Fintech and online gaming have developed massively in recent years. The online gaming sector is expected to be worth more than $32 billion by the end of 2027, with the number of users growing year on year. And as the sector grows, so will the number of transactions made, which all rely on fintech.
What is Fintech?
Fintech is shorthand for financial technology. It covers all the technology used in banking and financial services. This includes banking apps, peer-to-peer payment services, trading platforms, and automated portfolio managers. It also includes the payment services offered by online gaming websites, such as PayPal, Skrill, and Trustly.
The fintech sector is worth more than $300 billion and is growing all the time. Digital payments are expected to reach $9,471 billion in 2023 and the neo-banking sector will realize growth of 28.9%. As a result, investment in the fintech sector is growing all the time, in line with growth in the online gaming sector.
How is Fintech Used in Gaming?
Fintech is used to facilitate transactions on gaming websites. Customers use fintech applications to deposit funds and withdraw winnings from their online gaming accounts. People can also use fintech applications to purchase games, gift cards, and add-ons for their gaming accounts. If you use a gaming website, you will likely create a digital wallet, add your card information, and possibly set up a subscription for your favorite game.
Why the Gaming Industry Needs Fintech
Fintech offers a lot of benefits to the online gaming industry, but the two main ones are that it offers payment flexibility and better security.
Online gaming sites handle millions of dollars in payments every day. People using gaming sites need to know they can trust a site when they deposit funds or withdraw their winnings. While most of us trust our online banking services these days, we don’t have the same level of trust in online gaming sites, but it is becoming more common to utilize digital wallets while gaming online.
Digital wallets are a useful fintech development. Online gamers can create a digital wallet and store their debit and credit card details in there, so they don’t need to re-add them each time they deposit and withdraw money. The beauty of digital wallets is that all banking information is retained by a third-party merchant account provider, rather than the gaming website. It is a lot safer for the users since the gaming site has no access to confidential data at any point in the payment process.
With payment fraud and hacks at an all-time high, this is a big concern for users of online gaming sites. As such, fintech companies are working hard to ensure the products they provide come with the highest levels of security.
Fintech services like PayPal have been around for a long time, so they have an established brand reputation. Using PayPal to deposit and withdraw money is viewed as a normal activity and most people trust that their money is safe when they use PayPal. If you’re looking for an online casino that offers PayPal as a payment provider, pop over to these guys.
What Does the Future of Fintech and Gaming Look Like?
Fintech startups are entering the market all the time. As fintech technology evolves, online gaming companies will evolve in a parallel fashion, so they can take advantage of increased security in financial transactions.
The use of cryptocurrency is also increasing, which is something many online gaming companies have been quick to spot. There are now online casinos that accept crypto payments alongside traditional fiat payments. This trend will likely accelerate as crypto becomes more mainstream.
Online gaming needs fintech, and as the industry grows, this relationship will undoubtedly continue to prosper.
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