Mazooma, a fintech gaming company, has partnered with Plaid, a financial data network powering thousands of digital apps and services, to bring an Instant Bank Transfer payment solution to igaming and sports wagering operators in certain regulated US states. The offering is now available for deposits and withdrawals on BetMGM’s cashier with Borgata and Party Poker going live in the coming weeks.
“Partnering with Plaid, Mazooma will maximize conversion for our merchant clients by making it even faster and easier for players to fund their accounts,” said Dave Roe, Mazooma’s Chief Operating Officer. “Plaid’s optimised user interface and US bank connections are an ideal complement to Mazooma’s ACH processing platform, risk management features and compliance protocols.”
The online gaming and sports wagering industry has experienced steady growth since PASPA’s repeal in 2018 and has flourished during lockdown despite hiatuses from the NFL, NBA, NHL, and MLB. In the past two years, approximately 75% of US states have introduced legislation to legalise sports wagering, with sports betting legal in one form or another in 24 states.
“Partnering with Mazooma will help streamline account funding and reduce fraud for gaming companies and their players,” said Lowell Putnam, head of partnerships, Plaid. “Plaid’s consumer-permissioned data network will also support Mazooma’s merchant customers with state expansion initiatives as the industry continues to grow and can help support responsible gaming initiatives for consumers.”
Because of low credit card acceptance rates, ACH represents approximately 35% of gaming industry payment volume, which is estimated at more than $150 billion for sports wagering alone. The product leverages Plaid’s connections to more than 11,000 financial institutions in the US and Mazooma’s proprietary risk management features to provide the fastest, safest, most user-friendly ACH payment method in the market.
Mazooma’s Instant Bank Transfer product is available to current Mazooma operators through their existing integrations and is expected to roll out to its full roster of clients by the end of 2020.