PayPal Purchases Modest Mobile Payment Business
27 August 2015
The online gambling industry as a whole has been pushing very hard on the mobile front with games, platforms and software. However, one place where development has been lagging, comparatively speaking, is in payment processing. PayPal has recently purchased Modest, a start-up in the mobile payment processing sector, and it's an acquisition that could provide a model for making deposits and requesting withdrawals that the industry could leverage in a major way.
What Modest Does
Modest is a company that focuses on making payments in apps and other mobile platforms. The idea is that a merchant can place buttons for products inside of their apps with an easy to use interface. This is actually similar to what PayPal has going on with Pinterest right now and their Buyable Pins feature through PayPal's Braintree program. This idea of being able to make a payment inside of viewing content is what they're calling "contextual commerce," and it's something they're banking on to be the future of payment processing.
Contextual Commerce and Online Gambling
Online gambling sites already use the idea of contextual commerce to a degree. Whenever you're looking at a list of promotions, they'll normally have buttons beside of each that starts the process of redeeming them. However, this isn't tied to any particular payment solution, and you still have to go through the process of logging in, setting up your account details, setting up your payment details, etc. True contextual commerce would allow players to get in on the action in just a couple of clicks, and it's a major convenience that would be a win-win situation for both the players and the sites.
PayPal is accepted as a payment method at a number of online gambling sites, but it definitely doesn't have the market share of something like Skrill or Neteller in this particular industry. It will be interesting to see how this impacts their share in this particular market and if they're able to tag along with the rapid mobile expansion that we're seeing with online gambling right now. In either case, it provides another beacon for payment processors and software platforms to follow when it comes to giving players the best experience possible.