Two of the world’s leading payment technology providers, Paysafe and Worldpay, have announced that they will launch a new partnership to provide digital payment solutions for companies offering sports betting in the US.
The two companies will be pooling their experience in the gambling sector and their wide range of payment solutions to reduce operating costs for providers and offer a seamless experience for players.
More payment options
It is thought that the collaboration between Worldpay and Paysafe will allow US-based sports betting operators to offer a broad range of payment methods. The companies offer solutions from different backgrounds, with Worldpay’s portfolio focusing more on treasury and payment solutions, while Paysafe operates specifically within the gaming space.
As the sports betting market is just starting to open up in the US, the duo hopes to provide operators with effective solutions. They will work to offer tailor-made payment platforms for companies in the US following the legalization of the activity earlier this year.
The pair has said that their collaboration will seek to provide companies with the most effective payment solutions to improve customer experience and increase client retention rates.
Card processing and online wallets
Worldpay and Paysafe will offer credit card processing platforms, online wallets, cash payment solutions, and near-instant push-to-card payouts, all of which will provide “seamless connectivity, via a single point of integration, to wide-ranging payments solutions and services” and will be adapted to the US market.
Joel Leonoff, president and CEO of the Paysafe Group, said: “Through this partnership, Worldpay and Paysafe will be able to champion the needs of US iGaming operators and their players by providing a secure, cost-effective and highly configurable payments platform that delivers an unparalleled player experience.”
He added: “Our innovative approach means we can support all transactions, no matter how the player wants to pay. We’re very excited to once again get behind a new and growing sector.” The move indicates that the companies believe there will be growth not only in the physical sports betting market but also with online betting operators based in the US. This news will no doubt be welcomed by who support the legalization of sports betting at a state level.
A slice of a $170bn industry
The U.S. gambling market is currently valued at $170bn (£133.5bn), and the American Gaming Association believes sports betting could add up to $150bn (£118bn) in revenue, giving it the potential to become the biggest sports betting market worldwide.
Shane Happach, head of Global Enterprise eCommerce for Worldpay, said of the partnership: “As a leading payments provider for iGaming companies, state lotteries and land-based casinos, Worldpay is excited about the enhancements this partnership will bring when it comes to maximizing payment acceptance, enabling new digital wallets, as well as minimizing fraud risk and lowering cost. Our combined strengths and capabilities will simplify payments for gaming operators, while also continuing to show our attentiveness to responsible gaming and our mission to protect the integrity of every transaction.”
Rhode Island has become the latest state to legalize sports betting, where bets are being taken at the Twin River Casino. The government views legalization as a way to generate revenue to allow states to become more self-sufficient. State Senator Dominick Ruggerio (Dem.) said in a statement: “Sports gaming provides the state with revenue that offsets reliance on taxes to support essential state services, such as education and fixing roads and bridges.”
Rhode Island will reportedly receive 51% of sports gaming revenue, while the vendor will receive 32%, leaving just 17% for the casino. The terms of these operating agreements led to a delay in legalizing sports betting in the state, which was due to take place in October but was pushed back to this month.