Payper.ca is a novel iGaming supplier in the Canadian online gambling space, offering a suite of payment solutions tailored to the unique needs of this market. Founded in 2020 and headquartered in Toronto, Ontario, Payper has quickly established itself as a key player in the fintech sector. They have been present at most iGaming trade shows as of late, including the Canadian Gaming Summit of 2024, the ICE london 2024 and the Canadian Gaming Summit of 2023. They distinguish themselves by their “hands-off” automated cash-based payments and exceptionally low chargeback rates, as stated on their website:
“With an average of 1 ticket per 10,000 transactions, you might wanna tell your fraud department to bring a book to work”
Source: https://www.payper.ca/why-payper
This low chargeback rate is particularly relevant to the subject of our website, eCheck casinos, because our payment vertical has historically been threatened by fraud and chargeback issues ever since its inception. Just as a physical check can bounce, so too can eChecks, and users trying to abuse the casinos can also initiate a chargeback by contacting their banks. eChecks are particularly vulnerable because they take up to 7 days to clear, so fraud can be applied at any stage in the process, and the casino only notified later. So when you come across a modern iGaming fintech solution that claims 1 fraud ticket per 10,000 transactions, you listen. And if they’re right, and you truly only need to bring a book to work, that would be incredible. What book would it be though ? We’ll let your imagination run loose.
Payper.ca Core Offerings And Chargeback Discussion
Payper’s primary focus is on providing localized payment options (like Loonio) that resonate with Canadian customers. Their flagship services include:
- Interac e-Transfer®: This widely popular Canadian payment method allows for instant, real-time transfers directly from a user’s bank account. Payper has automated this process, eliminating the need for manual reconciliation.
- Interac Online®: A debit card-based payment solution that enables direct transactions from a user’s bank account.
- Online Banking Payment: An enhanced electronic funds transfer (EFT) system that facilitates payments through online banking platforms. Enhanced in the sense that it has anti-fraud features built in compared to a regular EFT. iGaming clients can even set a risk threshold, which is a very nice feature if you ask us.
- Digital Cheque: (an eCheck, the subject of our site): An electronic version of traditional cheques, streamlining the payment process for those accustomed to this method. However as we know industry-wide, this method is particularly susceptible to fraud (not speaking about Payper.ca’s offering in particular). Mostly because of player abuse and perhaps more limitations to contest chargebacks for the casinos (unlike a credit card chargeback).
To us, it seems more iGaming sites should integrate solutions like Online Banking Payment of Payper.ca (EFTs with fraud protection) instead of leveraging outdated eCheck solutions. Some eCheck brands we’ve encountered in 2024 have little to no protections built in. Yet they still credit player funds immediately, even before they clear. Some brands like PokerStars are wising up, and players with returns might have to wait for the funds to clear next time. The best eCheck implementations we’ve seen in terms of protection require a string of 5 preliminary deposits using an APM to unlock eCheck as a deposit modality. This is a very powerful way to mitigate fraud, for these reasons:
- Gives the casino ample time to study player depositing and playing patterns
- Machine Learning can be applied to study the betting pattern
- Players less likely to fraud on the 6th deposit
- Most players with intent to fraud don’t wait for 5 deposits
This seems to be the current solution of Cadtree Limited brands. However the flip side of that, is that legitimate players looking for eCheck deposits might be deterred by the stringent requirements. So it seems to us that Online Banking Payment by Payper.ca (or similar secured-EFT implementations) could possibly be a great eCheck alternative. From our traffic logs, there is a lot of interest for eCheck deposit terms in Google Canada. This clearly shows that there is a niche demographic of players that wants to be catered to.
Impact on Canadian Gambling Sites
Payper’s solutions are particularly well-suited for the online gambling industry in Canada. Here’s why:
Localization: By focusing on payment methods that Canadians are familiar with and trust, Payper helps gambling sites increase their appeal to local users.
Instant Transactions: The real-time nature of Interac e-Transfers® and other Payper solutions allows for immediate deposits and withdrawals, enhancing the user experience.
Reduced Chargebacks: As we’ve seen earlier, Payper claims their solutions can help reduce chargebacks, a significant issue in the gambling industry.
Compliance: As a Canadian company, Payper is well-versed in local regulations, helping gambling sites navigate the complex regulatory landscape.
