As the online gaming industry continues to expand, embracing innovative payment solutions is no longer just a strategic advantage – it’s a necessity. With an estimated 560 million cryptocurrency users worldwide, the potential for online gaming platforms to tap into this global market is immense.
Among the most promising developments in this space is the adoption of stablecoin payments, particularly through trusted digital currencies like USDC (USD Coin) and USDT (USD Tether).
Stablecoin adoption is transforming the payment landscape, particularly in the online gaming industry, which thrives on international reach and complex partner networks. Finance and payment leaders in gaming are increasingly utilising stablecoins to streamline transactions and enhance global accessibility to not only access a broader market, but also to pay suppliers, affiliates, and customers in stablecoins without holding them on their balance sheet.
At WCT Pay, we recognise the challenges and opportunities presented by stablecoins. Our solutions enable businesses to leverage stablecoin payments without the need to hold them on their balance sheet, ensuring security and compliance while optimising financial operations.
Expanding Reach with Stablecoin Payments
Stablecoins offer a unique solution to reach new customers in emerging markets where fiat banking may be limited or unreliable. This global adoption is particularly relevant for the gaming industry, where quick and secure transactions are essential. According to data from CoinMarketCap, over $170 billion in stablecoins are currently circulating and $7 trillion was settled on blockchains in 2023. These figures highlight that the demand for stablecoin payments is undeniable.
Why Stablecoins? The Perfect Balance for Online Gaming
Stablecoins are digital currencies pegged to a stable asset, usually the US dollar, which mitigates the risks associated with price fluctuations. Other stablecoins have also emerged pegged to major currencies such as the Euro, the Pound, Yuan, the Swiss Franc, and others. For online gaming platforms, this stability offers several key advantages:
Reduced Risk of Volatility
Unlike traditional cryptocurrencies, stablecoins are positioned to maintain a consistent value, ensuring that the funds deposited and withdrawn by players retain their worth. This stability provides peace of mind to both operators and players, fostering a more secure and trustworthy environment.
Global Accessibility
By integrating WCT Pay’s crypto payment solutions, online gaming platforms can attract users from regions that may have been previously inaccessible due to currency restrictions or lack of traditional banking infrastructure.
Faster, More Secure Transactions
The decentralized nature of cryptocurrencies, including stablecoins, ensures that transactions are processed more quickly and securely than traditional payment methods. WCT Pay’s platform enables instant deposits and withdrawals, reducing the waiting time for players and enhancing their overall experience.
Lower Transaction Fees
Traditional payment processors often charge high fees for cross-border transactions, which can eat into both operators’ and players’ funds. Stablecoin payments, facilitated by WCT Pay, significantly reduce these fees, allowing operators to pass on the savings to their players or reinvest in their platform.
Elimination of Chargebacks
One of the most significant pain points for online gaming operators is the risk of chargebacks, which can result in substantial financial losses. Cryptocurrency transactions are irreversible, meaning once a payment is made, it cannot be clawed back by the player. This feature is particularly beneficial for gaming platforms, as it eliminates the risk of fraudulent chargebacks.
Four Key Use Cases for Stablecoin Payouts in Gaming
Unlocking a New Market of Potential Clients
Providing a crypto payment option opens access to a rapidly growing market of over 500 million crypto users worldwide. By integrating stablecoin payments, gaming businesses can attract and serve these users, many of whom prefer using cryptocurrencies for their transactions. This expanded market reach not only increases the customer base but also boosts revenues by tapping into the substantial purchasing power of crypto users. As the gaming industry continues to grow, embracing crypto payments can be a key differentiator and driver of financial growth.
Paying Out Winnings
For businesses already receiving deposits in stablecoins, holding a portion of these balances can facilitate the payout of winnings to customers, minimising currency conversion fees. However, many prefer not to hold stablecoins due to risk management and compliance concerns. WCT Pay offers solutions to automatically convert deposits to fiat currencies, allowing businesses to pay out winnings in stablecoins when needed, through seamless API integration.
Paying Game Providers, Tech Partners, and Affiliates
The global gaming supply chain, comprising sportsbooks, game developers, tech platforms, and affiliates, often faces challenges with traditional cross-border payments. Stablecoins provide a faster and more cost-effective alternative. WCT Pay enables businesses to settle payments in fiat currencies while leveraging the benefits of stablecoin transactions. Suppliers can choose their preferred stablecoin or cryptocurrency, and WCT Pay handles the conversion and instant payout.
Paying Global Contractors
Stablecoins are particularly useful for paying contractors in emerging markets, where traditional payment systems like Swift may be unreliable or costly. Contractors may prefer stablecoin payments for prompt receipt and as a hedge against local currency volatility. WCT Pay facilitates these transactions, ensuring smooth and timely payments to global contractors while managing compliance and reporting.
Flexibility Across Currencies is Key
The ability to move seamlessly between fiat and stablecoins is crucial for businesses to capitalise on the advantages of stablecoin payments. WCT Pay partners with gaming industry leaders to provide flexible, secure, and efficient payment solutions tailored to their needs.
Discover how WCT Pay can enhance your payment strategies and enable stablecoin payouts for your business. Email [email protected] to learn more about our innovative solutions and how we support the gaming industry in embracing the future of payments.
For more information about WCT Pay’s innovative crypto payment solutions, please visit wctpay.com or contact WCT Pay Head of Marketing, Barry Tuck, at [email protected].
Distributed by
WCT Pay
28 Castor Road
WAVELL HEIGHTS
Queensland
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