When online sports betting first began, during the 1990s, limited payment options were available. These payment options were normally bank transfers and credit/debit cards.
These methods were accepted in sportsbooks in countries where sports betting was legal. The situation has changed somewhat in the intervening years. Sportsbooks in some countries, including the UK, are no longer legally permitted to accept payment by credit card. However, other traditional payment methods are still popular with people who want to bet on sports online.
Traditional payment technologies for gambling
Bank transfer has always been a secure means of paying for bets online. It’s a method that has spread across the planet, including Europe, North America, Australia and Asia where reputable betting sites are already allowing for local Indian bank transfers, making deposits easier for native sports bettors.
The positive aspect of using a bank transfer is that it’s secure as banks employ the latest 128-bit encryption technology. The negative aspect is that transactions are time-consuming.
Sports betting enthusiasts also still use debit cards to place bets at sportsbooks. However, using this method means that an individual potentially needs to share secure information with several different sportsbooks.
The negatives of these methods have meant that the needs of sportsbook users have been influential in the development of online payment technology.
Alternative online technology payment options used on gambling sites
Several examples of online payment technology are now used for making deposits at sportsbooks. The most popular of these is PayPal which is widely used for making payments digitally and is especially popular in the realm of online gambling.
PayPal technology makes use of a digital layer which allows the seamless transfer of money between bank accounts. The sportsbook simply uses the PayPal details that a bettor provides and sends them to PayPal via a system called Payflow. If there is no money in the bettor’s PayPal account, PayPal instigates an ACH transaction to secure the money from the bettor’s bank account. It’s a secure technical payment solution.
Skrill and Neteller are also widely used forms of online payment technology. Both technologies have been owned by Paysafe Group since 2015. Both Skrill and Neteller have been developed taking account of the same demands as those for banking services and share trading. This means that individual personal data is secured using 128-bit encryption and certified by VeriSign.
POLi is online payment technology that enables payments to be made to a sportsbook in Australia or New Zealand. The payment is made using a direct connection straight from a bettor’s bank account. This makes payments secure and instant.
iDebit is used in Canada and works in a similar way to POLi. It involves the use of an individual’s bank details and security question in order to complete the transaction. Again, 128-bit encryption is at the centre of this technology.
Online payment technology has evolved significantly since sports betting sites first came into existence in 1996. The security and speed requirements of bettors have had a significant impact on these developments. Today, technology has made it possible for people to pay for betting in a number of ways including secure options such as PayPal, Neteller and POLi.