User Preferences
Payper’s approach is backed by compelling statistics (which they feature on their site):
- 52% of Canadians would prefer to use an Interac e-Transfer® over a credit card for online transactions
- 65.5% express interest in using Interac e-Transfer® for online purchases
- A staggering 90% of Canadians already know how to use Interac e-Transfer®
Source (Payper.ca, just below the fold)
These figures underscore the potential for Payper’s solutions to drive adoption and user satisfaction in the online gambling sector.
Integration and Flexibility
One of Payper’s key selling points is its ability to integrate with existing payment infrastructures. Gambling sites can add Payper’s solutions without discarding their current credit card merchant accounts, allowing for a gradual transition or a hybrid approach. Most brands we’ve encountered serving the Canadian market, focus on a hybrid model, with these verticals typically represented:
- Ewallets (and modern implementations like MiFinity)
- Credit and debit cards
- Interac (either via Loonio, Gigadat, Payper, or others)
- Crypto
In general, iGaming brands choose Payper to ehance their EFT offerings, and also offer alternative deposit options for their player base.
Payper.ca Advantages
The advantages of this fintech solution seem numerous, however here are some of the obvious ones:
- Its primary selling point is the weekend payment processing. Players can transact via Payper e-Transfer on weekends and public holidays
- Its systems use advanced push payment and ML (machine learning) algorithms to detect and prevent fraud in real-time
- Instant deposits and withdrawals
- Familiar payment methods for Canadian users
- Enhanced security through bank-level encryption
- No need to share credit card information
- Potential for reduced chargebacks
Beyond Gambling: Broader Applications
While Payper’s solutions are indeed particularly advantageous for online gambling sites, their applicability extends to various e-commerce sectors. The company’s focus on reducing friction in the checkout process and increasing conversion rates makes it attractive to any online business looking to optimize its payment systems.
Industry Recognition
Payper’s innovative approach has not gone unnoticed in the iGaming industry. The company has been featured in industry directories and events, including:
- iGaming Suppliers, a comprehensive directory of vendors in the online gambling space
- Canadian Gaming Summit
- ICE London
Challenges and Future Outlook
Despite its promising start, Payper faces several challenges:
Competition: The payment processing industry is highly competitive, with established players and new fintech startups vying for market share as of late.
Regulatory Landscape: The online gambling industry is subject to evolving regulations, requiring Payper to stay agile and compliant.
Expansion: While Payper’s focus on Canadian payment methods is a strength, it may limit its international growth potential.
Looking ahead, Payper’s success will likely depend on its ability to:
- Continuously innovate and expand its product offerings
- Forge strategic partnerships within the iGaming industry
- Navigate the regulatory environment effectively
- Potentially explore expansion into other markets while maintaining its core strengths
Payper.ca cons:
- Limited to Canadian market and banks
- As a user, not easy to research and find iGaming sites that actually use Payper.ca. Not readily documented on affiliate sites. The only way is to log-in to the individual casino’s cashier and see what Interac versions they are offering. The casino brands will typically display the generic Interac logo on their sites and not the specific implementation (Loonio, Payper, Gigadat, etc..)
- Still a niche deposit option
- Requires users to be comfortable with using online banking
- May have transaction limits set by banks
Security Measures
- Multi-faceted fraud checks
- Machine learning algorithms for fraud detection
- Negative databases to flag potential issues
- Advanced push payment algorithms
User Experience
Payper emphasizes a streamlined checkout process with:
- Focused payment flow
- Reduced redirects
- 96% completion rates for transactions
Comparison with Alternatives (Table)
| Feature | Payper | Credit Cards | E-Wallets |
|---|---|---|---|
| Transaction Speed | Instant | Instant for consumers, 1-3 days settlement for merchants | Instant to 24 hours |
| Chargebacks | Minimal | Common | Varies |
| User Familiarity (Canada) | High (Interac) | High | Moderate |
| International Usage | Limited | Widespread | Widespread |
Conclusion
Payper.ca represents a significant development in the Canadian online gambling payment landscape. By focusing on localized, instant, and user-friendly payment solutions, the company is addressing a clear market need. For Canadian gambling sites looking to optimize their payment processes and appeal to local users, Payper offers a compelling suite of solutions. Are chargebacks a thing of the past ? Time will tell.
As the online gambling industry continues to evolve, companies like Payper that can provide tailored, efficient payment solutions will likely play an increasingly important role. As we said, the coming years will reveal whether Payper can maintain its momentum and establish itself as a long-term leader in this dynamic sector. And whether beefed up eCheck with anti-fraud features become relevant again as a deposit modality.
