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Is Open Banking Concept Life-Changing for iGaming Payments?

23 January 2021, 11:04
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During the webinar “Transforming payments strategy with open banking”, speakers have discussed how this approach to payments can improve brand loyalty.

Is Open Banking Concept Life-Changing for iGaming Payments?

Open banking as a technology, which can revolutionize the iGaming vertical, has been considered in financial news related to the gambling industry. The analysis of customer experience and behavior while deciding on depositing on a website or choosing an operator has revealed many interesting insights. It is obvious that users want faster and more convenient payment options and are more likely to stay with gambling platforms, which can offer this. Open banking is the concept that can meet customers’ needs, provide instant payouts, and, what is important, increase their loyalty to an operator.

How can open banking solve payment problems in iGaming?

George Davis, Product Lead – Payments at TrueLayer, has explained the term “open payments” saying that it is a direct transfer from one bank account to another via open, secure, and regulated APIs. The main advantage for consumers is the safety and no chargebacks due to the biometric authentication. This creates more secure procedures for players and payments to accounts without the involvement of a middle man. Such payment interfaces are digitally native and designed for mobile. It means more than 80% of savings on card fees. In addition to this, transactions based on open banking ensure instant settlement.

iGaming

The process of going from a deposit decision to a user’s bank account is immediate with open banking. Customers don’t need to provide usernames or passwords, only a face or finger ID. Instant withdrawals have always been the main attraction for players, and with this technology, withdrawals happen in one click because they can do it directly on an operator’s website. Getting the first payout promptly is the main reason why players will come back to a website. Jim Noakes, Head of Payment Innovation, GVC Holdings/Entain, has added that the majority of customers don’t understand the term “banking days”, and 2-3-day payouts are too slow to make a player satisfied with the services.

Another advantage that makes open banking a must-have for every gambling operator is increased trust. The experts have discussed the question of the importance of white labeling to operators. Players see only two brands – an operator and bank. It is important because users trust a certain operator. Jim Noakes has said that customers’ trust is vital. The fewer people are in a chain when they trust their money, the better is.

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