A closer look at the overlooked payment pain points slowing down growth in regulated iGaming markets – and how to solve them.
The iGaming and fintech sectors are experiencing remarkable growth across Europe – but growth in these regulated markets hinges on payment systems that are flexible, secure, and built to support long-term expansion.
In 2024, Europe’s gambling market achieved a Gross Gaming Revenue (GGR) of €123.4 billion, representing a solid 5% year‑on‑year increase. Notably, online gambling now accounts for 39% of the total market up from 37% in 2023 – a trend expected to break the 40% mark in 2025.
This momentum reflects a fundamental shift towards digital, mobile-enabled platforms as the core of player engagement. As iGaming surges, having a seamless, secure, and frictionless payments infrastructure is essential – not only to meet growing demand but to elevate the experience for both operators and players. While many are aware of common payment challenges, less visible pain points often significantly impact profitability and player loyalty.
Common payment pain points in iGaming
Beyond the obvious barriers, operators face a number of critical but often overlooked payment challenges:
- The cost of false declines
Fraud prevention is essential, but overly rigid or poorly configured systems can reject legitimate players. False declines may seem minor in the moment, but they create friction at checkout, causing players to abandon platforms and resulting in lost revenue and diminished lifetime value. Repeated negative experiences damage brand trust and reputation in a market where players can easily switch providers. Given the high cost of customer acquisition, losing players at checkout is a costly error. - Lack of payout flexibility
While deposits often get priority, player withdrawals – especially cross-border – are a frequent source of friction. Limited local payout options, banking delays, and inflexible systems disrupt the player experience, increase operational strain, and reduce retention. In some markets, the absence of localised payout methods can restrict access entirely. Today, seamless, fast, and regionally tailored payouts are no longer just competitive advantages; they’re expected by players. - Inefficient routing
Many providers treat all transactions the same, routing them through a single acquirer without considering risk, geography, or payment method. This standardised approach results in lower acceptance rates in markets needing local acquiring, higher fees due to inefficient routing, and a lack of flexibility to optimise approval speed, cost, and reliability. For operators with global payment flows, smart, dynamic routing is essential to maximise approvals and control expenses.
The infrastructure behind seamless payments
In a competitive and fast-moving market like iGaming, the payments infrastructure can make or break player satisfaction and operator success. A modern, integrated payments stack delivers the speed, security, and flexibility needed to support scale and complexity.
Acquirers: Unlocking local markets
Partnering with the right acquirers grants access to local payment networks, boosting acceptance rates and enabling faster settlements. For global operators, local acquiring is critical to entering and succeeding in diverse markets.
Dynamic routing: Intelligent transaction flow
Dynamic routing systems select the optimal payment route based on factors like geography, risk profile, and payment type. This adaptability improves approval rates, reduces fees, and adjusts to evolving market conditions – critical for serving a global, diverse player base.
Advanced risk engines: Balancing fraud prevention and user experience
Machine learning-powered fraud detection tools identify genuine threats without disrupting legitimate players. Reducing false declines is crucial to maintaining trust and maximising revenue in an industry where player loyalty is challenging.
Reporting and reconciliation: Clarity and control
Automated reconciliation and detailed reporting provide operators with real-time insights into transaction flows, performance, and financial data. This transparency reduces operational errors, streamlines processes, and empowers data-driven decision-making.
Why this matters
A sophisticated, flexible payments infrastructure enhances player satisfaction and enables operators to scale confidently across markets. By reducing friction, managing risk effectively, and optimising costs, operators can drive sustained growth and long-term profitability in an increasingly competitive landscape.
How TPF Payment Solutions supports scaling businesses in specialist sectors
At The Payments Factory, we understand the nuances of operating in diverse, regulated, and fast-moving industries. Our solutions are tailored to the realities of iGaming, fintech, and other sectors where traditional payment providers often fall short.
We offer:
- Reliable processing and strong approval rates, even in markets with higher regulatory complexity
- 3D Secure support and compliance-first infrastructure to protect transactions and maintain trust
- Cross-border payments and multi-currency settlement, helping businesses expand globally with less friction
- Transparent, competitive pricing to protect margins and support growth
- Regulatory backing as a UK-regulated Electronic Money Institution, with European expansion underway
Our mission is simple: To empower more businesses and people with effortless ways to make and take payments by implementing innovative and user-friendly solutions that streamline financial transactions and improve customer experiences.
Are you operating in a regulated market and need a payment solution built to scale?
Connect with our team and explore how The Payments Factory can support your next stage of growth.