If you run an online gaming or gambling business, you already know the road is never smooth when it comes to getting paid. iGaming businesses face challenges at every turn – from banks refusing accounts to payment providers cutting off services overnight. One of the newest and most promising technologies in the payment world, open banking payments, offers both exciting possibilities and some stubborn obstacles for gaming merchants. In this post, we break it all down in plain language and show you what actually works.
What Is Open Banking and Why Does It Matter for iGaming?
Open banking for payments is a system that lets customers pay businesses directly from their bank accounts – no credit card, no middleman, no extra fees. Think of it like sending a bank transfer, but faster, smarter, and built into a checkout page. Instead of typing card details, a player logs into their bank app, approves the payment, and the money moves almost instantly.
For iGaming operators, this sounds like a dream. Lower fees compared to card processing, instant settlements, fewer chargebacks, and a smoother experience for players. But the reality is a little more complicated.
Why iGaming Businesses Face Challenges with Open Banking Payment Providers
Even though open banking payment providers are growing fast across Europe, the UK, and beyond, many of them simply will not work with iGaming merchants. Here is why:
1. Heavy Regulatory Scrutiny
Online gambling is a licensed, regulated industry – but the rules differ from country to country. Open banking payment providers that serve mainstream retailers often do not want to deal with the compliance burden of gambling licenses, age verification, and anti-money laundering (AML) requirements. So they simply exclude the iGaming category from their terms of service.
2. Bank-Level Blocking
Even when an open banking payment solution is technically available, individual banks can block transactions to gambling merchants at the account level. Some banks in the UK and EU have introduced gambling block features that let customers opt in – and those blocks apply to open banking just like they do to cards.
3. High-Risk Labeling and Processing Restrictions
iGaming sits firmly in the high-risk category for payment processors. This is not just a credit card problem. High risk payment processing companies — whether they handle cards, bank transfers, or open banking – charge more, have stricter terms, and sometimes close accounts without warning. Open banking is no exception. Many open banking providers apply the same risk logic and turn gaming merchants away.
4. Chargeback and Fraud Concerns
Although open banking payment transactions are generally harder to dispute than card payments, fraud and friendly fraud are still concerns. iGaming merchants see players claim transactions were unauthorised after they have lost money, creating headaches for payment providers who would rather avoid the industry altogether.
What Does This Actually Mean for Your Business?
If you are an iGaming operator trying to offer open banking as a checkout option, you will likely run into walls fast. A standard open banking payment provider will reject your application. A regular merchant center will not approve a gambling merchant account. And your credit card payment terminal setup might be shut down if volumes spike or a processor decides you are too risky.
The result? Lost players who wanted a quick, easy deposit method. Higher cart abandonment. Slower growth.
Practical Solutions for iGaming Merchants: What Actually Works
Here are the most effective ways iGaming operators can get stable, scalable payment processing despite these hurdles:
- Work with specialist open banking payment providers who are pre-approved for iGaming and gambling merchants, not general-purpose fintech startups.
- Partner with high risk payment processing companies that have dedicated iGaming merchant programmes, proven compliance frameworks, and multi-bank acquiring relationships.
- Use a redundant payment stack – combine open banking payment options with credit card processing and alternative payment methods so a single provider block does not shut you down.
- Ensure your merchant svc agreement explicitly covers gambling transactions and includes chargeback protection provisions before you sign anything.
- Register your business in a licensing-friendly jurisdiction for iGaming, which makes it far easier to open merchant center accounts and get approved by payment providers globally.
- Build strong AML and KYC processes into your onboarding flow — providers are far more willing to take on iGaming clients who can demonstrate robust compliance programmes.
The Role of a Specialist Payment Partner Like Offshoregateways
Not every payment gateway can help you. Most are built for low-risk retail merchants who sell physical products or software subscriptions. iGaming is a completely different world — one that demands a partner who understands licensing, jurisdictions, chargebacks, and the specific demands of players who expect frictionless deposits and withdrawals.
A good specialist partner brings three things to the table. First, pre-existing relationships with banks and open banking payment providers who actually accept gambling merchants. Second, a diversified acquiring network so that if one processor drops you, another picks up the volume seamlessly. Third, the compliance and risk management infrastructure to keep your accounts healthy long-term.
This is exactly the space where Offshoregateways operates.
Do Not Let Payment Problems Limit Your Growth
The iGaming market is expanding rapidly. Global online gambling revenue is estimated to exceed $100 billion in the next few years, and gamblers are demanding smooth and secure payment processes. This could be through open banking for payment transactions, cryptocurrency acceptance, or localized payment methods for certain regions – your payment system must adapt to this growth.
The biggest mistake gaming operators make is treating payment processing as an afterthought. By the time your current provider shuts your account down or your approval rates start falling, it is already too late. The best time to build a robust payment stack is before you need it — not during a crisis.
Ready to Solve Your iGaming Payment Challenges? Offshoregateways Can Help
If your iGaming business is struggling to get approved for open banking payments, stable card processing, or reliable high-risk merchant accounts – you are not alone, and the problem is solvable. Offshoregateways specialises exclusively in payment solutions for high-risk industries including iGaming, online gambling, sports betting, and fantasy sports.
From helping you set up a compliant merchant center account, to sourcing the right open banking payment providers for your specific markets, to building a redundant multi-acquirer stack with chargeback protection – the team at Offshoregateways has the experience and the network to make it happen.
Do not let payment friction hold your business back. Contact Offshoregateways today for a free consultation and find out exactly how to build the payment infrastructure your iGaming business deserves.
Visit offshoregateways to get started.
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