How Open Banking Will Impact iGaming and Sports Betting In Canada
As the Canadian iGaming and sports betting markets grow, technological advancements such as open banking (also known as consumer-driven banking) will change how gaming operators and players handle payments. With open banking, consumers will be able to safely share their financial data with third-party providers. This will result in faster, more efficient, and secure transactions. Here’s how it could impact the industry:
1. Faster Payments: According to a TrueLayer report, iGaming and sports betting players can withdraw their winnings instantly because of open banking in regions such as the UK. They can use the same payment method they used to deposit. This will make users more satisfied by allowing quick access to their winnings. It will also cut down on delays and rejections from traditional methods such as credit cards.
2. Improved Security: With direct access to bank-level verification, open banking will make it easier for operators to verify user identities and prevent fraud. The authentication process in open banking will add extra layers of security compared to traditional card-based methods, reducing the risk of fraudulent transactions.
3. Compliance Benefits: The iGaming industry is heavily regulated, and open banking provides operators and payment processors with real-time access to user financial data. This helps them conduct thorough know-your-customer (KYC) checks, ensuring that players meet regulatory standards, and simplifies anti-money laundering (AML) compliance.
4. Personalised Experience: Open banking will also offer personalised experiences to players. This allows for customised promotions, spending limits, and game suggestions based on player preferences, making the experience more engaging and user-friendly while promoting responsible gaming.
Open banking will offer Canadian iGaming and sports betting operators opportunities for faster payments, enhanced security, and better compliance, positioning them to remain competitive as the industry grows.
