Challenger Bank Monzo and open banking firm TrueLayer have entered into a partnership to protect customers using new payment methods to remit money when gambling.
In a bid to help customers be in control of their finances when gambling, the two firms have launched a pilot scheme using open banking to block payment transactions being made to gambling operators.
The key objective for this new feature is to ensure that gambling remains a purely social activity rather than an addiction with life-altering effects.
After seeing the escalating demand for customers wanting help with their gambling addiction, Monzo introduced a gambling block back in 2018 that blocked card payments to gambling firms. The digital bank was one of the first banks to do so.
The block enables gambling enthusiasts to stop transactions to bookmakers and gambling providers – in-person and online – and limits cash withdrawals after a certain amount. Furthermore, to turn off the block, users are required to go through a 48-hour waiting period or speak to a customer support representative.
While there are banks with gambling blocks which stop card payments to specific merchant category codes, these are only available for card payments and not open banking powered payments, the firm said.
However, with this new collaboration, when a user customer attempts an open banking payment to a gambling firm, TrueLayer will notify Monzo via an enhanced API call. If the gambling block has been activated, Monzo will block the payment on the customers’ behalf.
Highlighting the importance of the gambling block, product manager at TrueLayer Matthew Parish and open banking lead at Monzo Albert Cabre Juan said: “Initiatives like affordability checks to flag at-risk players earlier, spending limits to help ensure players do not overextend themselves, and friction-free identity checks can all be improved using open banking.”
To date, over 275,000 Monzo customers activated the gambling block and less than 10% switched it off permanently. In 2020 alone, more than 2,300 people turned on the gambling block every week.
The launch of this open banking tool comes days after Monzo chief TS Anil, urged the UK Government to authorise the use of gambling access blocks on all UK bank accounts.
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