Tag Archive : credit

UK credit card ban a positive move but “overrated”

The UK credit card gambling ban is “overrated” because other payment methods are more popular, according to a payment provider executive.

In January, the Gambling Commission announced a ban on consumers being able to use credit cards to gamble in the UK, coming into effect from 14 April, with its own stats showing 22% of the 800,000 who use credit cards to gamble are classed as problem gamblers.

But Board Member of PXP Financial Kamran Hedjri believes, while the ban is a positive move, its impact is limited because players generally tend to use other payment methods to gamble instead.

According to research by PXP Financial into the payment habits of different generations, 55% of those surveyed at ICE London believe the ban will have a negative effect on the industry.

The research focused on Generation Z, those born from 1997, Millennials, 1981-1995 and Generation X, 1965-1980. It showed 59% of Generation X use credit cards to gamble, with millennials the bigger users of debit cards,  49% using it as their primary payment method.

In total, 67% of Generation X thought the credit card ban would have a negative impact on the industry.

More than 45% of respondents across the generations used debit cards as their main method for gambling, rising to 53% adding in various payment forms such as mobile wallets.

Speaking to Gambling Insider, Hedjri said: “The credit card ban is overrated because we don’t think this is going to be a big thing as there is a sense in the industry cards used are not predominantly credit cards; a lot of them are debit cards.

“The credit card ban will make a difference but customers will divert to alternative solutions such as bank transfers and so on. There’s only a small amount of cards that are actually credit cards.

“The customers have got a way to find a solution that they don’t use a credit card and they can use other means that are more fit for purpose for a regulatory framework.

“I think it’s a good move for the industry and nobody should bet on credit. It’s a positive thing and we support that and we think it’s a good approach.”

Elsewhere, the research showed Generation Z is yet to have a huge impact on online gaming and millennials are still the biggest spenders when it comes to online gambling.

Generation X Members Most Likely to Use Credit Cards to Gamble

Generation X, those born between 1965 and 1980, is the demographic cohort that is more likely to use credit cards for gambling purposes as opposed to millennial gamblers, according to a new research by payment services provider PXP Financial.

PXP Financial surveyed a group of delegates at this year’s ICE London gambling industry conference. The payments firm used the interviews it conducted as the base for its ‘A conversation about payments: Differences in generational betting’ paper.

The recently conducted research found that the majority of Generation X members (59%) use credit cards to gamble.

On the other hand, millennials, that is to say those born between 1981 and 1996, are most likely to use debit cards for gambling purposes. About 49% of all of PXP Financial’s millennial respondents said that debit cards were their primary payment form when it came to gambling.

This rose to 53% when the payments firm included the use of debit cards through eWallets. In comparison, only 29% of all surveyed Generation X members said that they used debit cards to place bets or play at casinos.

PXP said that the Generation Z demographic cohort is yet to have a major impact on the online payments and gaming sectors. However, the payment services provider said it believes this will change over time.

Looming Credit Card Ban

The results from PXP Financial’s survey are revealed just days before the implementation of a credit card gambling ban in the UK.

Among the respondents at ICE London, 55% said that the looming ban would have a negative effect on the gambling industry. Among the Generation X members who participated in PXP Financial’s survey, about 67% said that the credit card gambling ban would have a negative effect on the sector.

It was in January when the UK Gambling Commission announced that a ban on the use of credit cards for gambling purposes would be introduced. The new rule is set to take effect on April 14 and aims to reduce gambling-related harm and protect vulnerable people.

Millennials are the group that spends the most while gambling, according to PXP Financial’s survey. About 52% of the survey’s respondents said that those born between 1981 and 1996 were the biggest spenders when it came to gambling.

However, at 33%, the majority of Generation X respondents said they believed their own generation was the one that spent the most on gambling.

Commenting on their recently released paper, PXP Financial CEO Koen Vanpraet said that it is their goal to “understand trends within various markets and how they will affect our clients.”

He added that they hope the insights provided “within this sentiment research will provide the industry with greater understanding of its target groups and help our clients with their market strategies.”

Source: How different generations pay for online gambling revealed – and UK credit card ban is bad news for Gen X

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Credit Card Ban to Have Big Impact on AUS Gambling Industry, Bookmakers Warn

Australia-facing sports betting operators say a ban on the use of credit cards for online gambling could have a devastating impact on wagering turnover and could come as a big hit to the nation’s racing industry.

Bookmakers responded to the Australian Banking Association’s call for views on the use of credit cards for gambling purposes and whether certain restrictions should be introduced.

