Trustly Regulatory Service: Open Banking and Online Gaming

Open Banking is a relatively new concept in the United States, although across the pond in Europe, like many other things, it has been regulated since 2018 under the Second Payment Services Directive (PSD2). The aim of Open Banking and PSD2 is to increase competition and choice for consumers.

But what is Open Banking exactly? The term generally refers to how banks can make data and services available via application programming interfaces – or APIs –  to authorized service providers and third parties who act on behalf of the consumer who owns the bank account. In a nutshell – it provides consumers more control, visibility, and opportunities over their financial history and data in a secure and automated manner.

For online gaming, providers such as Trustly can connect directly to a player’s bank account, securely access financial and identity data, and make direct payments and withdrawals. It’s important for online gaming operators to know and understand how they can use Open Banking to elevate their offerings.

Here are three key ways that Trustly leverages Open Banking to help gaming operators:

1. Fraud prevention

By connecting directly to a player’s bank account and utilizing safe and secure payment rails, such as ACH and EFT, Trustly is able to obtain rich data and anti-money laundering (AML) and know your customer (KYC) verification on players.  This data enhances the ability to prevent fraud and ensure compliance with AML and KYC regulations.

2. Instant Funds

Direct access to a player’s bank account also permits instant payins and payouts. This creates a frictionless payment experience for the players, allowing them to rest assured their deposits and wins are moved safely, securely, and instantly.

3. Acquisition and Retention

With a seamless interface and instant funds, more players can be acquired and retained by the operator. User research even suggests 80 percent of players would increase deposits with an operator if they were provided instant withdrawals.

As Open Banking continues to mature in the U.S., data accessed by player accounts can also shed light on understanding a player’s gaming spend, their preferences, and how they interact with the gaming platform. In turn, this data would aid operators to catch vulnerabilities and enhance responsible gaming measures.

Consumer behavior is constantly evolving and harnessing the information Open Banking provides can be a game-changer for an operator. Trustly is proud to be a leading provider in this space and offer these key services.

If you are interested to learn more about the North American gaming market and about what Trustly can do for your business, don’t hesitate to continue the conversation, get a demo, or chat with our team.