structure ensures profitability while maintaining secure payment portals.
7. Customer Support
Ensure the PSP offers 24/7 customer support and dedicated account management. Reliable support is vital to quickly resolving issues and ensuring a seamless payment process, particularly in the demanding world of online gaming payments.
How Egaming Services Can Help You
Researching the iGaming industry can be complex, particularly when choosing the best PSP for your needs. At Egaming Services, we specialize in helping online gaming operators make informed decisions tailored to their specific needs.
We provide focused guidance to ensure partnerships with PSPs that meet regulatory and security requirements. Contact us today and focus on delivering the best gaming experiences while Egaming Services optimizes your payment processing strategy.
