Enjoying online shopping in Europe with SOFORT payments

Online purchases are currently one of the best and most convenient way for people to get their shopping done and do what they wish on the internet. iGaming heavily relies on digital payments, and German payment systems effectively meet the needs of European players. One of the bigger payment gateway services in the country is SOFORT for those who want to get their online casino fix from their mobile phones.

Acquired by a Swedish payments company called Klarna in 2014, SOFORT is still preferred by many merchants and specifically iGaming companies because of the easy payment integration and high popularity level. With simple fee structures per transaction and a user-friendly interface, this payment method easily enters payment information. It has been essential for any online casino looking to operate in the EU market. 

With that, let’s look into how SOFORT has worked for the online shopping scene and why it’s so embedded in German payment ecosystem.

SOFORT: Bank transfers that have gone digital

For many, the choice of payment method is affected by preference and ease of access. Who would want to open many banking apps just to buy something online or load up iGaming accounts? With SOFORT, transactions are a snap for customers within the territories of Austria, Germany, Belgium, Italy, Spain, the Netherlands, and United Kingdom with plans of expansion still being discussed. Accepting EUR or the European Euro as its default currency, SOFORT as a payment method makes cross-border transactions less taxing compared to other payment services.

Some features that SOFORT has include: fast transactions and a risk-free payment guarantee. What this means is that Klarna, the parent company of SOFORT, assumes all fraud and credit risks for sellers and guarantees that whatever sales are made in-system will be honored. With promises like that, it's now a wonder why it ranks highly among German payment systems. Another safety feature of this payment method involves it acting more like a bank transfer, contacting the user’s bank network with pre-filled information. 

For iGaming purposes, payment integration is simple with the application being able to connect with many common sales APIs and even the option for automatic installation into the storefront. Manual installation is still possible for those who have more customized tastes for their storefront. Either way, all of this should be able to connect seamlessly to your chosen partner for payment processing for iGaming businesses.

Pros and cons of SOFORT payments

As with any payment method rundown, detailing the pros and cons of the service helps clear the air. For both small and medium enterprises, the accessibility of this payment provider helps finances in check and cash flow moving. Even users can get a lot out of the payment method because of “recognized online banking”. Payment information can be saved for future use, shortening the time between the checkout page and confirmation!

Here are some pros of this payment gateway:

• Risk-averse systems: Once again, SOFORT assumes all risk once a transaction order is received and the system receives an order to pull funds out of the payee’s bank account. Payment integration is also simple and doesn’t expose private data to any institution that isn’t part of the transaction process.
• Security and authentication: With assistance from its parent company, this payment gateway hosts a so-called “risk engine” that helps sift through transactions and confirm legitimacy. German payment systems prioritize security, featuring anti-fraud measures designed for higher-risk purchases. These measures utilize data from third-party vendors and other sources to enhance protection.
• Speed and ease: German payment systems emphasize hastening the experience and this one takes the same route. Its ability to authorize bank transfer transactions makes the process simple, condensing the payment processing for iGaming into one API for instant payments as well as instalments.

Cons are always a part of any payment gateway and this one is no exception. To provide you with the fair overview we list them too:

• EU banking accounts: It should be placed on your online casino checkout page that German payment systems require an EU Banking Account and a SOFORT account to authorize payments. It also should be noted that this payment provider is exclusive to the aforementioned countries (Austria, Germany, Belgium, Italy, Spain, the Netherlands, and the United Kingdom).
• Chargeback fraud: Fraud in the online casino scene is something that anyone should look out for. Although it is mostly safe, its purchase protection program can be a difficult thing to dispute if any customer initiates a chargeback or recall their payment. Like similar German payment systems, the service’s parent company will be the one to determine whether the claim is legitimate but any expended transmission fees during the case will not be refunded.

Evolving online shopping experiences in Germany

Within Germany, online shopping is a growing field and it keeps getting bigger as time goes by. New German payment methods are being introduced to customers every day, such as for example new method Wero. With around 80% of Germans doing some form of online shopping and around 79.7 billion euros in online sales last year, the market is definitely there. However, getting German customers into the online casino scene is hard and trust must be earned through the user experience. Getting the best software for payment integration will be key to getting your foot into the market.

Are you looking to elevate your UI for user transactions integrated with German payment systems? Want some help innovating on your existing payment routing system? Consultations from professionals are a great way to check if your ideas are sound or if any alternatives are available. Monoup is the firm that is meant for you and your online casino business! Contact us on our official website or read our blog for more information about improving your payment schemes.