PayPal Share in Online Gambling Market Grows
World’s largest e-wallet provider signs deal with British company Neovia in major strategy shift.
Payment solutions provider PayPal is moving back into the online gambling market, and in a big way, after inking a deal with e-wallet provider Neovia.
The deal means PayPal will be offered as a payment method to gamblers who use Neovia’s Netbanx payments system. However, PayPal will not accept bets from users based in the United States.
The deal was lauded by general manager for merchant services Cameron McLean as one that would offer “PayPal an excellent way to reach this significant (gambling) audience.”
PayPal has stayed largely away from online gambling since a 2002 decision by its parent company eBay after the United States government accused it of violating the law by transferring funds to offshore gambling websites.
The world’s largest e-wallet provider company had signed some smaller deals recently in the online gaming markets, including with online casino 32Red.
But the Neovia deal is a significant move because of the size of the new partner – Neovia is used by more than 1,500 gambling websites and is among the largest e-wallet provider companies going around.
Netbank + Neteller
British-based Neovia was rebranded in November 2008 after being formed from a combination of Netbank and Neteller.
Online gambling is becoming more and more customer-friendly by the day as payment method options increase.
A new method emerged just last month with the establishment of 900Pay, which allows users of American online casinos to pay and receive their online gambling bills through their phone bill.