Paypal is reportedly planning to head back to the American online gambling market for the first time since the passage of the UIGEA back in 2006, according to multiple reports from the online poker press.
The return of one of the most trusted names in payment processing is a major shot in the arm for the budding business and could speed the spread of igaming across the country.
Word of PayPal’s potential American turnaround was first reported by OnlinePokerReport.com reporter Chris Grove. Though Grove’s posting includes no official word from Paypal representatives he did say:
PAYPAL plans to announce a foray into processing regulated online gambling payments in the coming months, according to a source with knowledge of the company’s plans.
Grove went on to say that Paypal officials have reportedly been planning the move for months.
Paypal’s potential return to the US market is a development that’s tough to overstate. The payment processor is widely used in the States and has name brand credibility with non-gambling demographics that other well-known, and trustworthy, processors like Neteller don’t have in that market.
Trust, however, is just one of the problems having Paypal back in town would solve. Paypal’s return would also do an end run around American banks and credit card companies that are reluctant to have anything to do with igaming transactions.
The absence of any official word PayPal suggests that it could be a while before American gamblers can take advantage of the company’s services. That said, having Paypal in the picture could make life a whole lot easier for American igaming operators and affiliates.