Pay-by-bank transfers are a common fixture in overseas open banking systems. Americans, however, have been more inclined to use credit cards to facilitate their purchases, especially in online transactions.
The popularity of online betting has skyrocketed in the U.S. with the increasing legalislation and social acceptance of the activity. Concerns about the legitimacy of gambling websites persist, and bettors prioritize the ease and security of buying in and cashing out.
There are signs that these concerns may be diminishing, according to gaming payments processor Paysafe. Reportedly, 27% of online bettors would prefer direct bank transfers. In response to this demand, Paysafe has launched a solution for iGaming users.
This service allows bettors to fund their iGaming accounts directly from their bank without incurring any fees. The platform’s usage is funded by iGaming operators, who are expected to integrate PaySafe’s Gateway product into their offerings.
A Nascent Market
iGaming, initially a blanket term including all forms of online gambling, has split away from sports betting to become a category of its own. Now iGaming includes a gamut of online casino-based games and their offshoots.
The iGaming market was valued at an estimated $88.65 billion by the end of 2023 and is forecasted to hit $125.6 billion by 2027. Paysafe’s position in the market contributed to the company’s 7.02% year-over-year revenue increase.
While the company isn’t quite profitable yet, its net loss of $20.3 million in 2023 was a vast improvement compared to the $1.9 billion net loss incurred the previous year.
Unparalleled Choices
Paysafe’s pay-by-bank service uses both ACH and RTP rails, depending on the payment method supported by the bettor’s bank.
While concerns about online betting sites have centered around delayed or derailed payments to bettors, Gateway is also built to protect iGaming operators. All pay-by-bank transactions will be indemnified, reducing risks to operators if a bettor’s bank payment defaults. A faster payments process should also streamline the customer experience.