By Pavo Jurkic
August 13, 2019
The process of paying cash prizes to esports tournament winners is much more difficult than it should be. Event organizers have to comply with international payment rules and regulations in place to tackle international money laundering. It’s estimated that esports organizations pay roughly 20% of their tournament earnings on accounting and transaction fees. And that’s not taking into account the sheer amount of time required for these international transactions to go through. We’re talking months on end, some even taking close to a full year to arrive at their destination.
This overly complicated international payments ecosystem is exactly what Prize Payments aims to tackle. Their main goal is to simplify the transaction process, be more efficient and create a sustainable end-to-end payment solution with minimal fees on both ends. The man in charge is Han Park, CEO of Prize Payments, who already has a ton of experience in this field as he worked as an esports executive at ESL. Let’s see how his endeavor can help save money and time to both esports event organizers and teams/players!
With their innovative service, Prize Payments aims to offload the most cumbersome parts of payment processes and decrease accounting and transaction fees by up to 50%. Additionally, they aim to cut the waiting time as that’s one of the biggest issues crippling the payments.
Prize Payments supports 115 currencies across 180 countries, ensuring they cover the entire esports industry spectrum. Prize Payments esports service will do all the hard work, from regulating and converting currencies to complying with international taxation and European privacy laws, the notorious GDPR (General Data Protection Regulations).
The total prize pools in esports are estimated to surpass $300 by the end of the year. With this much money on the line, there definitely is a market for a service such as the one offered by Prize Payments. If they manage to streamline all transaction processes and establish themselves as faster and cheaper middlemen, I believe they could make waves in the esports industry.
Knowing the current state of affairs in the industry, with as many as 90% of esports organizations being in the red at the end of each year, cutting fees and getting paid faster ought to seem like great news. If Prize Payments esports service fulfills its main goals, it’s great news for everyone. Fingers crossed Han Park’s creation lives up to everyone’s expectations!
For more information, you can visit their official site here.