As Open Banking has matured over the last eight years, it has outgrown its payment origins and spread across multiple sectors, including the iGaming industry.
The iGaming sector has taken particular interest in Open Banking due to its sophisticated APIs being able to unlock new data entry points which enable gaming operators to access a players personal information to better understand their customers and protect them.
But as Open Banking continues to be adopted by operators, has it delivered on the benefits that the payment industry has realised? Or is the gaming industry still in its infancy when it comes to delivering a true Open Banking customer experience?
This was the topic at hand during a panel at SBC Summit Malta on June 12, moderated by Payment Expert Editor Rachael Kennedy, who quizzed the panel of speakers if Open Banking’s hype matches the reality today.
“There are a lot of areas we still need to polish before it can be ready for mass adoption”, said Sean Spiteri, Head of Payment Solutions at Kwiff. “This is the reason I believe it has not been as well received in comparison to other markets.”
Where Spiteri highlighted the shortcomings of user adoption for Open Banking payments, Theresia Mallia, Head of Payment Product at Kindred, raised the issue of the user experience when it pertains to adopting Open Banking, citing friction within the customer journey.
User experience friction
“A lot of people say that Open Banking offers an easier user experience, but this is not always the case,” said Mallia.
This sentiment has been echoed by industry figureheads within the iGaming space due to the multiple verification and authentication steps required during customer onboarding. In some instances, a player may be asked to enter card data, upload official proof of identification and set up passwords – a cumbersome process which may drive them to seek simpler alternatives.
Gaming operators risk losing customers to competitors with streamlined onboarding. For Mallia, integrating Open Banking within apps has been particularly concerning.
“For us, one of the biggest challenges is on apps, because sometimes the app does not always work,” she said. “It depends a lot on the APIs and how it is being implemented by providers and software capabilities in particular markets.”
A fragmented market?
Much like the gaming industry, the payments sector is still learning how best to roll out Open Banking payments to customers.
In countries such as the UK and Sweden, Open Banking-powered instant payments have steadily seen increases in adoption realising the tangible benefits of the speed of transaction.
However, a large majority of countries in Europe in particular, predominantly rely on card payments and continue to be the standard across all industries too.
Mallia noted customers “do not prefer Open Banking” in many jurisdictions, as “they use alternative payment methods and/or cards, so it is not a placement for everyone”.
The payments sector debates whether adoption challenges stem from payment providers or merchants. Understanding and awareness of Open Banking payments remains the main barrier to wider adoption.
Regulatory landscape
But what if the responsibility does not lie with the payment service provider nor the merchant? What if regulators need to hold sole responsibility for being able to provide efficient instant payments?
Christian Reinheimer, Director Payments Product & Technology at LeoVegas, believes there are still gaps between the synergy of gaming and financial regulations, and why this may ultimately hurt the progress of Open Banking within the gaming sector.
“Regulation is not taking into account that we (gaming operators) have to do the work and is not incentivising us,” said Reinheimer.
“When Open Banking came in, the promises around data for certain use cases for affordability checks when it pertains to the data you get and the data you see, there is quite a big gap there. The actual usage of instant payment rails is not where it should be.”
While Reinheimer addressed this issue during the panel, the European Commission is taking action. On October 9, 2025, the EU Instant Payments Regulation (IPR) mandated all payment service providers must support instant payments and payee verification functionality. This amendment aims to accelerate instant payment adoption across Europe, delivering faster transactions, transparent card data, and improved verification.
Silver linings
Despite the challenges addressed by the panel, all three speakers highlighted the benefits of adopting Open Banking as part of their payment infrastructure.
“When it comes to the more tangible upsides of Open Banking, we see that usage of e-wallets is down as customers understand they can have instant payments where they are present, which is a great upside,” said Reinheimer.
One of the major reasons as to why gaming operators are bullish on Open Banking is because it facilitates instant payments, where transactions can happen in 10 seconds.
Deposit and withdrawal times for gaming players has often been a point of contention for a number of years, but with the arrival of instant payments, gaming operators can attract new and existing customers to stay onboarded with them by making the payment experience as seamless as possible.
“Instant payments, being able to make payments in just a few minutes is amazing,” said Mallia, who mentioned how Open Banking has helped innovate the sector.
She said: “There are also applications of Open Banking where you can verify your customer and register a deposit, so it has brought some innovation within the sector, and now we are seeing it being implemented into other sectors.”
Open Banking has certainly been a major disruptor since arriving on the payment scene in 2017. It has enabled faster transactions, greater insight into customer data, and flipped the regulatory landscape on its head.
Perhaps the most pressing challenge for Open Banking now is how to seamlessly integrate its capabilities within other industries like gaming to achieve a true innovative experience.
