In 2024, the Metropolitan Bank Holding Corp. faced regulatory challenges which led to its exit from the payments sector. However, the New York-based company plans to make a grand comeback with a unique gaming payment solution that they believe can generate more revenue than they managed in their previous stint.
Metropolitan Bank’s Plans for a Comeback
Metropolitan Bank Holding Corp., a company that holds assets worth $8.26 billion, announced in early March that it is developing a real-time payment solution for its clients. This solution is primarily aimed at the gaming industry, and is expected to be operational by the fourth quarter of the year.
Online games which require skill, such as poker, blackjack, and sports betting, have seen a remarkable growth in the past five years. According to Nick Rosenberg, Metropolitan’s chief business development officer, these games pose unique payment challenges, which Metropolitan believes it is perfectly positioned to address.
The Benefits of a Gaming Payment Solution
The cost of developing the gaming solution has already been factored into the company’s 2026 expense rate. Metropolitan Bank hopes that its combination of personalized service and cutting-edge technology will encourage customers to adopt the platform. The CEO of Metropolitan, Mark DeFazio, stated during a presentation that the value proposition was so significant that any operator choosing to work with them would likely direct transactions towards their platform.
Previously, payments were a significant part of Metropolitan’s business model. However, in 2024, the bank announced it would scale back its banking-as-a-service offerings after a run-in with regulators over a prepaid card program. The bank had to pay $30 million in penalties to federal and state banking agencies following claims that it failed to maintain effective anti-fraud controls, leading to over $300 million in allegedly improper payments.
Metropolitan Bank’s New Strategy
Now, Metropolitan Bank is ready to re-enter the payments sector. The company plans to provide real-time capabilities to gaming operators who currently struggle with chargebacks tied to failed transactions. A real-time solution like the one proposed by Metropolitan Bank could revolutionize the online gaming industry.
DeFazio believes that such a platform could be a game-changer for the gaming industry. With real-time transactions, money could be moved from the player’s account instantly, preventing bets from being placed if funds are not available. This could not only prevent chargebacks but also speed up legitimate transactions, eliminating payout delays that have been a significant source of frustration for online gamblers.
The Future of Gaming Payments
Once operational, Metropolitan Bank’s payment platform is expected to provide a steady flow of transaction fees and end-user deposits. The company is confident that it can surpass its previous payments revenue record of $19 million in 2023. After its 2024 exit, Metropolitan reported zero payments revenue in 2025.
According to Nick Rosenberg, the company is confident in exceeding its prior performance. The work on the new payments platform is nearly complete. The next step for Metropolitan Bank will be to test the platform for several months before its expected launch in the fourth quarter.
By focusing on the rapidly growing online gaming industry, Metropolitan Bank is not just re-entering the payments sector, but it is doing so with a clear strategy and a promising product. Its unique payment solution for the gaming industry might just be the game-changer that the bank needs to overcome its previous setbacks and achieve new heights of success.
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