Leonardo Baptista: Top global payout trends set to gain strength in the sports betting market

The sports betting market is experiencing a real growth boom. According to a study by Vantage Market Research, the global betting sector was valued at US$ 81.03 billion in 2022, with a projection of reaching US$167.50bn by 2030. Accelerated growth is also accompanied by changes in behavior and demand from gamblers in the industry, who are looking for instant, secure and convenient payments.

In response to this trend, payment institutions are adopting a range of payment innovations in order to meet the rising expectations of gamblers. In addition to traditional payment options such as bank transfers and boleto, operators are implementing modern and technologically advanced solutions such as digital wallets, instant payment solutions and an increasingly continuous search for transaction security.

Below, I highlight some of the main payment trends that should be consolidated in bookmakers:

Instant payment systems

Instant payment methods have become popular with gamblers around the world. Recently, the US Central Bank launched FedNow, a new instant payment system. The novelty promises to significantly speed up the process of transferring money in the United States, if it also expands to the betting market.

In Brazil, instant payment systems are already preferred among gamblers. Baptized as Pix, the modality launched by the Central Bank of Brazil (Bacen) in November 2020, has acquired millions of fans in the iGaming market.

In the first quarter of this year alone, bookmakers traded more than US$ 2.7 billion, according to a Bacen study. A large part of this amount was transacted by Pix, as data from Pay4Fun points out that 9 out of 10 Brazilian gamblers use Pix in the betting market.

Focus on transaction security

Security in bookmaker operations is one of the main concerns for both beginners and more experienced bettors. To ensure the security of transactions, bookmakers are opting for partnerships with payment institutions that are highly diligent in preventing fraud, which meticulously verify the identity of bettors from registration to transactions, including validation of data such as an address, information registration and facial biometrics to prevent fraudulent accounts.

In addition, transaction monitoring is carried out on an ongoing basis, allowing the identification of suspicious movements or those that do not match the customer's typical profile and behavior. Due diligence programs are also implemented, which include rigorous verification of customer identity, ensuring not only the legitimacy of bettors, but also significantly reducing the possibility of using false identities to apply fraud or money laundering attempts.

Integration with digital wallets

Digital wallets are an established method in this market, offering bettors fast and convenient payment options. The modality offers a wider range of loading options that allow you to deposit and withdraw funds from your accounts. This facility also allows bettors to choose the option that best suits their needs and avoid barriers related to specific payment systems in each country.

By using a digital wallet, bettors do not need to directly provide their banking details to merchants, reducing the risk of exposure to potential fraud or data breaches. This contributes to increasing bettors’ confidence in the betting platform and promotes a safer and more secure payment experience.

Tokenization of digital currencies

The tokenization of digital currencies is gaining prominence as an excellent alternative in the financial market of this segment, due to the growing expectation of regulation of digital assets in several countries, including Brazil. With tokenization comes virtual money, providing bettors with a fully digitized experience, free of intermediaries and complicated currency conversions. This results in faster, more efficient and convenient payments, allowing users to access their funds and earnings instantly.

Transparency is another innovative aspect of tokenization. All transactions are publicly and verifiably recorded on the blockchain, ensuring the integrity of operations and strengthening trust between bettors and merchants. With this trend on the rise, tokenization promises to speed up the way transactions are carried out, offering a safer and more transparent experience for everyone involved in the market, especially when transacted in other currencies.

Regulatory compliance

In the dynamic scenario of the iGaming market, regulatory complianceemerges as a key piece in protecting against undesirable practices. To prevent money laundering, bookmakers have chosen to partner with payment institutions that implement strict internal policies, in compliance with government guidelines. Advanced monitoring systems are also implemented to identify suspicious transaction patterns.

Industry companies are strengthening their ties with regulatory agencies in different countries to establish uniform standards and share best practices, promoting a cohesive approach to combating fraud and non-compliant activities. With regulatory compliance at the forefront, bookmakers are reaffirming their commitment to providing a safe and reliable gaming experience for bettors around the world.

Payment initiator

The payment initiator, institutions regulated by Bacen, emerges as a trend that can consolidate itself as one of the main alliesof the betting sector, gaining popularity among online betting enthusiasts.

The modality works as an agent that allows the bettor to initiate transfers or payments without the need to access bank details or leave the app to carry out the transaction, eliminating the obligation of intermediaries in a transaction.

In addition, the payment initiator also features biometric authentication or passwords to ensure the protection of bettors' financial data, significantly minimizing fraud risks and increasing bettors' confidence in their online transactions.

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