New York's Metropolitan eyes opportunity in gaming payments

Core Insights - Metropolitan Bank Holding Corp. is entering the online gaming payments sector with a new real-time payment solution expected to launch in the fourth quarter of 2023 [2][10] - The bank aims to address unique payment challenges in skill-based games, which have experienced significant growth over the past five years [3][5] - The company anticipates that its personalized service and advanced technology will drive customer adoption in the gaming industry [3][4] Financial Context - Metropolitan previously generated $19 million in payments revenue in 2023 but reported zero payments revenue in 2025 after exiting the payments sector in 2024 due to regulatory issues [9][11] - The cost of developing the new gaming payment solution is included in the company's expense rate projections for 2026 [3] Market Opportunity - The bank believes it can create a profitable niche by offering real-time payment capabilities to gaming operators, which currently face issues with chargebacks and transaction failures [5][6] - A real-time payment system is expected to enhance the user experience by minimizing payout delays and improving transaction speed, which are critical pain points for bettors [7][10] Strategic Vision - The CEO of Metropolitan Bank emphasizes the significant value proposition of their new payment platform, suggesting that gaming operators will prefer to direct transactions to Metropolitan's system [4][9] - The company is confident in its ability to exceed previous performance levels in payments revenue, driven by the anticipated steady flow of transaction fees and end-user deposits once the new platform is operational [11]