With increasing competition among new companies in the gaming industry, the margins to provide an optimal service has narrowed. And they have diminished, given that offering an optimal betting service can be challenging when considering everything that stands as optimal.
In terms of combining tech and banking, this has and continues to be one of the most significant areas of opportunity. For standard payment providers and banking, the challenge of dominating the online casino world and sportsbooks is beginning to heat up with cryptocurrencies. Still, there are new approaches that the banking industry is willing to take to keep up with the industry.
The Dilemma of Third-Party Fees
One of the main advantages that cryptocurrencies offer the gaming industry is to cut the need for players to rely on payment providers. By avoiding general banking, credit, debit, and the usage of checks, bettors and gaming companies can cut down on all fees, payments, and interest charged by such providers.
So, the dilemma remains about how to change a business model so that fees don’t become an impediment to guaranteeing client and provider loyalty. Yet, this is no easy challenge to approach from any angle. Payment providers have a legal and economic basis to sustain fees to function worldwide.
That is why getting rid of these financial considerations is almost impossible to avoid. However, when it comes to cryptocurrencies, these fees and additional payments are not only diminished but entirely removed from the equation.
According to financial advisors, payment providers will most likely remain incapable of reducing these fees anytime soon. However, most admit that cryptocurrencies have an edge in this aspect, and it’s easy to see why they are becoming more popular among bettors and gamers.
Standardizing Baking Interconnectivity
Interconnectivity is a word with many different meanings for various industries. In the banking industry, it remains a significant challenge. Banks have institutional barriers which prevent them from becoming too interconnected with similar organizations. However, banks are starting to pursue different models to strive against the new waves of competitors.
That is why in countries like the U.K., certain banking institutions are beginning to explore the concept of open banking. In basic terms, that implies cutting major fees and facilitating processes when transacting among similar institutions. By doing so, banks are attempting to cut down on the barriers that users must face daily.
With these procedures cut down to the minimum, as well as fees between banks and certain businesses, users are being incentivized to stay in the system. Although this might seem like a minor approach, most experts recognize the effort on behalf of the banking industry to proceed with such a change.
It requires major regulatory changes and modifications, but it also demands certain banks to heavily invest in new fintech solutions to enhance their service platform. That means that payments should not take minutes but seconds. Checks are now processed in days, but times need to be cut down to hours.
Overcoming the Challenge
The challenge is on the table. Still, surpassing these obstacles with tech as an ally might just be the only way most payment providers can resist the effects of industry changes brought into the gaming industry by cryptocurrencies. These user advantages only become challenges to those opposing or competing against these new types of financial and tech solutions.
The name of the game is now to stay competitive. With cryptocurrencies in the equation in a world where financial anonymity is a priority, the challenge keeps rising. Now it’s all about these minor approaches and steps to facilitate users´ gaming dynamics and practices.
To experts, these changes will prove efficient, at least among certain demographics. Yet, these changes might prove entirely insufficient when it comes to younger users and bettors. If so, the banking industry will need to continue to search for ways to stay afloat and remain in competition with cryptocurrency.