There’s no doubt that the eGaming industry is currently undergoing a period of spectacular growth, which has been in full swing for most of the last decade.
According to a recent PwC report, the sector could be worth a monumental $321 billion by 2026 – double that of 2019 and still a cool $40 billion more than the projected 2024 figure.
The emergence of digital technologies and the widespread use of smartphones and tablets has been instrumental in the sector’s development.
With so much buoyancy around the industry, you’d have thought this would herald a time of much backslapping within the banking fraternity, with financial institutions falling over themselves to be part of the action.
That’s actually not the case. The stark reality is that an increasing number of banking providers have been keener to pull the plug on commercial banking and payment services for the gaming sector, including here on the Isle of Man.
Where banks can hinder cross-border transactions:
Banks have always had a somewhat uneasy relationship with the gambling industry. A combination of regulatory and legal concerns, in addition to the perception of risk attached to the sector, has seen traditional financial institutions turn their back on eGaming firms – often at very short notice.
This has created a number of challenges for eGaming platforms, including the blocking of accounts, as well as curbs on payments and international transactions. At times, the process of facilitating fast and efficient transfer of different currencies between jurisdictions has been virtually impossible.
This has undermined the business performance of gambling firms, denting consumer confidence and destroying trust.
Being able to turn to more sympathetic banking partners and payment providers has, therefore, become a necessity for many eGaming operators.
Being confident that cross-border currency payments are going to happen when they are expected to happen, is a fundamental part of eGaming. Having complete confidence in a payment provider is an essential element of a growing business’s day-to-day operation, often with staff and customer loyalty depending upon it. How on earth is a company expected to increase its revenues, if it can’t get transact efficiently?
Here’s how MFX can make life easier for eGaming operators:
The eGaming sector is on a trajectory of unparalleled growth, yet the banking sector continues to turn its back on even the most reputable gambling operators. That’s why it’s vital for operators in the sector to keep a close eye on their banking arrangements and have a healthy regard for diversification.
For operators looking to circumvent banks that don’t play ball, in order to enhance user experience and unlock new growth opportunities, it’s essential to shop around for payment providers.
At MFX, we have a deep understanding of the eGaming sector – working with businesses across the sector, both large and small. Above all, we appreciate just how important it is for these businesses to facilitate trouble-free international payments. After all, the reliability of cross-border transactions is the lifeblood of many an operator.
MFX is a dedicated Isle of Man-based foreign exchange brokerage. Established in 2014, we work with some of the biggest names in the eGaming sector. We are long-standing partners of moneycorp, world leaders in international payments, who offer proven and effective foreign exchange, payment and hedging solutions.
Like us, they understand the trials and tribulations that eGaming firms have encountered with the mainstream banking world. So, if you have requirements for cross-border transactions – regardless of frequency or currency - you are definitely in the right space.
If you operate in the online gaming industry on the Isle of Man and are looking for an alternative provider, or you would like a second opinion on your current foreign exchange arrangements (always a good idea), call MFX directly on 01624 694731 or email may.hooper@mfx.im