The UK Gambling Commission announced early this year that a ban on credit card gambling would be implemented from April. The looming ban in the UK prompted discussions whether Australia should follow suit.

However, Australian-facing sports betting operators argue that the UK and Australia are two completely different markets and while the credit card ban in the former might not have a massive negative impact on the industry, that would not be the case in Australia.

The Australian Banking Association called in December for public views on “the place of a credit card and its use for gambling.” In Australia, credit cards can only be used for placing online sports bets. They cannot be used at retail gambling facilities.

The banking association invited community members to voice their opinion on whether the use of credit cards for gambling should be prohibited or restricted and how this would affect the bookmaking industry. Everyone willing to share their views with the association had until March 4 to do so.

What Bookmakers Say

Dean Shannon, Chief Executive of Ladbrokes Australia, said that Australian racing, which is driven by wagering turnover, will see a more than 30% decline in wagering volume if a credit card ban is introduced. Mr. Shannon went on that he thinks such a ban “would be quite short sighted and the flow on effects that would spin the racing industry into decline.”

The executive also pointed out that “a ban would primarily effect social punters because those are people who are used to buying online with a credit card for convenience in Australia.”

According to Tabcorp, Australia’s biggest bookmaker, a ban on the use of credit cards for gambling would limit significantly the choices available to the majority of betting Australia who wager within their means.

Tabcorp also expects that if a ban is implemented, that would result in a reduction in distributions to the nation’s racing industry by more than A$10 million annually.

Another wagering operator responded to the Australian Banking Association’s call for views by saying that about 80% of its customers use credit cards to place wagers because of their convenience.

In its call for opinion on potential credit card restrictions or an outright ban, Australian Banking Association CEO Anna Bligh said in December that banks have “an important role to play in helping tackle the issue of problem gambling” and that the banking industry has been “assessing a number of options to help tackle problem gambling.”

Source: Bookies warn ban on credit cards online will hit racing

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Withdraw Bitcoin to a credit card in Lumi Wallet

Now it is possible to withdraw crypto to a credit card in Lumi Wallet and the first transactions come with lowered fees!

There are a couple of crypto wallets that position themselves as all-in-one solutions for cryptocurrency operations. Lumi Wallet, after the latest update, is one of a few to actually withstand those claims, allowing both the purchase and withdrawal of crypto to a credit card.

Why does it matter?

Basically, wallets were developed to make interacting with your crypto assets easy. You hold your currencies, transfer them, exchange them, and that’s it. Such basic functionality is provided by any wallet on the market, but the game changes when fiat-to-crypto transactions come into play.

As more and more users want to easily buy and withdraw crypto to a credit card, it becomes a challenge for wallet developers to provide such functionality:

Firstly, the wallet needs to be technologically developed enough to provide and sustain such functions.

Secondly, it has to receive the credentials and licenses needed to interact with banks and card issuers.

This presents a major obstacle for many wallets.

Fortunately, Lumi Wallet has passed the test of technology and institutional trust and now it is possible to not only buy crypto in-wallet but also to withdraw it to a credit card in the currency of your choice.

How to exchange crypto to fiat in Lumi Wallet?

The process is quite simple:

First of all, install the iOS/Android application.

After opening an existing wallet or creating a new one, follow these instructions:

  1. Enter the amount of money you want to withdraw.
  2. Enter your email and check the inbox to verify it.
  3. Fill in card details and confirm your ID.
  4. Wait for an email to confirm your withdrawal.

That’s it – your crypto is on the way!

The issue with anonymity

Some users might say “But Lumi positions itself as an anonymous wallet, how does it link with KYC verification?”. The answer is that during the process of withdrawing crypto to a credit card, you aren’t sharing any new information with the Lumi application – all the operations connected to the verification process are performed through Simplex externally.

Unfortunately, there is no legal way to avoid this procedure if you want to use your credit card, but partnering with a trusted verification provider, Lumi makes sure that it allows you to still have full comfort of using familiar payment methods without compromising your personal data in-wallet.

Good news for early birds!

And for those who will use the wallet to sell crypto right after the update, Lumi Wallet has prepared a nice offer: for the first couple of weeks there will be no fee from Lumi Wallet’s side, so if you want to make gains – there is no better time!

Stay tuned with Lumi

Lumi Wallet is an actively developing crypto wallet, so we recommend you subscribe to their twitter to never miss an update or giveaway. Also, Lumi’s team writes a lot of useful articles about crypto on their lively blog that is definitely worth checking out if you want to learn more about the crypto space.