PayRate42, a leading authority in rating payment processors in the CyberFinance space, announces the downgrade of PayDo, the trading name of the FCA-regulated e-Money Institution Ecommerce Technologies Ltd and FinTRAC-registered PayDo Canada Ltd., due to compliance issues. Founded in 2016, PayDo offers IBAN accounts, e-wallets, and merchant services under regulatory oversight.
Offering a range of financial services, PayDo caters to both low-risk and high-risk merchants, with varying fee structures. Despite its FCA regulation, PayDo’s involvement with the offshore crypto casino Gamdom has raised red flags in terms of compliance.
PayDo, along with its counterpart PayOp, has been implicated in facilitating payments for Gamdom, which lacks proper regulatory approval in the European Economic Area (EEA). This partnership underscores serious compliance concerns, as it involves processing payments for gambling activities targeting players from jurisdictions without regulatory approval.
While this facilitation of crypto casinos may be strategic and perhaps secured by special structures, we have doubts as to whether this poses problems for players. On the one hand, we see significant problems with the enforcement of chargebacks from the players of the facilitated casinos. Officially, Gamdom players buy the Gamdom Coin via PayOp and PayDo, which they can then use to play on Gamdom.
In our experience, this multilateral relationship between the customer and the (crypto) casino and the supporting payment facilitators makes it difficult or impossible to enforce chargeback claims in the crypto environment. This is a potential problem that can be particularly serious in the sensitive casino and online sector.
Under the oversight of Ecommerce Technologies LTD and Paydo Canada LTD, PayDo’s involvement with Gamdom highlights potential regulatory risks associated with payment processors collaborating with unlicensed gambling operators.
The downgrade to ORANGE reflects our concerts about the fact that PayDo is involved with unauthorized activities of offshore crypto casinos. Regulators are urged to review such partnerships to ensure adherence to international regulations and prevent unauthorized gambling activities from exploiting regulatory loopholes.
About PayRate42
PayRate42 is a rating agency specializing in payment processors. Our main goal is to protect merchants and consumers by providing transparency through the evaluation and rating of financial service providers. High-Risk Payment Processors (HRPP) operating outside the established regulatory framework are our primary focus.
