Digital Transactions Authoritative, insightful and timely information for payments professionals
PayNearMe Inc. has added one more state for its iGaming and sports-betting processing business. The latest expansion, to Kansas, brings to 20 the number of states in which the payments and electronic billing platform provider has iGaming operations. The expansion also comes just as the collegiate football and National Football League seasons are getting under way.
PayNearMe’s MoneyLine service allows operators to accept deposits to bettors’ accounts and to facilitate payouts. Launched in 2021, MoneyLine supports cash, credit and debit cards, and automated clearing house payments, as well as such alternative payment options as PayPal and Venmo The breadth of payment options supported by MoneyLine is a point of differentiation for PayNearMe in the highly competitive online gaming and sports- betting market, which has attracted such major processors as Paysafe Ltd.
“Where some competitors specialize in supporting one or two forms of tender, we support a wide range of tender options,” says Leighton Webb, vice president and general manager, iGaming and sports betting, for PaynearMe.
Another point of differentiation for MoneyLine is its analytics capabilities, Webb adds.
In an effort to make payouts more convenient, PayNearMe has developed a mobile app that facilitates cardless payouts through a network of 20,000 ATMs nationwide. Bettors choosing this payout option receive a unique PIN that can be entered at the ATM. Bettors must provide their mobile phone number and an order number to facilitate the payout. Payouts are capped at $500. Bettors can also use the app to locate an ATM near them to facilitate a payout.
PayNearMe expects the service to begin rolling out in earnest in early 2023, according to Webb. Other methods for payouts supported by PayNearMe include push payments through the ACH to PayPal accounts.
While PayNearMe declines to reveal what portion of its business iGaming and sports betting represent, Webb says this market represents “a strategic growth engine” for the company.
Since it became a legal option in the U.S. market in 2016, sports betting has become increasingly popular with consumers, attracting particularly a large audience of high-income bettors. TransUnion LLC’s “Consumer Pulse Online Sports Betting” study reveals that 54% of mobile sports bettors earn $100,000 or more annually. Despite their hefty salaries, a high percentage of these bettors indicate they have trouble paying bills and are using short-term credit services, such as payday loans, to make those payments. TransUnion conducted its research via an online survey of 2,739 adults in May.
“At face value, most of the consumers engaging in mobile sports betting can likely afford to do so,” Declan Raines, head of U.S. gaming at TransUnion, says in prepared statement. “At the same time, our findings demonstrate how important it is, especially during a time of economic uncertainty, that operators utilize comprehensive data to identify both resilient and distressed consumers. Doing so can help operators protect players and provide a safer experience to consumers engaged in regulated betting.”
