It’s been 20 years since PayPal went public through an IPO in 2002, and last year the US fintech company was ranked 134th on the 2021 Fortune 500 list of the largest companies by turnover in the United States. Through various acquisitions, such as the purchase of Bill Me Later, an online credit product that the company rebranded as PayPal Credit, and the expansion of its mobile app capabilities for Android and iOS, PayPal has become a staple in the market for online payment systems. However, the company’s success is not entirely due to the evolution of its business model. This is partly related to the widespread adoption of PayPal in other profitable sectors, such as the online gambling market.
Using PayPal in Online Gambling
Online gambling has grown in popularity and analysts predict that the global market will be worth over $100 billion by 2026. For perspective, the global online casino industry was worth around $66 billion in 2020. With the growing number of player demographics entering the market, online casino operators have also changed their business models to accommodate different customer needs and interests.
One of these interests relates to online payment systems. That’s why dozens of online casinos have started offering players the ability to deposit and withdraw money using PayPal in addition to using traditional credit cards like MasterCard and Visa. This not only applies to online casinos that offer classic table games like poker and blackjack, but players around the world can also use PayPal as their primary form of payment for playing. online bingo as well as video slots like Rainbow Riches, one of the most popular slot game franchises in the world.
This adoption of PayPal in industries like the online casino market has allowed the fintech company to reach a new audience, which in any business is crucial to maintaining a competitive edge. The global online payments market was worth $6.75 trillion in 2021 and is expected to grow to around $12 trillion by 2027 as more e-wallets and payment solutions enter space. We can even say that online casinos also benefit from this adoption of PayPal. Indeed, PayPal is one of the safest, fastest and most secure payment services available, which means players don’t have to worry when making deposits or withdrawals. This added security contributes to the overall rating of an online casino.
PayPal’s future growth plans are unclear, but we know the company hasn’t slowed down in terms of innovation. For example, in 2021, the company launched a new consumer app covering cryptocurrency use cases. The app, dubbed a “super app”, includes a wallet that handles crypto payments. Interestingly, cryptocurrency payments have also increased in the online gambling industry.
Even though PayPal has been operating in the corporate world for decades, the influence and power of the company is just beginning. This is partly due to PayPal’s business model, but also to markets like the online casino industry embracing the technology.