E-wallets: Not the Best Solution for Casino Payments

The e-wallet phenomenon might seem like one of the newest entries in the history of the internet, but it made its debut back when the screaming of dial-up modems served as the soundtrack to our evening browsing. PayPal was founded in 1998, Neteller in 1999, and Skrill in 2001. With the exception of PayPal, though, it’s only recently that these names have entered the public consciousness.

The Big Three

We can probably thank the major phone manufacturers for popularising e-wallets in the second decade of the 21st century. Samsung, Google, and Apple all created their own version of a cashless payment system to get a piece of a market that could be worth US$7.5bn by 2027, up from US$1bn in 2019. So, while the buzz surrounding the Big Three’s e-wallets might have died down a little, the craze is still very much alive.

Source: Pexels

The online casino industry has recently begun flirting with Skrill and Neteller as an alternative to PayPal, which can be strict concerning the types of payments it will accept. Consequently, casinos that list PayPal among their deposit options aren’t as common as those that take plastic or bank transfers, for example. But is it worth bothering with an e-wallet if you have other options available?

Welcome Bonus

If you’re a casino gamer, the answer may well be ‘no’. Neteller and Skrill add large charges to casino payments, which means that they’re a less than ideal payment method for the operators themselves. Bonus Finder, a casino bonus UK comparison site, reports that customers can end up short-changed as well when using either of these e-wallets. 888casino, for example, won’t pay a welcome bonus on deposits made with Skrill or Neteller.

Of course, this may not be a critical concern for some gamers, as not everybody chooses to take a welcome bonus. Although, sites such as the above can help point players in the right direction. High wagering requirements and other conditions can greatly reduce their appeal, for instance. Neteller, PayPal, and Skill earned much of their popularity through accessibility. Unlike bank accounts, e-wallets do not have traditional borders, and PayPal works with 25 currencies in 200 countries. It's therefore an ideal solution for people in countries with restrictive banking options.

Knect Rewards Scheme

Fees can also be a problem for e-wallets. While sending and receiving payments from casinos is free for the customer, charges for withdrawing funds from Skrill can be up to 3.49% for money sent to Neteller accounts and 7.5% for Visa. Skrill also notes that card issuers may charge an advance fee on gambling-related purchases. This is specific to each bank though and has nothing to do with the e-wallet itself.

Source: Pexels

On the upside, Neteller started a rewards scheme in 2021 to encourage people to use their payment system. Known as Knect, the program lets customers earn points that they can then exchange for gift cards, cryptocurrency, and other rewards. Whether this includes casino payments is unknown at present but, given the previous restrictions on gambling purchases, it’s unlikely.

Overall, e-wallets continue to offer a valuable service to casino gamers - just be wary of the terms and conditions on welcome bonuses when signing up to a new site.