Optimal re-launches NETELLER payment processing services in US

UK-listed Optimal Payments has announced the re-launch of its NETELLER-branded online payment processing service in the US.

The company said that it is bringing these services to the US marketplace through a federally-insured US financial institution sponsor.

Optimal Payments already processes payments for the nascent online gaming market in Nevada and New Jersey, having been  forced to exit the US market following the introduction of the Unlawful Internet Gaming Enforcement Act 2006 (UIGEA).

Joel Leonoff, Optimal Payments’ president and CEO, said: “The NETELLER service and Net+ Card being launched in the US are brand new services that have been developed to meet the unique needs of the US marketplace.

“With our US financial institution sponsor, we are leveraging NETELLER's flexible deposit and payment options and with our expertise, resources and management are offering something truly unique in the US.”

Neil Erlick, Optimal Payments’ executive vice president, business development, said that the new NETELLER service and Net+ Card the company has brought to the US has been re-branded with a new look and feel.

“We are providing updated features, capabilities and security as well as quick access to funds through our Net+ Card,” said Erlick. “Together with our US financial institution sponsor, Optimal Payments will continue to be a leading provider of integrated payments solutions.”

Analyst Ivor Jones of Numis Securities this morning issued a Buy rating on Optimal Payments, stating that the re-launch of NETELLER in the US will provide the company with “another way to benefit from the growth of online gambling in the US where it is already a payment processor to several key operators.”

Jones said that NETELLER was idea for gambling transactions as they were “much less likely” to be rejected than credit card payments and because the transactions to and from the wallet were instant.

Numis has increased Optimal’s price target from 500 pence per share to 600 pence, as it believes that the company’s share price has “further to go” despite its very strong recent share price performance.

“Today's announcement strengthens Optimal's attractions as way of playing the growth in US online gambling,” said Jones. “It is also another example of management delivering on its stated strategy.”

Jones added that he expects Optimal's share price to continue to respond favourably to the developing US opportunity and also from the upside from the recently achieved Visa and MasterCard acquiring relationships.
 
Shares in Optimal Payments plc (LSE:OPAY) have gained 2.95 per cent to 480.50 pence per share in London this morning, and have risen by 196.60 per cent in the past year.