Kalin Kalinov: “We are actively contributing to the evolution of crypto payments”

In this Conversation with CoinPayments CMO Kalin Kalinov, we take an extensive look into the iGaming industry and its adoption of digital currencies in the face of cryptocurrencies. The company further outlines its own time-tested and resilient approach that allows it to carry forth despite the challenges in the sector, delivering an impactful and business-defining product that raises the accessibility of crypto payments.

Q: What is the status quo for cryptocurrency payments in the iGaming industry? Has there been a significant uptick over the last years, or are consumers and businesses still wrestling with technology?

The status quo for cryptocurrency payments in the iGaming industry has been marked by the growing acceptance and integration of digital currencies. Over the past few years, there has indeed been a noticeable uptick in the use of cryptocurrencies for gaming-related transactions with many iGaming platforms now accepting cryptocurrencies as a form of payment for in-game purchases and subscriptions. This trend has been driven by the desire for iGaming operators to provide their users with more payment options, enhance transaction security, and cater to a global audience with diverse payment preferences.

Although we have experienced a downturn in the cryptocurrency market over the past two years, the realm of crypto payments has demonstrated remarkable resilience. This is particularly evident in the iGaming sector, where we can see that cryptocurrencies have not only weathered economic challenges but have also continued to climb, defying market expectations. In fact, the iGaming industry, even amid bearish trends, has emerged as one of the fastest-growing sectors in terms of adopting crypto payments. With the recent uptick in the market and BTC reaching over $40,000 at the time of writing, we expect this trend to amplify.

As far as iGaming operators are concerned, the advantages offered by digital assets, such as their global accessibility, irreversible transactions, and instant processing, have made them an ideal choice for the high-stakes environment of iGaming. Cryptocurrencies effectively address challenges faced by traditional payment methods, offering 24/7 accessibility, mitigating chargeback risks, reducing transaction fees, enhancing fraud protection, and ensuring swift payment processing.

Consumers and businesses alike are increasingly exploring the potential of cryptocurrency payments in the iGaming sector, signaling a change in thinking in transaction preferences. The evolving nature of this technology necessitates continued collaborative efforts within the industry to address challenges and facilitate a seamless integration of cryptocurrencies into the iGaming payment landscape.

In response to the growing demand and evolving landscape, platforms such as CoinPayments are actively contributing to the evolution of crypto payments. For example, we are near completing v2 of our platform. This upcoming iteration promises an enhanced user interface, leveraging the latest technology, and will introduce innovative features to meet the evolving demands of the iGaming industry. Here at CoinPayments, our development team is continually working on technological advancements to our platform in order to deliver cutting-edge solutions to our clients.

Q: How does CoinPayments stand out from competitors and differentiate the company’s offer in this highly-competitive market?

CoinPayments stands out prominently in the competitive landscape of payment companies due to our dual role as both a crypto payment gateway and a crypto custodial wallet. The platform’s versatility is highlighted by its user base of 1M+ accounts, support for over 100 coins for payments and an extensive list of 2,000+ coins for wallet storage. Our comprehensive coverage allows CoinPayments to cater to a diverse range of cryptocurrencies, providing users with flexibility and choice that many competitors find difficult to match. This unique dual functionality positions CoinPayments as a one-stop solution for businesses seeking to navigate the intricacies of the evolving cryptocurrency market.

CoinPayments’ resilience in the face of challenges also sets it apart. Launched in the crypto space in 2013 and despite all the crypto winters, we are still here and growing. This track record of stability and adaptability contributes to CoinPayments’ reputation as a reliable and enduring player in the cryptocurrency payment sector.

CoinPayments also distinguishes itself through its global reach, offering tailored solutions, APIs, and integrations designed for specific markets such as iGaming, FOREX, and eCommerce. The platform’s commitment to low fees, starting at 0.5%, and broad coin support further solidifies its competitive edge. By addressing the unique needs of different industries and maintaining a global presence, CoinPayments establishes itself as a leader in the cryptocurrency payment space, providing a comprehensive and accessible solution for businesses worldwide, exceling in crucial areas such as reliability, security, speed, user-friendliness, and unparalleled customer support.

Q: What do you think the most compelling argument for adopting cryptocurrencies in iGaming is today and what could help consumers and businesses feel more confident? Does CoinPayments help both groups see the value of crypto payments?

I believe the most compelling argument for adopting cryptocurrencies in iGaming today lies in the potential for enhanced security, privacy, and above all, efficiency in financial transactions. In the context of iGaming, this translates to secure and verifiable transactions, reducing the risk of fraud and providing users and businesses with a greater sense of control over their funds.

It goes without saying that the speed of crypto transactions is also a significant advantage, enabling faster deposits and withdrawals compared to traditional payment methods, ultimately enhancing the overall user experience for gamers.

To boost confidence among consumers and businesses in the adoption of cryptocurrencies, it is important to address concerns related to volatility and regulatory uncertainties. Stablecoins, pegged to fiat currencies, can mitigate the price fluctuations associated with traditional cryptocurrencies, offering a more reliable medium of exchange within the iGaming industry. Furthermore, clear and consistent regulatory frameworks can provide a sense of legitimacy and protection for both consumers and businesses engaging in crypto transactions.

