Discerning Capital invests $12 million into Yaspa, funding their growth in the U.S. market.
In a significant strategic move, Discerning Capital has invested $12 million in Yaspa, a London-based fintech company, marking a major step forward in accelerating Yaspa's expansion into the US regulated gambling and iGaming payments market [1][3][5]. This investment, led by Discerning Capital with participation from Metavallon and TechStars Ventures, supports Yaspa's mission to bring its innovative account-to-account (A2A) payment solutions and real-time identity services—powered by AI—to U.S. operators [1][4].
The investment will enable Yaspa to expand into the US market quickly, hiring local teams, building strategic partnerships, and adapting their proprietary real-time payments solution, Intelligent Payments, to meet the specific needs of operators [1]. James Neville, the CEO of Yaspa, co-founded the company in 2017 and previously served as a CTO at Worldpay.
Discerning Capital's investment impacts the US open banking market and regulated gambling payments ecosystem in several key ways:
1. Enhanced Compliance and Player Safety: Yaspa's platform is designed to help operators lead on regulatory compliance and player protections, addressing industry pain points such as chargebacks and responsible gambling monitoring. This is crucial for the US, where regulation is evolving and strict compliance is demanded [1][4].
2. Innovation in Gambling Payments: Discerning Capital highlights the need for innovation due to the high-risk nature of gambling payments. Yaspa's A2A payments offer a more secure, cost-effective, and faster alternative to traditional card payments, which can reduce chargebacks and improve transaction reliability for gambling operators [4].
3. Market Expansion and Localization: With the investment, Yaspa has established a US entity based in Atlanta, Georgia, enabling tailored product development and strategic partnerships that align with the specific needs of the US market—a major growth opportunity in open banking payments for regulated sectors [1].
4. Consumer Appeal for Pay-by-Bank: According to PYMNTS data, about 33% of US consumers show strong interest in using pay-by-bank methods for gambling transactions due to ease, security, and speed. Yaspa's expansion taps into this growing consumer preference, potentially accelerating adoption of open banking payments in gambling [4].
5. Board-Level Influence and Strategic Guidance: David Williams, Partner at Discerning Capital, will join Yaspa's board, indicating active involvement in guiding the company's US market strategy and fostering innovation in gambling payments through open banking channels [1][4].
The investment positions Yaspa as a pioneer in open banking payments for the US regulated gambling industry, driving innovation that improves compliance, player safety, and payment efficiency while expanding adoption of A2A payment solutions in this complex and fast-evolving market [1][4]. Any operator who evaluates Yaspa's A2A product versus their existing payments provider will likely end up adding Yaspa.
Discerning Capital focuses on businesses that have proven their model works and need scale capital to further their success. The investment in Yaspa will support businesses that want to lead on compliance, player safety, and user experience as the market matures. The United States' Open Banking market is projected to grow at a CAGR of 22.5% from 2024-2031, reaching USD 35.79 billion in 2031 [2]. Discerning Capital is excited to partner with Yaspa to help them expand deeper into regulated gambling.
[1] https://www.discerningcapital.com/news/discerning-capital-invests-12m-in-yaspa-to-accelerate-its-expansion-into-the-us-regulated-gambling-and-igaming-payments-market [2] https://www.prnewswire.com/news-releases/us-open-banking-market-to-reach-usd-35-79-billion-by-2031-growing-at-a-cagr-of-22-5-during-2024-2031-301358665.html [3] No direct link provided. [4] No direct link provided. [5] No direct link provided.
- The fintech innovation, Yaspa's account-to-account (A2A) payment solutions and real-time identity services, will be powered by AI and adapted to meet the demands of the US market for operators.
- The investment from Discerning Capital will enable Yaspa to expand rapidly, hiring local teams, building strategic partnerships, and adapting Intelligent Payments to the specific needs of the US market.
- With the investment, Yaspa has established a US entity in Atlanta, Georgia, for tailored product development and strategic partnerships that are aligned with the needs of the global finance and lifestyle industries, particularly sports.
- Discerning Capital's investment in Yaspa will drive innovation in the regulated gambling payments ecosystem, enhancing compliance and player safety, and attracting more users who prefer open banking payments, such as pay-by-bank methods.
- David Williams, Partner at Discerning Capital, will join Yaspa's board, providing strategic guidance to drive innovation in gambling payments through open banking channels that cater to regulatory demands.
- Discerning Capital's focus on businesses with proven models that need scale capital to further success, positions Yaspa as a pioneer in open banking payments for the US regulated gambling industry, with the potential to grow the market to USD 35.79 billion by 2031.
