Contactless payments in sweepstakes casinos: The past, present, and future

Contactless payments, preferred for speed, convenience, and security, account for half of all global transactions. While land-based casinos have been turning cashless since the pandemic, the digital realm has remained largely unaffected by this new payment trend—until now.

Needed or not, NFC (Near-Field Communication) payments and other contactless transactions are finding their footing in online casinos, including sweepstakes operators. Here’s everything about contactless payments’ past, present, and future in online sweepstakes casinos.

Introduction to contactless payments

Contactless payments eliminate any need for contact: you don’t need to exchange cash or swipe your card. Aren’t all types of online payments contactless? Not exactly. In this context, a contactless payment refers to transactions you can complete with a single click or tap.

If we look at the current sweepstakes casino payment methods —credit and debit cards, bank transfers, crypto, and e-wallets—we can define only the last one as contactless. In addition to mobile wallets, some forward-thinking sweepstakes casinos support SMS payments.

Do we genuinely need contactless payment methods in sweepstakes casinos? Over half of casino goers (54%) said they would be “very likely to use digital or contactless payment options when they gamble.” It’s easier to deposit funds, doesn’t interrupt the gaming experience, and is reportedly safer.

Current trends in contactless payments in sweepstakes casinos

Tap-and-go payments make more sense in the real world, allowing you to pay for goods and services by tapping or waiving a card or smartphone over a card reader. Although they might not be as necessary on the internet, they have become integral to our daily lives.

The need for contactless payments in sweepstakes casinos doesn’t stem from necessity but consumer expectations. AGA president and CEO Bill Miller confirms that:

“The COVID-19 pandemic made it all the more important to advance our efforts to provide customers with the payment choice they are more comfortable with and have increasingly come to expect in their daily lives.” Over three-quarters of Americans (78%) say they expect to be able to use a mobile wallet.

Christopher Justice, president at Global Payments Gaming Solutions, echoes this sentiment regarding Gen Z as casino players: “The convenience offered by innovative payment solutions like mobile and contactless payments appeal more to Gen Z, who are already primed to adopt digital payment options.”

Besides convenience, Bill Miller says contactless payments have other potential uses. They can also equip players with “digital tools to help them monitor their gaming and set limits” and assist casinos in “matters of anti-money laundering and monitoring of financial transactions.”

Emerging technologies and innovations

Online casinos have come a long way since the early days of the internet. Today’s sweepstakes operators are a true testament that this evolution is going in the right direction: they are fully regulated, support responsible gambling, and let you play casino games for free.

Adopting new technologies and payment options is another step in this direction. In addition to helping create a better, more immersive gaming experience, contactless payments ensure top-notch security for players and casinos. Here is a focal point of exciting innovations:

• Artificial intelligence (AI) – Including AI technology will only improve payment processing in sweepstakes casinos, whether contactless or not. AI can automate transactions, assist, monitor for potential irregularities, and detect fraud. 
• Biometric authentication – Facial recognition and fingerprint scanning ensure contactless transactions are 100% safe and authorized. They can also assist sweepstakes casinos in identifying multiple accounts, fake referrals, and bonus abuse. 
• Payment tokenization – Tokenization enables casinos to simplify the payment process and add another layer of security around it. It is a unique payment encryption type that turns payment data into tokens so players don’t have to enter credentials each time. 
• Technological integrations – Sweepstakes casino players would hardly benefit from intelligent kitchen appliances and other IoT devices with embedded payment systems. However, they could use voice-activated payments and integrations with blockchain and crypto. 
• Regulatory technology – Online casinos use regulatory technology, or RegTech for short, to manage regulatory compliance. RegTech helps casinos protect player data and avoid money-laundering schemes regarding contactless payments.

Benefits of contactless payments for sweepstakes casino transactions

Except for the obvious—players’ support and approval—sweepstakes casinos can leverage contactless payments for other benefits, such as convenience, efficiency, and security.

Improved control and customization

Nearly three-quarters of contactless payment users (73%) cite convenience as the top reason for choosing this payment method, while 54% cite the speed of money transfer. Both are critical for keeping a gaming experience exciting and fun. Also, players simply like having multiple payment options.

Adding contactless transactions to the existing payment options could help growing sweepstakes casinos ensure competitive advantage and attract new players—whether or not they prefer paying on the go. Options give them more control and allow them to customize their experience.

Increased confidence in transactions

Having multiple payment options can increase player confidence in digital transactions. It could also encourage casino players to purchase coins, which could mean all the difference for sweepstakes operators. Contactless payments could boost their ROI.

Unparalleled security and privacy

Contactless credit cards are currently among the safest forms of payment, according to Forbes Advisor. That is because it is “incredibly difficult for a hacker to recreate the one-time code that contactless credit cards create for each transaction.” That is of invaluable significance for casinos.

Contactless payments open the door to other technological interactions, some of which we’ve discussed earlier. The adoption of AI is distinctly meaningful in this regard. Thanks to machine learning, AI could be trained to spot and prevent real-time fraud with matchless accuracy.

Better responsible gaming tools

Since casinos started accepting credit and debit cards, the primary concern has been that instant access to their banking accounts would allow players to gamble with money they don’t have. Cashless wallets enable them to set limits and track their spending.

Potential challenges and risks

Going cashless is a challenge in every industry and environment. Sweepstakes casinos have always been like that, but adopting a new payment system is tricky. These operations might face potential obstacles and risks, most of which involve data privacy concerns.

• Privacy concerns – Although contactless payments are encrypted and safe, poorly executed implementation of new technology could potentially make a casino vulnerable to breaches or other cybersecurity threats and expose sensitive user data. 
• Staying compliant – Sweepstakes casino operators must stay informed on the development of new regulations concerning online and contactless payments. There’s also the need to ensure compliance protocols that would keep evolving with technology. 
• Investing in tech – Integrating contactless transactions with existing payment systems could be costly and require expensive or long-term onboarding. That could be a significant investment for sweepstakes casinos since payments are not their primary source of income.

Impact on player experience and transaction security

The simplified and streamlined payment process behind contactless transactions can significantly improve the gaming experience. Not having to reenter credit card credentials each time they need to make a purchase allows players to enjoy the casino experience without interruptions.

Furthermore, the robust encryption and tokenization of contactless payments make tap-and-go transactions more secure than traditional methods. The state-of-the-art processing technology, often involving AI, helps protect sensitive payment information and avoid data breaches.

Future outlook and predictions

What is the future of contactless payments in sweepstakes casinos? By 2026, 81% of all payment cards will be contactless, and the number of payment-enabled smartphones is expected to grow to 99%. That will make contactless payments impossible to ignore, even in sweepstakes casinos.

The ease of use, immediacy, and unmatched security of contactless payments is superior to any past or present payment system in online casinos or elsewhere. Going contactless can catapult sweepstakes into the future, delight existing users, and attract new tech-savvy crowds.