|UK bookmakers and online casino operator Ladbrokes has become the e-gaming customer of earthport, an online payments company.|
Recently, it seemed that the Internet casino business was running out of friends in the financial sector, with credit card companies and banks refusing to transact gambling purchases online, and even PayPal discontinuing gambling transactions. So the announcement of the Ladbrokes/earthport deal is timely.
UK-based earthport has developed a secure Internet payment infrastructure which links directly to the traditional banking system. The user's money never actually leaves the bank until a secure message instructs payment out into the real world.
Earthport reckon that alternative payment methods to credit and debit cards are essential to expanding the online gaming industry into markets where credit cards are not widely used. Mechanisms such as earthport's also facilitate faster and more economical movements of multi currency amounts around the world.
Phillip McGriskin, Business Development Manager at earthport, said: 'Cleared cash is the way forward for on-line retailers, as it opens up whole new countries where credit card penetration is very low, as well as enabling faster and more economical movements of funds on a global basis. Ladbrokes is the first of what we believe will be many major players to adopt the earthport payment system.'
Earthport is able to charge significantly lower fees than its competitors whose systems require additional software to be installed or rely solely on the credit card or debit card clearing systems, because the earthport model minimises the necessity to move funds physically for each transaction. The earthport payment infrastructure also facilitates electronic transactions with cash as it opens up e and m-commerce to users who are unable to obtain credit cards.