Are Cryptocurrency Payments the Future of The Online Entertainment Sector?

With global market capitalization surpassing the USD 2.5 trillion mark, cryptocurrencies are fast becoming a mainstay in digital payments globally. The online entertainment sector in particular has become one of the largest sectors globally to embrace cryptocurrencies as a major financial instrument for their operations. From online casinos to gaming sites, cryptocurrencies are becoming a default payment option for millions of customers who engage in business with thousands of online entertainment companies.

The Benefits of Cryptocurrency Payment in Online Entertainment

The virtual nature of cryptocurrency and the strengths of the underlying blockchain technology that powers their operations are motivating more online entertainment companies to venture into business operations that accept cryptocurrencies.

Let us explore some of the top benefits that these companies gain with cryptocurrencies:

Inherently Secure

One of the fundamental pillars of cryptocurrency is security. They are inherently secure when compared to other digital payment instruments and hence are a huge motivator for online entertainment companies to promote their usage as customers are likely to have more trust in the payment mechanism. The security aspect is strengthened by the fact that cryptocurrency payments do not require customers to part with any of their sensitive personal or financial data when executing a transaction. Hence, even if fraudsters manage to break into the network, they do not have any credible information to steal people’s money.

The direct payment mechanism ensures that only the operator and the customer are involved in the transaction chain and no amount of external tampering will manipulate a recorded transaction thereby guaranteeing long-term security benefits.

Facilitate Operations at a Global Scale

Entering new international markets is always a challenge for online entertainment companies. While the internet allows customers to use the service, it is the payment mechanisms that usually turn into the biggest obstacle. Regulatory oversight, compliance mechanisms, high forex markups, and restrictions often disallow traditional payment instruments like cards and internet banking to be used for making payments to sectors like online casinos. This is where cryptocurrencies play a major role in helping them enter new markets with ease.

Cryptocurrencies do not operate with the help of intermediaries like banks and hence they are not affected by restrictions or high fee mandates that plague conventional payment instruments. Virtual currencies allow payment settlements to happen directly between the service provider and the customer irrespective of where either is located. The transparency of transactions eliminates any likelihood of liabilities and disputes since every transaction is recorded and cannot be tampered with by external entities without the knowledge of either party.

Protects Privacy

We have seen how cryptocurrencies work without the need for people to divulge sensitive personal or financial information. This provides an additional layer of privacy protection which most customers value highly today. Since online entertainment options such as online casinos and online gambling sites are highly regulated in several countries, privacy is a huge concern. Customers need to be discreet about their spending in such activities if they fall under the jurisdiction of countries where potential legal challenges exist for participating in such online activities.

Traditional payment mechanisms have too much involvement from banks and other leading financial institutions. These bodies are regularly mandated by law to report transactions that are reportedly executed in restricted activities such as online casinos. Customers who undertake such transactions may find their financial channels being restricted since banks have too much control over traditional payment instruments. Cryptocurrencies have no such problem as they work independently from banks and financial institutions and do not acquire any personal or financial data for executing transactions.

Faster Direct Settlements

One of the best things about cryptocurrencies is that they are incredibly fast with settling payments. The primary reason for the same is the lack of any intermediaries to handle payments between customers and the service provider. In the traditional payment cycle, a customer making a payment or receiving a payout from their winnings would need participation and approvals from their banks, the operator’s bank, and any global or local payment channels that facilitate the payment. This complex web of payment approvals and transfers causes significant delays and even leads to disputes.

With cryptocurrency, there are no middlemen or approval cycles involved. When a customer pays or requests a payout for their winnings, the payment happens instantaneously without any moving parts in between. The payment happens directly and hence only the service provider and customer are involved in the cycle, which is also highly transparent, thereby eliminating the need for disputes or legal battles.  

Expanding the Horizons for Online Entertainment Services

Cryptocurrencies set the bar high for businesses such as online casinos from not just a security standpoint, but also in enabling them to seamlessly access new markets and provide trusted services to customers. The real challenge for businesses that aspire to embrace cryptocurrencies as a legitimate payment option for their customers is to build a fundamentally strong payment ecosystem that can support both conventional and cryptocurrencies while staying competitive and compliant. This is where a trusted technology partner like Verinite can make a huge difference. Get in touch with us to know more.