Open banking casinos is a relatively new term you may have heard more of lately. But what is open banking, and how does it work for online casinos? This article will discuss open banking in detail and outline how it works on gambling sites. So if you’re interested in learning more about open banking, keep reading!
- Bank to bank payment casinos are relatively new to the gaming industry
- Not all local banks are connected to open banking
- It helps the gambling industry to fight fraud
- Open banking infrastructure providers help to ease the registration process
- This leads to instant withdrawals and safer gambling
Open Banking Casino List
What is Open Banking?
Open banking is a term that refers to the practice of sharing personal details with third-party providers using players’/customers’ online bank account details. This data includes transaction history, account balances, and other financial information. Open banking was first introduced in the UK in 2016 and has been slowly gaining traction in other markets.
The model relies on APIs to allow third-party providers access to customer accounts and data. Any third party can develop applications and access bank accounts if the country’s regulators have approved them.
The goal of this e-payment interface is two-fold: to increase the security and protection of client data and to promote a wider variety of payment systems. Banks cannot keep customer data to themselves with this technology.
Instead, they must share it with third-party providers to level the playing field and encourage competition. This new model has the potential to revolutionize the way we make financial transactions, and it all starts with open banking.
How Open Banking Casinos Works
Open banking casinos work by allowing the online casino to access some of your online banking data. This data is typically accessed through an application programming interface (API).
APIs allow different software applications to communicate with each other. So, in the case of open banking, it would allow a gambling site to access your data, but only the necessary data.
So ultimately, it utilizes bank-to-bank payments with the highest possible data security as well as reduce costs for iGaming companies as well as casino players. Therefore, various pros come along when playing at open banking casinos.
Understand Open Banking
- Open banking is a term that refers to the practice of sharing banking data with third-party providers.
- This data includes transaction history, account balances, and other financial information. It can also include information such as your name.
- Data is accessed through an API that helps different software communicate.
- This is beneficial at online gambling sites where it can be used to process deposits and withdrawals quick but also help the player to identify themselves and
In short: Open banking allows you to verify your identity electronically on online gambling sites while making a deposit.
Payment Methods at Open Banking Online Gambling Sites
A few payment methods use open banking to provide their services. The most famous one is Trustly, which based its whole Pay N Play casino function on this technology.
And Pay N Play has revolutionized the casino market in several ways. For example, by offering players to skip the lengthy registration and verification processes they are used to. This also helps to keep vulnerable players away from online gambling and eases a gambling block.
Did you know: Fraudulent activities are almost impossible thanks to the security that open banking presents?
Top 3 Pay N Play Casinos right now
1: Amok Casino
Collect a 10% wager-free cashback bonus every week. Instant registration and 5-minute withdrawals. Amok Casino is one of the best iGaming companies on the market, licensed på several renowned gambling authorities in the igaming industry and carries a game selection of almost 4000 casino games.
2: Happy Spins Casino
Another casino that utilizes the same method to ease the registration process for new customers is Happy Spins Casino. You can collect a welcome bonus on your first deposit with almost no effort. Claim the bonus, and you will be rewarded with 200% up to $200 + 10% daily Cashback bonus!
3: Playzilla Casino
If you want more money to play for, Playzilla casino is the right casino. By making a bank transfer (of at least the minimum deposit), you can claim a welcome bonus of 100% up to $1500 + 500 Free spins. This is a casino with huge potential, with players’ experience as a top priority.
Start Playing at an Open Banking Casino
Since the introduction of Pay N Play with the help of open banking, players can start playing in a few simple steps:
1. Pick a Casino
Pick an open banking casino of your choice. It is essential to pick an online casino with a valid gambling license. Reliable authorities license all our recommended casinos.
2. Click on Deposit & Add Amount
In this step, all you need to do is to click on deposit/start playing and enter the amount you would like to deposit.
3. Choose Bank & Confirm
Now it's time to select your bank from the list presented to you. If your bank is missing, it's not connected to the open banking system. Once you have chosen your bank, you confirm with the help of your bankID/electronic ID.
