Paysafe, a leading payments platform, recently expanded its range of services tailored for the online casino market through the introduction of a new product called Pay by Bank. Announced on a Monday, this service facilitates a direct and efficient interface for U.S. iGaming enthusiasts to manage their funds. Players can now transfer money to and from their gaming accounts directly through their online banking systems, boosting both convenience and security.
Pay by Bank is integrated into Paysafe’s comprehensive Gateway payments solution, designed to provide a smoother transaction experience. This addition is particularly significant as it not only makes it easier for users to deposit funds but also simplifies the withdrawal process, enabling players to cash out their winnings directly to their bank accounts.
Zak Cutler, Paysafe’s President of Global Gaming, expressed enthusiasm about the launch. He highlighted the expected positive impact of Pay by Bank on customer conversion and retention rates for U.S. operators, thanks to the product’s transaction speed and high level of security. Cutler pointed out that this initiative is a strategic move to enrich the Paysafe Gateway, offering an array of unparalleled payment choices for American operators and their clients, all accessible through a single system integration.
The inception of Pay by Bank responds to a clear demand among U.S. players for a greater variety of payment methods. Paysafe’s initiative aligns with findings from their recent ‘All the Ways Players Pay’ report, which revealed that approximately 27% of bettors show a preference for funding their accounts through direct bank transfers. This new service should cater effectively to this significant segment of the market.
On the security front, Pay by Bank ensures that all bank transactions are indemnified, providing peace of mind and protection both for the players and the operators. By offering enhanced transaction speed and financial security, Paysafe aims to mitigate common payment issues in the 32 states where it processes payments. This includes the 18 regulated gaming markets for Fanatics Sportsbook, which recently partnered with Paysafe following its acquisition of PointsBet’s U.S. operations in November.
Additionally, Fanatics is expanding its iGaming footprint, currently active in three of the seven regulated iGaming states in the country. The launch of Pay by Bank comes at an opportune time, following a particularly favorable financial year for Paysafe in 2023. The company reported a revenue of $1.6 billion, marking a 7% increase compared to the previous year. While Paysafe did experience a net loss of $20.3 million in 2023, this was a substantial improvement from a $1.9 billion loss reported the year before. The reduction in net loss was attributed to a combination of non-cash charges and a decrease in restructuring expenses.
As of December 2023, Paysafe reported having $202.3 million in cash and cash equivalents, against a backdrop of $2.5 billion in total debt. Through this expansion in its product lineup, Paysafe is poised to fortify its position in the U.S. iGaming industry while addressing the varied needs and preferences of American players and operators alike. By enhancing the ease and security of financial transactions, Paysafe’s Pay by Bank is set to transform the gaming experience, making it more seamless and engaging for users across multiple states.
This strategic move not only serves the immediate financial interests of the company but also aligns with broader trends towards greater digitalization and user-focused innovation in the gaming sector.
News source: https://sbcamericas.com/2024/04/29/online-casino-payments-solution-paysafe/
