Open Banking is a Big Deal for Online Gambling in EU

The online casino industry is always looking to test the boundaries of current and future technology in its pursuit of a better gaming experience and deeper customer satisfaction. Whether you are discussing the benefits of live streaming, increased internet speeds, mobile gaming or new financial systems – be they traditional or blockchain – online gambling experts are always deeply involved.

 Leading the Way with Open Banking

LeoVegas casino will claim an industry first by leading the charge in offering Open Banking transactions to their European customers. Payments via Open Banking are already live in the United Kingdom with 10% of all new customer opting to use this method, and plans for a European roll-out are imminent.

Gustaf Hagman, Group CEO of LeoVegas said:

"Secure, seamless and fast payments are incredibly important, and the fact that we now - through PSD2 (the Second European Payment Services Directive) - have the opportunity to directly integrate with many European banks, will provide a superior customer experience offered by security and speed"

The culmination of nearly 13 years’ worth of research and development the EU's Second Payment Services Directive (PSD2) allows for a number of exciting possibilities in the banking sector with the foremost of these being banks opening their networks securely to Third Party Payment Services Providers (TPPs).

These TPPs will themselves form niche microcosms on the networks which serve to streamline transactions between complementary businesses. Just where this technology can lead is yet to be determined but on paper, it could revolutionise banking as we know it today.

What is PSD2?

Spanish multinational financial services company, BBVA, defines it as follows:

“PSD2 is a European regulation for electronic payment services. It seeks to make payments more secure in Europe, boost innovation and help banking services adapt to new technologies.”

From this description, one would almost be tempted to draw parallels to the Bitcoin Lightning Network which aimed to create a frictionless customer to business cryptocurrency transaction process.

The reality is that PSD2 seeks to do exactly that only without the limitation of the transactions being customer to business only, and of course, without the need for interested parties to adopt new technology as this system lives on existing European banking infrastructures.

By creating a new value proposition for the EU banking infrastructure it is believed that the single payment system can take its place among recent cryptocurrency upstarts by offering a platform rich in innovation, which promises greater efficiencies and ultimately serves its customers by creating much-needed competition.