Since Open Banking first emerged in 2018, it has been utilised broadly across various sectors. From third-party loan providers to iGaming sites, lots of UK-based businesses have taken advantage of open-source banking to improve things for their customers.
Below, we explain exactly what Open Banking is, why it’s growing in popularity in the iGaming sector, and how it’s in keeping with the various other payment options available to iGaming customers.
What is Open Banking?
In 2018, the UK government passed Open Banking legislation designed to enable financial institutions to share customer data with approved third parties. Utilising Application Programming Interfaces (APIs), Open Banking has motivated providers across a broad range of industries to improve their services and offer better value to clients, making it much easier for them to control their finances.
Here’s what it means for the iGaming sector specifically.
Open Banking and iGaming – a match made in heaven?
Open Banking has made iGaming more accessible for customers, particularly in regards to their payment options. Thanks to Open Banking, iGaming customers can now:
- Top up their accounts seamlessly, thanks to direct payments. Customers are now no longer directed to a third-party e-payment interface.
- Receive instant payouts through direct authentication.
What’s more, iGaming customers (such as those at online casinos, sports betting sites or bingo and poker sites) are now better protected against fraud thanks to Open Banking. This is because users can link their iGaming accounts directly to their Open Banking accounts, enabling sites to weed out fraudsters and verify a customer’s personal credentials.
Customers may also benefit from effective segmentation and personalisation, as categorised transaction data allows operators to improve their service offer based on a customer’s actual gaming history.
In other words, Open Banking has resulted in a range of impressive benefits for iGaming customers, and it’s little surprise that it is becoming one of the most popular payment methods with providers and customers alike.
Open Banking providers for the iGaming sector
There are multiple Open Banking providers within the iGaming sector. One of the most prevalent is Trustly, which provides instant deposits, instant withdrawals, and pay n play options to their gaming clients.
Trustly also helps iGaming providers to manage their customer data better while streamlining their KYC (know your customer) administrative responsibilities at the same time. Many casino operators have partnered with Trustly to improve the customer experience when playing online, making it easier for their clients to instantly deposit and receive funds.
The importance of multiple payment options for iGaming providers
Only a matter of decades ago, the only way to place a bet was to head to your local bookmakers and deposit cash across the counter with a paper slip. Needless to say, all that has changed in the present day. While iGaming platforms still welcome cash deposits via debit card payments, they’re only one of many payment options available to online gamers.
In recent times, most iGaming platforms have enabled players to deposit funds into their online accounts directly from e-wallets like PayPal and Neteller. E-wallets have myriad benefits and are much easier for customers to open than bank accounts. They also come with the added benefit of being accessible in multiple currencies, providing online gamers with greater flexibility when it comes to signing up for specific platforms.
Something else that many iGaming platforms have embraced in recent times is cryptocurrencies. Lots of online gamblers favour crypto because it allows them to retain a degree of anonymity while placing bets online. Many customers that use crypto also feel that their personal data is safer when transacting with currency such as Bitcoin or Ethereum.
The bottom line is that there are so many different ways in which iGaming customers can deposit money into their accounts in the present day. And without a doubt, Open Banking providers have made the process even easier for customers and iGaming platforms alike.
The iGaming sector has come a long way from its humble beginnings in the 1990s. And thanks to recent innovations in relation to Open Banking, it’s now easier than ever for iGaming customers to deposit funds and make withdrawals instantly.
It presents iGaming customers with another viable payment option when setting up their accounts, and it is undoubtedly a technological advancement that has changed the sector for the better.