The Canadian online gambling industry has grown tremendously in the last ten years. More than just the obvious increase in the number of casinos, part of what has made this possible is the popularity of diverse and newer payment gateways. Payment systems are a critical infrastructure within the online gaming community as they’re the engine room of the operation. They’re the conduit for payments between casino operators and their customer base.
As there are now more platforms operating with an even greater number of players, online casinos are partnering with modern payment gateways to cater to the dynamic preferences of gamblers. While direct bank transfers have held sway for long, more seamless casino payment options have also emerged.. In this article, you’ll discover the popular options in 2024, what they’re about, and how to pick the best one.
Former CEO of Starbucks, Howard Schultz said – “The evolving social and digital media platforms and highly innovative and relevant payment capabilities are causing seismic changes in consumer behaviour and creating equally disruptive opportunities for business.”
What Is a Payment Gateway?
Processing transactions at online casinos have to be pleasant and the quicker it gets done, the more satisfied customers will be. A payment gateway is a technology that acts as an interface for successful electronic financial transactions. Between a casino and its customer, the digital communication regarding money that’s being sent or received has to be secure, safe, and fast.
The architecture of an online payment gateway typically requires an application programming interface (API) that allows the casino to communicate with an underlying payment processor. APIs are an essential feature in the digital economy as they’re necessary for the success of online commerce. Aside from acting as an intermediary, a payment gateway also secures the financial information of customers.
Top Payment Gateways In Canada
The Canadian payment gateway market is projected to reach US$7,309.3 million by 2030.
Between the well-known companies and not-so-popular ones, there are several reputable payment gateways worth a mention. Each is unique in its own way and depending on your preference, you’ll find great options in this list:
Adyen
Adyen is one of the world’s most technologically advanced online payment gateways. The company’s tagline “Engineered for Ambition” is not overstated. The company uses various fraud prevention techniques like 3D Secure to ensure that customers’ data are protected from fraud.
As a top-rated financial system, Adyen is a certified PCI DSS Level 1 provider. The company is assessed by an independent Qualified Security Assessor (QSA) annually to ensure compliance with industry standards. If you’re looking for a payment gateway that combines end-to-end payments and financial management, Adyen is one of those platforms that will help you realize your ambitions faster.
Stax
Founded in 2014 as the first subscription-based payments company for SMBs, Stax is one of the fastest-growing payment gateways in North America. The company has won several awards that reflect its reputation as a top provider of payment-related services.
In addition to being PCI DSS compliant, Stax uses state-of-the-art cloud architecture to ensure the safety and security of sensitive data. The company also incorporates end-to-end encryptions that prevent third parties from intercepting the financial information of users. With more than 30,000 customers, Stax remains committed to investing in new technologies to meet the needs of the digital economy.
Jeff Bezos, founder of Amazon puts it best – “If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.”
Stripe
When it comes to moving money as easily and programmable as it is to move data, Stripe is one of the best gateways for facilitating end-to-end payments. The provider offers a range of developer tools and APIs that allow for deep integration with online casinos. It was also listed among the biggest fintech companies by Forbes in 2020.
Stripe is popular with merchants due to its easy-to-use API and versatile platform. With a recorded 500M+ API requests daily and up to 13,000 requests per second, the company’s no-code solution is powerful enough for fast and quick funds settlement. For a fully integrated payment gateway suite, Stripe’s infrastructure is one to consider.
Square
As a popular payment gateway and business management system, Square is used by more than 4 million merchants globally. The company’s proprietary system ensures that no unencrypted payment data escapes your device or application. Square also uses machine learning to adjust algorithms to detect new trends in fraud.
Given the provider’s ISO 27001 PCI Data Security Standard certification, online payments couldn’t be safer when using the gateway. Customer-friendly experiences are at the centre of Square’s operations, and by incorporating future-focused, connected tools, the company has been able to create an experience that satisfies users.
PayPal
PayPal USD (PYUSD) was introduced in 2023 and is the only stablecoin supported within the PayPal network.
For many Canadians, PayPal is no stranger to the online gambling industry. Although most popular as an all-in-one digital wallet, the financial giant also has a payment gateway called Payflow. What makes this gateway different is the low rates and support for up to 25 currencies.
Depending on the casino’s preference, the integrated PCI-compliant payment gateway can be hosted by PayPal or on the gaming platform. Either way, safety and security are guaranteed for all transactions processed on Payflow.
How To Choose the Best Online Payment Gateway?
CasinoCanada announces a new partnership with N1 Partners’ RollXO Casino and that could mean expanding payment options for all users. For customers looking to explore the best payment gateways, these are factors to consider:
- Security – It’s essential to prioritize payment gateways that incorporate advanced encryptions and fraud prevention measures
- Fees – Fintech companies need to make money. Always analyze the processing fees and additional costs before using a particular payment gateway.
- Certification – The PCI DSS certification is one recognizable proof of a payment gateway’s reputation. Look out for this before making your choice.
- Supported payment methods – Gateways like Payflow support multiple payment options like credit and debit cards. The more payment methods a gateway can connect you to, the better.
Payment Gateway vs. Payment Processor
There’s usually an interconnection between the function of a payment gateway and that of a payment processing platform. PayPal, for example, provides services for both and can be classified as a processor and a gateway. The main difference between the two is that while a payment gateway is an API software application that initiates the transaction on the casino’s end, a payment processor handles transfers and communicates with the banking network.
