What Really Matters in iGaming Payment Processing | CatalystConversations with Svilen Pavlov, PayModum

When it comes to iGaming payment processing, few people have seen the full operational picture like Svilen Pavlov.

After more than a decade on the merchant side, leading global payment operations for iGaming and FX brands across Europe, LATAM, Southeast Asia, China, Australia, and India, Svilen has operated at scale. He grew volumes from zero to over €100 million per month, built complex multi-PSP environments, and managed the realities of high-risk payment processing, from payout delays to sudden risk freezes.

Today at PayModum, he helps operators design smarter iGaming payment setups by matching them with vetted PSPs and acquirers based not only on pricing, but on measurable performance.

In this CatalystConversation, our Head of Business Development, Ivan Milpetrov, spoke with Svilen about what truly defines a strong PSP relationship, how to structure a resilient iGaming payment setup, and what operators must rethink to future-proof their payment processing stack.

Watch the full conversation

Prefer watching the discussion? You can view the full CatalystConversation with Svilen Pavlov below.

The Expectations Gap in iGaming Payment Processing

Ivan: You've worked on both sides, as a merchant running iGaming payment operations and now advising on PSP selection. What is the biggest disconnect you still see?

Svilen: Merchants expect proactive partnership. Most PSPs still operate reactively.

In iGaming payment processing, communication is critical. Maintenance windows are not always communicated properly. Approval rates can drop without warning. Merchants are often left diagnosing issues themselves.

Many PSPs still provide infrastructure rather than true partnership. Account managers are overloaded. When you are scaling an iGaming payment setup across multiple GEOs, lack of proactive support becomes a serious operational risk.

Operators are more aware today after experiencing sudden account terminations or acquiring restrictions. But structurally, the industry has not fully evolved yet.

Building a Resilient iGaming Payment Setup: Optimize First, Then Diversify

Ivan: When designing a multi-PSP strategy for iGaming, how do you decide whether to optimize or add another provider?

Svilen: Always start with the data.

Before expanding your iGaming payment setup, you need to understand what is underperforming. Is it routing? Is it BIN-level approval? Is it a specific issuing bank? Many operators jump to adding a new PSP without fully optimizing their existing integrations.

If operational processes, routing logic, and integrations are already optimized, then it makes sense to evaluate additional PSPs or acquirers.

From day one, though, I recommend at least two acquiring relationships. iGaming payment processing is high risk by definition. Redundancy is not optional.

For a medium-sized operator processing €1–5 million per month, multiple PSPs are essential. Too many merchants are reactive. They only look for alternatives once a problem occurs. But in high-risk industries, Plan B and Plan C must already be live before the issue happens.

A strong iGaming payment setup is built on proactive redundancy, not reactive firefighting. This becomes especially critical during major events — as we explore in our World Cup 2026 payment guide, a surge of first-time deposits can trip a single acquirer's risk limits overnight, making pre-built redundancy the difference between capturing peak volume and losing it.

What Actually Drives Performance in iGaming Payment Processing

Ivan: Operators obsess over fees. What should they focus on instead?

Svilen: Approval quality, not headline approval rates.

Blended approval rates are misleading. A provider may show 90 percent overall approvals, but that hides performance gaps across GEOs, device types, issuing banks, and time-of-day patterns.

In iGaming payment processing, BIN-level analysis is critical. If certain BINs or banks are underperforming, that impacts revenue far more than a small MDR difference.

Lowering MDR by 0.5 percent is irrelevant if your approval rate drops by 3 to 5 percent. The revenue loss from failed transactions outweighs marginal pricing improvements.

Another misconception in iGaming payment setup is payment method quantity. Offering ten payment methods in a cashier does not guarantee higher conversion.

Players focus on the first visible options. If the locally preferred methods are not prioritized correctly, conversion suffers. I call it method fatigue. More options are not better. Relevant options convert.

In high-risk payment processing, performance data always matters more than marketing claims.

Expanding iGaming Payment Processing Into New GEOs

Ivan: What do operators underestimate when expanding into new markets?

Svilen: Understanding the end users.

Many operators think translating a few buttons or using automated tools is enough to localize their iGaming payment setup. It isn’t. Generic translation does not make payments feel local or trustworthy.

You need to understand how players actually behave. How do they usually deposit? What triggers a payment? What feels familiar in the UX?

When a PSP says, “We offer the top three methods in India or Malaysia,” that’s just the starting point. You still need to evaluate the user experience, use proper native translation, and adapt the flow to local habits.

It goes even deeper. Operators should analyze when users receive salaries, when peak deposit times occur, and ensure PSP maintenance windows do not overlap with those moments. In some Asian markets, local payment methods have scheduled downtime. If that clashes with peak hours, approval rates drop immediately.

Strong iGaming payment processing in new GEOs is not about adding methods. It’s about understanding behavior and aligning UX, timing, and infrastructure accordingly.

The Future of iGaming PSP Relationships

Ivan: Where is the industry heading?

Svilen: Automation and orchestration will standardize the technical layer of iGaming payment processing.

Payment orchestration tools are becoming more common. Routing logic will become smarter. Technical infrastructure will increasingly look similar across providers.

What will differentiate PSPs is data transparency and relationship quality.

When technology becomes commoditized, clean reporting, actionable performance data, and honest communication become strategic advantages.

Throughout my career on the merchant side, the most valuable asset was not an API. It was trust. When something breaks at scale in a high-risk payment setup, you need a partner who answers the phone and understands your business model.

Payments are a people business operating inside a technical framework. The PSPs who understand that will remain relevant long term.

Final Thoughts

Svilen's perspective offers a reality check for an industry caught between buzzwords and bottom lines. Successful payment operations aren't built on the cheapest fees or longest feature lists, they're built on trust, transparency, and genuine understanding of what makes each market tick.

His message is clear: stop optimizing for the wrong metrics, start asking harder questions upfront, and remember that when things go wrong at 2 AM, it's not your API documentation that saves you, it's the person who picks up the phone.

 

Looking to optimize your payment operations or navigate the complexities of high-risk acquiring? Connect with CatalystPay to explore tailored solutions for your business.