Does PayPal Threaten Bitcoin’s Market in iGaming?
PayPal was once the leading payment system in online gambling until stricter regulations were implemented leading to its exit from the iGaming industry in 2003. More than a decade after, however, PayPal is slowly making its comeback to the online casino scene.
The past few days witnessed its return, and a few brands have already started accepting PayPal payments again. The company is still testing the waters after its long hiatus from the US market. Currently, it only offers four casinos a pilot program for its payment services, and one of them is Caesars Entertainment.
During PayPal’s absence from the US casino market, Bitcoin started building a ground for alternative payment methods. Offering features absent in traditional systems such as online anonymity, faster transactions, and a fitter security system, Bitcoin proved to be the better option for bettors. However, will PayPal threaten Bitcoin in terms of the digital currency’s run to become the prominent payment method in online gambling?
A worthy comeback?
The popular payment system is yet to demonstrate its worth again in the US market after Bitcoin’s rising popularity in the industry.
Past involvements with fraud and regulation cases heightened cautionary senses of PayPal, which is why the team is taking the integration of its services back into online casinos in a steady fashion. Together with its subtle entry, PayPal has also slowed down the process in order to give its services and this opportunity more time to stabilize.
The team is well-known for the strategies it used to expand its horizons. The strategy consisted of three phases, including its focus on eBay users, earning from service charges, and adding its availability to multiple platforms. This helped with the company’s recognition and growth.
Furthermore, its established reputation clearly serves as a giant stepping stone that will help it rack up more online gamblers for the casinos with its services. However, is it enough to outrun the advantages of Bitcoin? So far it is the only threat that should concern the digital currency. If PayPal wants to reclaim the throne, services have to be improved.
Bitcoin muscles out competition
As far as PayPal’s advantages go, there is nothing in that list Bitcoin cannot offer the players who prefer to wager on Bitcoin games. Cryptocurrency might not be the biggest name in the online gambling industry, but it currently paves a path toward mainstream acceptance. The technology fits in the online casino market with ease, and considering its age and the superiority it displays over other methods, the payment system still has a lot ahead of it.
What competitors like PayPal can do regarding this matter is to collaborate. The two brands can use each other’s customers, and at the same time, create new market opportunities that can be directed at the development of the iGaming market, especially with the Bitcoin casinos accepting US players.
PayPal recently introduced Bitcoin payments to merchants existing PayPal accounts. This system can be optimized for it to work with online casinos, adding to the options bettors have, resulting in better accessibility of every gambling website, as well as a wider adoption of Bitcoin on a global scale.