In an industry first, online gambling operator LeoVegas has begun rolling out payments via open banking under the EU’s Second Payment Services Directive (PSD2), the company confirmed Monday.
It said that the move would result in “even more secure and faster payments” for its players and in “lower transaction costs and a reduced dependents” on third-party payment service providers for the gambling operator itself.
Open banking is one of the most important aspects of the PSD2 as it involves actors opening up and sharing information with each other. This makes it possible for business models to be coupled together and build a new ecosystem for payments that offers improved value for consumers.
The revised Payment Services Directive (PSD2) was introduced to modernize Europe’s payment services sector in a manner that benefits both businesses and consumers. The updated directive aims to promote the development of innovative and more secure digital payments and to also improve the level-playing field for payment service providers, including ones that serve the gambling industry.
Among other things, the PSD2 introduced new strict security requirements for electronic payments initiation and their processing. The directive obliges payment service providers, including banks, to apply strong customer authentication when an electronic payment transaction is initiated.
Providing Superior Customer Experience
Commenting on the launch of payments via open banking, LeoVegas CEO Gustaf Hagman said that “secure, seamless and fast payments” are extremely important and that the fact that they are now able to directly integrate with a number of European banks under the PSD2 will help them provide “a superior customer experience by security and speed.”
Mr. Hagman went on to say that initiating and carrying out transactions via open gaming is “considerably more cost-effective” compared to conducting transactions via traditional digital payment methods.
The LeoVegas CEO further noted that there has been a high level of activity in their product and technology development department and that they are excited to see how all of the innovations they deliver resonate with their customers.
Mr. Hagman also expressed confidence that the open banking payment solution will change the entire payments industry in the years to come.
LeoVegas said that the UK is the first of its core markets it has launched open banking payments in via its proprietary technology. Customer data from the first several weeks since the solution was first rolled out showed that 10% of all their new UK customers have chosen to initiate payments via open banking.
The solution is set to be launched across several of the gambling operator’s core regulated markets in Europe in the coming months.
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