PaySafe Debuts Pay-by-Bank for Online Gaming

Payments company PaySafe has introduced a pay-by-bank offering for online gamblers.

The new solution lets online bettors in the U.S. secure funds instantly at operators’ cashiers directly from their online bank account, according to a Monday (April 29) press release.

This product expands the capabilities of Paysafe’s Gateway, the company’s iGaming payments solution, and was added “to respond to the growing demand from U.S. players for payment choice,” PaySafe said in the release.

“Leveraging Paysafe’s single-integration Gateway, U.S. online gaming operators can now offer Pay by Bank to their customers, giving first-time users the ability to sync their checking or savings account in just seconds, then fund their player account securely in real-time,” the release said. “For returning bettors, the process is even easier, with Pay by Bank supporting one-click payments from linked accounts.”

PaySafe says winnings can also be withdrawn from players’ sportsbook accounts, with Pay by Bank allowing rapid payouts directly to linked bank accounts through a single click.

The launch comes at a time when online gamers are expressing frustration with the speed at which they can access their winnings.

Research from “Generation Instant: Gamers and Winnings,” a PYMNTS Intelligence report created in collaboration with Ingo Payments, found that in spite of the growing popularity of online sportsbooks and online gaming, instant payout options remain relatively rare.

“With so much of this action happening online, one might assume cash would be less of a winning payout option and digital payouts would be the rule,” PYMNTS wrote last week.

However, the research found that “instant payouts can be delayed — sometimes up to a full 24 hours, which understandably results in customer frustration.”

Participants in the survey said they wanted online gaming services to offer the same instant payouts and ease of moving money from one game to the next that could be found in old-school casinos. The data showed many gamers interested in streamlined payments, with 79% saying they were in favor of instant disbursements.

Meanwhile, additional research by PYMNTS Intelligence shows that pay-by-bank — also known as account-to-account (A2A) payment — is growing in popularity.

Thirty-six percent of U.S. consumers use this payment method, according to findings from “Tracking the Digital Payments Takeover: Consumer Familiarity Controls Account-to-Account Payment Growth.”

“Convenience also plays a role in consumer satisfaction with A2A payments, particularly in peer-to-peer (P2P) use cases, according to the study,” PYMNTS wrote in February. “Platforms like PayPal, Venmo and Cash App provide user-friendly experiences, leading to high satisfaction rates among more than 60% of A2A payment users.”