PayPal, the major online payment solutions provider, is getting back into the online casino industry in a significant way. The company has struck a deal with European payments provider Neovia. Under the new deal, PayPal can be used as a payment method for users of Neovia’s Netbanx payments system. Netbanx became the first online payment service provider in the UK in 1996. Neovia is used by more than 1,500 egaming sites based out of the United Kingdom.
Getting back in the game
PayPal has grown steadily as an online payments provider during this decade. The company claims to have over 75 million active accounts in 190 markets around the world. Their financial services are offered in nearly 20 currencies. PayPal’s parent company is the the eBay company.
The deal with Neovia is a change in strategy for PayPal. The company basically stepped away from the online casino industry back in 2002 under pressure from the United States government. PayPal was deemed to be in violation of the US Wire Wager and Patriot acts for transferring funds to offshore gambling sites. Under a settlement in 2003, eBay paid a $10 million penalty to the US government.
Neovia has also had their issues with the US government. In 2007, under the trading name of Neteller, the company had to forfeit $136 million to the United States for violations that were similar to the PayPal infractions. Neteller admitted to to operating an “unlicensed money transmitting business” while participating in the promotion of “unlawful transactions” between gaming operators and their customers in the United States.
A big deal
click here to see most Popular PagesPaypal has gradually been getting back into the online casino market since 2006. The new deal is the most significant sign that PayPal is embracing the opportunity to regain a prominent place in the ever growing online casino industry.
“We are delighted to have signed this strategic partnership with Netbanx – one of the leading market payment service providers. Netbanx has a great merchant portfolio and this partnership offers PayPal an excellent way to reach this significant audience. Netbanx provides secure online credit card and debit card payment solutions and with PayPal its customers can keep their financial details secure and choose whether to fund the transaction either from a bank account or from a credit card,” said PayPal general manager of merchant services Cameron McLean. The company enables players to receive and send funds on the web without disclosing financial details, via their credit cards, bank accounts or account balances. Still, Paypal will not accept wagers from players based in the United States.
“We are pleased to be able to add PayPal to the range of payment options available to our merchants via our Netbank Payments Gateway, giving their customers more choice in how they want to purchase goods online. The PayPal option is fully integrated within Netbank, meaning that there is no integration required for merchants who have already migrated to our leading Netbank Unified PayPage checkout technology,” said Neovia’s Dan Starr.
