Partner overview

Aeropay is a financial technology company providing account-to-account payment solutions that enable faster, more reliable transactions. Aeropay's platform enables businesses to accept and send modern, digital bank payments that reduce processing costs, convert and retain more customers and minimize returns.

The challenge

A ‘high risk’ sector with delayed settlements

The gaming industry struggles with several payment-related challenges:

• Delayed settlements: Traditional ACH payouts typically process in 2-3 days, while players increasingly prefer more immediate access to funds ‍
• High transaction fees: Expensive card network fees cut into gaming platforms' and merchants' profit margins ‍
• High-risk merchant classification: Gaming merchants are generally considered high-risk due to potential fraud, elevated chargeback rates, and complex regulatory frameworks ‍
• Compliance complexity: Gaming regulation varies state-by-state, creating disparate requirements and compliance needs

Aeropay needed a partner bank to rethink banking infrastructure for their subsect of gaming merchants. These challenges were slowing growth, directly impacting merchant profitability and player satisfaction.

The solution

A tech-first, compliant approach

The Cross River-Aeropay collaboration was built on these key components:

1. Real-time merchant payouts: Aeropay leveraged Cross River's instant payments API to process payouts in real-time. By enabling instant payment rails like RTP® and FedNow®, Aeropay could offer better merchant experiences by making funds available immediately regardless of weekends, holidays, or after banking hours—in contrast to 2-3 day settlement windows for ACH payments to complete.
2. Custom API integration with comprehensive compliance infrastructure: With a rigorous focus on transaction compliance and state-by-state regulatory approval, Cross River and Aeropay developed a custom, compliant payment framework. This integration combines Cross River's compliance programs from transaction monitoring to state-of-the-art merchant fraud tools, with Aeropay's risk scoring, merchant screening, and behavior analytics capabilities to address the complex regulatory landscape. The API integration was built to:
   1. Seamlessly onboard operators
   2. Provide players access to instant payouts
   3. Ensure security through real-time transaction monitoring
   4. Maintain compliance with varying regulatory requirements across states
   5. Automate compliance monitoring and adapt to evolving regulations
   6. Allow gaming merchants to operate confidently in a high-risk category
3. Better economics from bypassing card networks: The direct account-to-account payment infrastructure eliminated the need for expensive card networks, reducing transaction fees for merchants and gaming platforms while enabling better pricing for end users.

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Results and impact

Growth metrics

• Growth from 1 to 7 merchants actively using RTP services within the first year of implementation
• 297% year-over-year growth in transaction count
• 239% year-over-year growth in dollar volume 

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Industry impact

• Proven compliance framework: Successfully established a model for providing compliant payment services to a high-risk merchant category that has historically struggled with payment processing options ‍
• Bank-fintech collaboration blueprint: Demonstrated a successful template for how tech-first banks and innovative fintechs can partner effectively within heavily regulated environments ‍
• Mainstream RTP adoption: Shown that faster payments drive significant adoption of pay-by-bank solutions, providing an alternative to traditional card networks ‍
• Cost reduction: Offering an alternative to card network fees directly improved margins for merchants and gaming platforms

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Tangible user experience enhancements

• 24/7/365 payment availability: Players now can receive instant access to their winnings regardless of time of day, weekends, or holidays
• Elimination of 2–3-day settlement delays: Replaced multi-day ACH processing times with instantaneous funds availability ‍
• Strong consumer preference: A recent industry study found that 79 percent of gamers specifically opt for instant digital disbursements when offered ¹ ‍
• Improved customer loyalty: Faster access to funds has translated to measurable improvements in player satisfaction and retention

Bonus points

Unexpected success factors:

1. Shared company culture: Both organizations embrace a "tech first" approach, making the collaboration particularly effective through similar technical approaches and priorities.
2. Robust technical support: Cross River's implementation team provided exceptional support throughout the integration process, ensuring smooth technical setup.
3. Mutual commitment to compliance: Both organizations prioritized regulatory compliance and security, creating a foundation of trust that enabled innovation within a highly regulated industry.

The future of payments

The Cross River-Aeropay collaboration illustrates the transformative potential of combining traditional banking compliance with modern payment needs. As the payments industry continues to evolve, Cross River is positioned to play a pivotal role by:

• Providing regulated banking infrastructure for fintech innovation
• Bridging traditional banking compliance with modern payment needs
• Accelerating payment modernization through a "tech first, compliant" approach