For PSPs, including those serving iGaming operators, open banking through Yapily is more than a new payment rail. It can reduce card scheme costs, improve settlement speed, boost conversion, and remove chargeback liability. The result is lower operating costs for operators and a stronger proposition for PSPs.
1. Lower transaction fees
Open banking payments (Pay by Bank) are cheaper than card payments.
Cards typically cost merchants in high-risk industries like iGaming 2%–5% per transaction in 2025, once interchange and scheme fees are included¹.
Visa and Mastercard fees have risen ~25% above inflation since 2017, costing UK businesses ~£170m annually².
With Yapily, PSPs can offer operators low, fixed-fee account-to-account payments, which are more predictable for micro-deposit flows common in iGaming.
Method | Typical Cost | iGaming Impact |
Cards | 2%–5% per txn¹ | Expensive at scale on small deposits |
Open Banking (via Yapily) | Low fixed fee | Predictable, may reduce cost base |
2. Faster settlement and liquidity
Open banking often settles in real-time, compared to the days it takes for cards.
Card settlements can take 1–4 business days³.
Open banking leverages real-time rails such as Faster Payments, moving funds almost instantly⁴.
Yapily enables PSPs to deliver this liquidity advantage directly to operators, improving daily reconciliation and reducing reliance on working capital.
3. Higher conversion and fewer failed deposits
Open banking payments may convert better than cards by avoiding false declines.
False card declines cost merchants an estimated $20.3bn annually across the UK, France, Germany, and US⁵.
In iGaming, providers report open banking approval rates above 90%, compared with ~85% for cards⁶.
By routing through Yapily, PSPs can offer higher reliability across multiple markets, reducing operational overhead from retries and player support.
4. Reduced fraud and no chargebacks
Open banking structurally avoids card-scheme chargebacks.
Transactions are bank-authorised and irrevocable, which removes operator liability⁷.
Strong Customer Authentication (SCA) is mandatory under PSD2 and built into bank apps with biometrics or secure login⁸.
Yapily provides regulated open-banking connectivity that PSPs and operators can use within their own compliance frameworks, helping operators stay below acquirer chargeback thresholds.
5. Strategic advantage for PSPs offering Pay by Bank vs Card Payments
By offering open banking with Yapily, PSPs can:
Help operators lower costs on micro-deposits
Improve cash flow with instant settlement
Boost conversion and player retention
Remove fraud and chargeback exposure
Stand out in a highly competitive iGaming payments market
FAQs: Cost savings from replacing card payments with open banking in iGaming, 2025
Q1: Can PSPs eliminate chargebacks in iGaming with open banking, 2025? Yes. With account-to-account payments through Yapily, transactions are bank-authorised and irrevocable, so operators avoid costly card-scheme chargebacks⁷.
Q2: How much do card payments cost compared to open banking, 2025?Card processing fees usually range from 1.5%–3.5% per transaction¹, while open banking via Yapily uses a low fixed fee that may reduce overall costs.
Q3: Do open banking payments settle faster than cards in iGaming, 2025? Yes. Card settlements often take 1–4 business days³, but open banking via Yapily uses real-time rails like Faster Payments for near-instant settlement⁴.
Q4: Can open banking improve iGaming payment conversion rates in 2025? Yes. iGaming providers report approval rates over 90% for open banking, compared to ~85% for cards⁶. With Yapily, PSPs can deliver this uplift across markets.
Q5: Why should PSPs adopt open banking for iGaming in 2025?Because open banking may reduce operator costs, improve cash flow, raise conversion, and eliminate chargebacks. Yapily provides the infrastructure for PSPs to launch and scale using PSD2-regulated open-banking infrastructure.
Sources
DirectPayNet, Average Fees for Credit Card Processing (2025)
Financial Times, Visa and Mastercard merchant fees rise above inflation (2025)
Visa Europe, Merchant Settlement Timelines (2023)
Pay.UK, Faster Payments Service Overview (2024)
Aite-Novarica, False Declines Report (2021)
NetNewsLedger, How iGaming payment solutions impact trust and conversion (2025)
Finexer, Open Banking for iGaming (2025)
European Banking Authority, PSD2 SCA Guidelines (2022)
Yapily Ltd is authorised and regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of Account Information Services and Payment Initiation Services (FRN 827001).
Yapily provides open-banking connectivity and API infrastructure services. Yapily does not provide gambling services, fraud prevention, AML/KYC checks, affordability assessments, or compliance services, and does not assume PSPs’ or operators’ regulatory obligations under FCA or UK Gambling Commission requirements.
Any benefits described — including faster settlement, reduced costs, improved conversion, or reduced chargeback exposure — depend on each PSP’s and operator’s implementation, bank availability, and customer behaviour and are not guaranteed.
Coverage information is based on internal data as of February 2026 and may change