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Payments platform Paysafe, already a competitive processing option for online gaming sites, added a pay-by-bank option enabling online bettors to fund deposits instantly in their accounts. It also can be used for cashing out winnings.
The service, which Paysafe says carries no fees to bettors but offers a tiered pricing structure for gaming operators, can be used by operators of online sportsbooks, lotteries, and social-gaming brands that cater to domestic U.S. players. Operators also must have appropriate licensing from respective U.S. regulators, Zak Cutler, Paysafe president of global gaming tells Digital Transactions News via email. Pay by bank expands Paysafe’s gateway capabilities, the company says.
“Our product currently utilizes the traditional [automated clearing house] rails for the deposit flows and will utilize both the ACH and RTP rails for payments back to players, depending on what a specific player’s bank will support,” Cutler says. “Payment authorization is immediate to the operator and transactions are indemnified, allowing operators to instantly post funds to the players account with confidence.” RTP is the real-time payments network from The Clearing House Payments Co. LLC.
First-time users sync their checking or savings account in seconds, Paysafe says, then fund the player account in real-time. Pay by bank supports one-click payments from linked accounts for returning bettors.
Most of Paysafe’s pay-by-bank service was created in-house, though the company is working with a third-party provider to enable it to offer an indemnified service and conduct account verification, Cutler says.
Paysafe’s move comes as consumer demand for pay by bank is growing. A Paysafe white paper found that 27% of bettors prefer using direct bank transfers. “In addition to consumers being comfortable with transacting via their online bank account, our 2024 iGaming research report revealed that the top two factors U.S. online sports bettors prioritize in the payment experience is transactional speed and then security,” Cutler says. The pay-by-bank option satisfies this desire and, because most consumers trust their banks’ online-access tools, they feel reassured because they can log in to their own bank accounts to review their activity, he says.
For iGaming operators adding the Paysafe pay-by-bank method is a single integration to the Paysafe gateway. The gateway already connects operators’ cashier to Paysafe-processed card payments, its Skrill digital wallet, the Paysafecash online cash service, and third-party payment products.
