The rapidly expanding utility of open banking for instant funding came into sharp relief early Thursday with announcements from payments processors Nuvei Corp. and Circle Internet Financial Corp.
Montreal-based Nuvei, which has been cultivating its stake in the U.S. gaming market, said consumers can now move money instantly from their bank accounts to digital wallets, payment cards, or other accounts. The company is working with open-banking firm Plaid Inc. to verify bank accounts for the transfers. The new capability, called Verified Withdrawals, adds to an existing feature allowing gamblers to deposit winnings instantly into their bank accounts.
The feature relies on technology from Mazooma Technical Services Inc., a Toronto-based payments firm Nuvei acquired in August that specializes in the gaming market.
Verified Withdrawals’ verification process through Plaid includes know-your-customer procedures before the withdrawal and automatically ties players to their bank-account data, according to Nuvei.
Nuvei has been moving rapidly into sports betting in recent months. In May, it said a subsidiary had won approval from the Michigan Gaming Control Board to offer processing to licensed and regulated operators of online sports betting in that state. Michigan only in January had legalized online wagering on sports. That move brought to 10 the number of states where Nuvei had gained approval to process sports wagers.