Platforms like CoinPayments play a pivotal role in this ecosystem by offering a user-friendly and secure infrastructure for crypto payments. By facilitating seamless transactions and providing support for a variety of cryptocurrencies, CoinPayments contributes to the wider acceptance of digital currencies in iGaming, helping users and businesses recognise the practical value and benefits of incorporating cryptocurrencies into their operations.

Q: Do you think there are just too many cryptocurrencies in iGaming right now, and does CoinPayments come to players and businesses aid to help guide them through what is a torrent of information?

The proliferation of cryptocurrencies in the iGaming industry has indeed reached a point where the sheer number of options can be overwhelming for both players and businesses. The multitude of cryptocurrencies available presents challenges such as understanding their individual features, security aspects, and market value fluctuations. This complexity can potentially hinder seamless transactions and create confusion for those looking to adopt digital currencies in the iGaming space.

CoinPayments plays a crucial role in alleviating this challenge by providing a streamlined and user-friendly platform that simplifies cryptocurrency transactions for players and businesses alike. Acting as an intermediary, CoinPayments facilitates the acceptance and management of various cryptocurrencies, offering a comprehensive solution that includes payment processing with a unified dashboard for tracking transactions. In doing so, CoinPayments helps navigate the information torrent associated with the diverse world of cryptocurrencies, offering a centralized hub that promotes accessibility and ease of use in the iGaming industry. Through its services, CoinPayments acts as a guide, enabling both players and businesses to navigate the complexities of the cryptocurrency landscape within the iGaming sector.

Q: You have repeatedly demonstrated your confidence in the sector and have committed firmly to crypto payments. What makes you so confident that crypto does indeed have a future in iGaming at a time of heightened regulatory scrutiny and doom-mongering in the sector?

My confidence in the future of crypto in the iGaming sector stems from the unique advantages it offers, despite the current regulatory scrutiny and doom-mongering, as you mention. Firstly, cryptocurrencies bring the highest levels of security and transparency to financial transactions. The decentralized nature of blockchain technology ensures that transactions are tamper-resistant and verifiable, addressing concerns about fraud and ensuring fair play within the iGaming ecosystem. Additionally, the pseudonymous nature of cryptocurrency transactions provides users with a degree of privacy, a feature highly valued by players in the iGaming industry.

To add to this, the global reach and accessibility of cryptocurrencies align seamlessly with the borderless nature of the iGaming market. Crypto payments eliminate the need for traditional banking systems, facilitating faster and more cost-effective cross-border transactions. This not only enhances the user experience for players but also opens up new markets and opportunities for iGaming operators. While regulatory scrutiny is indeed a challenge, it is important to recognize that regulatory frameworks are evolving to accommodate the growing influence of cryptocurrencies. By adhering to emerging guidelines, the iGaming industry can establish a sustainable and compliant framework for the integration of crypto payments. The future of crypto in iGaming is underpinned by its ability to address key industry challenges and capitalize on its inherent strengths in security, transparency, and global accessibility.

Q: On balance, what do you think the biggest challenge for CoinPayments future growth is and have you come up with a plan to address it?

I think the biggest challenge for CoinPayments’ future growth lies in the rapidly evolving landscape of the cryptocurrency industry. As the market becomes increasingly competitive and dynamic, staying ahead of technological advancements and maintaining a robust security infrastructure is really important for us. With new blockchain projects emerging, CoinPayments must continuously adapt to these developments to remain a trusted and innovative player in the industry. The challenge also extends to user education and mainstream adoption, as cryptocurrency acceptance becomes more widespread.

To address this challenge, our strategy involves a proactive approach to technology upgrades, ensuring that CoinPayments remains at the forefront of blockchain and cryptocurrency payment developments. This includes investing in research and development to integrate support for emerging cryptocurrencies and implementing innovative security measures to safeguard user assets. Additionally, fostering partnerships within the industry and beyond can help create a network effect, facilitating mainstream adoption and enhancing CoinPayments’ market position.

 Ongoing efforts in user education (see media.coinpayments.net) can play a pivotal role in demystifying cryptocurrencies for a broader audience and expanding the user base. In a nutshell, a multifaceted approach that combines technological agility, strategic partnerships, and user education will be key to overcoming the challenges and driving CoinPayments’ future growth.

Q: Can you make one prediction on what big change we could expect in the gaming industry with regards to crypto adoption in 2024?

In 2024, I would expect to see a significant transformation in the iGaming industry as the adoption of cryptocurrencies becomes more widespread. As blockchain technology continues to mature, more iGaming platforms are likely to embrace cryptocurrencies as a mainstream form of payment. This shift will not only enhance transaction security and transparency but also provide users with greater financial privacy. Cryptocurrencies, such as Bitcoin and Ethereum, offer the potential for faster and more cost-effective transactions, reducing the reliance on traditional payment methods and financial intermediaries. The adoption of crypto in iGaming is poised to streamline payment processes, mitigate fraud risks, and create a more seamless user experience for online gamers.

I also believe the integration of smart contracts powered by blockchain technology will revolutionize aspects of the iGaming industry. As we know, smart contracts enable automated and trustless execution of agreements, facilitating transparent and tamper-proof gaming processes. This could lead to the development of decentralized and provably fair gaming platforms, ensuring a higher level of integrity and fairness in iGaming.

As the iGaming industry continues to evolve, the incorporation of cryptocurrencies and blockchain technology will reshape the landscape, providing both operators and players with more innovative solutions. Undoubtedly, as new developments unfold, I feel the crypto payments space will be a compelling narrative to follow.