What you have accomplished:
In these three simple steps, you have:
- Created a casino account without the need to fill out any registration form
- Made an instant deposit to your new casino account
- Verified you identity
- Keeping your banking details safe
- Shared only the vital information with the online casino
Benefits of Open Banking Casinos
As you probably already noticed above, there are several benefits to open banking online casinos. The most significant impact is on the player experience, which becomes faster and easier from start to finish with the help of this method. However, there are several other benefits for online gambling sites that become part of the open banking system. Here are some:
Speed Up the KYC and the AML Process
The open banking system helps to speed up the KYC (know your customer) and AML (anti-money laundering) processes since all the necessary information is provided directly from the bank.
This means that the casino operator and the player can be sure they are playing at a safe and secure site while still enjoying a smooth and quick process. It is sort of a safer version of a no verification casino.
Reduce the Risk of Fraud
Since open banking provides casinos with all the necessary information from the get-go, players do not need to share any sensitive data with the casino.
This reduces the risk of fraud on both ends and helps create a safe and secure environment for casino operators and players.
Segmentation and Personalization
By making use of transaction data, online gambling operators will be able to learn more about players. For example, how often transactions are made and how much players spend. This will make it easier for casinos to segment players and offer them personalized bonuses and promotions.
With open banking payments, casinos and sports betting operators can offer their players instant payouts. This is because all the necessary information is already provided, and there is no need to wait for documents to verify players’ identities. You’ll find many casinos that use this tech in our instant payout casino article. You can even use this massive benefit after making a Google pay casino deposit.
Responsible Gaming with Open Banking
Open banking payments can be used to help players play more responsibly. Here the payment provider Klarna is a good example. Klarna is making it possible for banks to offer players voluntary gambling blocks.
Klarna entered the open banking space when it acquired Sofort, a direct bank-to-bank payment service, in 2014. Early in 2022, it became the first provider to integrate the UK’s first open banking-powered gambling block, developed by Monzo and Truelayer, who made the update code public.
This will allow the possibility of putting a gambling block on all Klarna-powered immediate bank-to-bank payments. This new development represents a major step forward for open banking. It demonstrates how this technology can be used to protect consumers from harmful activities like gambling addiction all over the world.
In short: Payment providers such as Klarna are making it possible to extend voluntary gambling blocks to open banking-powered payments.
KYC Made Easier with Open Banking – Your Financial Data is Safe
KYC, or “know your customer,” is a process that banks and financial institutions use to verify the identity of their customers. The KYC process typically involves collecting and verifying information such as name, address, date of birth, and national ID number.
In recent years, the KYC process has become more complex and time-consuming due to increased regulation around anti-money laundering and countering the financing of terrorism. Which is also one of the main reasons why you have to verify your casino account.
Open banking-driven payments use modern technology to make it easier for customers to share their financial data with third parties. Customers can grant banks and financial institutions permission to share their data with, for example, an online casino.
This makes the KYC process quicker and easier, as the customer’s data is already stored with the KYC provider. It allows KYC providers to cross-check customer data against multiple sources, which helps to improve accuracy and reduce fraud. We know what you think; this is much like no account casino, isn’t it?
Terms Related to Open Banking in Online Casinos
- PSD2: PSD2 (European Payment Services Directive) is a law that helps protect your banking information.
- Data API/API: API stands for “Application Programming Interface”. It is a set of rules that allow software programs to talk to each other.
- TPP: TPP stands for “Third Party Provider.” This is a company that helps banks share information with gaming companies.
- KYC: KYC stands for “know your customer.” This is a process used in the igaming industry to ensure that people are who they say they are.
- AML: AML stands for “anti-money laundering.” This is a process that casinos use to make sure that people are not using their casinos to launder money.
- GDPR: GDPR is a law that helps protect people’s personal information. It stands for General Data Protection Regulation.
While open banking has made gambling at online casinos safer and more accessible, it also has the potential to help players block themselves from gambling. If you are looking for a safe and easy way to gamble online, look for casinos that offer open banking technology, for example, Trustly casinos. With this type of technology, you can share validated information from your bank with the casino of your choice without having to register or verify yourself. Making it easy to make transactions using Payment Initiation services.