One of the biggest concerns players have always had when it comes to playing at online casinos, apart from the security aspect, is payments. Casinos use the latest industry-standard technology, like 128-bit SSL and more, to protect your money. But how do you make payments into your casino account and withdraw winnings from it?
That is where the numerous payment methods available come in handy. Every casino supports a range of payment methods to make transacting easy for its players. These include credit cards, debit cards, e-wallets, prepaid vouchers and direct/online banking methods.
There are a number of e-wallets that are very popular at online and mobile casinos. One of these is Skrill, an e-wallet that was earlier called MoneyBookers.
There are also a number of e-wallets and methods that casinos are now slowly trying out, and one of the biggest of them all is PayPal. Skrill and PayPal are both used at online casinos, but the two are a study in contrasts: Skrill has been one of the most popular at online casinos, while PayPal has been popular in online transactions in general but is relatively new to the online casino industry.
On this page we will take a look at these two methods and see which one works better as a payment processor for players to use at online and mobile casinos.
Skrill vs. PayPal: Basic Differences to Determine Which is Better
Skrill and PayPal are two very popular e-wallets that have their own niche segments of users. Skrill has been around and offering electronic payments since 2001 and is one of the top e-wallets in the world today, besides being hugely popular in the online gambling industry. PayPal is a major player when it comes to electronic payments and its acquisition by eBay in 2006 only further strengthened its position as one of the leaders in the online payments arena.
The first and most basic difference that puts the two apart is the fact that PayPal is a relatively new entrant to the online casino industry. There was a major reason why PayPal stayed away from this industry for so long: it has always been fiercely protective of its users’ money and the security around it. Skrill has always been a very secure platform and openly facilitated payments at online casinos – both deposits and withdrawals. Therefore in terms of popularity among online casino fans Skrill easily outscores PayPal.
The second major difference is in the availability of VIP programs. Skrill offers a multi-tiered VIP program to its users. The VIP level has 5 tiers: Bronze, Silver, Gold, Platinum and Diamond. As a member of this VIP program you are able to use the Skrill MasterCard for free. Other benefits include lower fees and higher transaction limits. PayPal, on the other hand, does not have any established VIP program. Therefore this is another area where Skrill outscores PayPal, especially when it comes to being used at online casinos.
Skrill vs. PayPal: The Fee is the Differentiator
There are a number of key differences that differentiate Skrill and PayPal, apart from the VIP program. Skrill allows the use of one account per customer, though a person can have up to 4 individual accounts for different currencies. There are 41 currencies that Skrill supports. Skrill also offers bonuses, including a one-time sign-up bonus of $15 USD. While there are no account management fees there is a fee of up to 3.79% in the form of exchange fees (FX fee). Players can receive money for free, while there is a fee for sending money.
Compared to this, PayPal allows 2 accounts per person – a personal account and a business account. It supports payments in 25 currencies, and there is of course no sign-up bonus given the stature and popularity of this e-wallet. There is no account management fee, but PayPal does charge a 2.5% exchange fee, which is lesser than the 3.79% charged by Skrill. Also, while there is no fee for sending money with PayPal, there is a fee for receiving money – 2.9% and $0.30 for accounts within the US and 7.4% and $0.50 for accounts from US to Brazil.
The next key area where the two differ and where one can look at to determine which is better is deposit and withdrawal fees. When it comes to Skrill, deposits through bank transfer and instant bank deposits are free, while deposits through credit cards come with a fee of up to 1.9%. There are also fees for withdrawal: €5.50 for bank transfer and €3.50 for checks. There is also a 1.75% fee for prepaid ATM cards. There is also a fee of €1 a month for accounts that have remained unused for 12 months.
On the other hand, PayPal does not charge anything for withdrawals through bank transfer. Withdrawals through checks and prepaid ATM cards come with a fee of $1.50 and $1.95 respectively. PayPal does not charge any fees whatsoever for dormant accounts, i.e. accounts that have not been used for more than 12 months.
Skrill vs. PayPal: How Different are the Cashbacks and the Overall Security Features?
One more area where the two differ is in the cashbacks on offer. Skrill does offer a small cashback to players who use it to make deposits and withdrawals at their casino accounts: the cashback is about 0.3% and comes with an e-wallet optimizer. This is not something that PayPal offers. There is also a difference in the way the 2 e-wallets handle security. Skrill has a two-step authentication process for security verification, while PayPal has the proprietary PayPal Security Key.
Skrill vs. PayPal: In Conclusion…
As you can see from what we have put out above, the two e-wallets – Skrill and PayPal – have their own key features and benefits. PayPal is huge when it comes to online payments in general. However, its features are not among the best when it comes to online casino transactions. While it certainly is among the most popular e-wallets globally for all other businesses, the refusal to cater to this segment for decades earlier may just cost PayPal in the popularity debate.
On the other hand, Skrill has always had an open door policy towards the online casino industry. It has always facilitated payments into and out of online casinos for players from across the world. Deposits are very fast and so are withdrawals nowadays. With so many cool points going for it, Skrill would be the better suited and more popular for online casino transactions.