There were very few efficient alternatives to credit cards when the first online casinos were launched in the mid-1990s. Because not everyone has a credit card, this left a huge segment of potential customers without a means to fund their accounts and cash out their winnings online. It didn’t take too long before PayPal and other eWallets came along and drastically altered the landscape of online payments.
PayPal became a particularly popular payment method at betting sites by the end of the 1990s and into the new millennium. In fact, PayPal was the most commonly used online casino payment provider by 2003. However, PayPal stopped processing transactions with gambling sites that year. It wasn’t until 2010 that they resumed processing gambling transactions with licensed and regulated sites. During this hiatus, several other eWallet providers like Skrill and Neteller stepped in to fill the void. There are now countless web wallets as well as a new generation of mobile wallets like Apple Pay, Google Pay, and Venmo. If you look for the best online casinos that accept PayPal in 2021, you will likely find that most of those sites support a variety of other eWallets too.
Why PayPal and other Web Wallets are so Popular in 2021
While credit cards, debit cards, and electronic bank transfers are still widely used, eWallets are experiencing a boom as more and more people turn to them for fast, secure, and convenient transactions. So, why have PayPal and web wallets, in general, become so attractive for online casinos in 2021?
Many Gamblers Cannot Use Credit Cards at Online Casinos
Even though around 2.8 billion people worldwide possess credit cards, not all of them can use their cards at online casinos. In some countries where online gambling exists in a grey area, banks are forced to block online casino payments involving credit/debit cards or bank transfers. Many determined gamblers in those countries circumvent this problem by using an eWallet. Even though they cannot use their credit/debit card or bank account to directly fund their betting accounts, they can use those methods and many others to fund their eWallets. They can then use their eWallets to fund their online gambling.
Online betting in the United States has taken off in recent years as a growing number of states have legalized it. In addition to an array of eWallet providers, almost all of them support credit/debit cards and bank transfers. The problem? Several American financial institutions maintain policies that prohibit them from processing gambling transactions even if online gambling is legal. As such, many Americans have embraced eWallets over the past couple of years as a way around this issue.
One of the most recent illustrations of why eWallets have become more attractive for online casinos came on April 14, 2020, when the United Kingdom banned the use of credit cards at online gambling sites . That left close to 1 million people who used credit cards at online casinos scrambling for an alternative. Needless to say, a lot of those people have recently joined the growing ranks of eWallet users. It’s also worth mentioning that some UK-based betting sites have already scrubbed credit card payments altogether. That means their international clients who used credit cards must also find another way to go.
One of the most attractive things about eWallets is that they are highly secure. Providers integrate the most modern security features to ensure quick, safe, and seamless transactions. 128-bit encryption is one such feature. When you send data, it is turned into a random string of letters, numbers, and symbols that can only be deciphered by the recipient who possesses a unique key. Even if the ciphertext is somehow intercepted, it is unreadable and totally useless. It would be nearly impossible for even the most sophisticated hacker to crack the encryption algorithm. As a point of interest, using a Virtual Private Network adds yet another strong layer of security.
eWallets Withdrawals are Faster than Most Other Methods
Another reason for eWallets becoming so popular in 2021 is that they facilitate instant deposits and fast withdrawals. Sure, most payment methods allow you to make instant deposits, but withdrawal times are usually significantly shorter for eWallet withdrawals compared to other methods including credit/debit cards. Let’s be honest. People don’t like waiting to get paid what is rightfully theirs.
You will find that a lot of online casinos will process your eWallet withdrawals within 24 hours. Some will even do it in an hour or less. It typically takes anywhere from 2 to 5 business days to get your money when you withdraw using other methods like credit/debit cards or electronic bank transfers. That’s assuming you can use those methods in the first place. Most vouchers, prepaid cards, and even some credit cards can’t be used to withdraw.
People Prefer Using a More Discrete Payment Option
Using a credit card to pay at an online casino requires you to send sensitive information over the internet. EWallet transactions don’t. When you make a payment using an eWallet, the recipient usually only sees an account name and the amount sent. There are no credit card numbers, bank account numbers, or any other personal or financial data that could possibly be compromised. In an age in which privacy is an ongoing concern, this is yet another incentive for using an eWallet.
The Rise of Cryptocurrency
It is estimated that there are now over 4,000 cryptocurrencies circulating throughout cyberspace. The number of crypto owners has risen dramatically from approximately 30 million people in 2019 to 56 million in 2021. And guess where all those people store their cryptocurrency? That’s right, web wallets. Of course, an increasing number of gambling operators have adapted to this trend resulting in web wallets becoming even more popular at online casinos in 2021.
The Popularity of Web Wallets Continues to Grow
It’s not difficult to see why eWallets are outpacing other payment methods at online casinos in 2021. Still, at the rate technology evolves, it isn’t a stretch to believe that something else will eventually come along to phase out eWallets. Until then, expect online casinos to lean on web wallets as a key part of their operations. You can also expect many more online gambling enthusiasts to discover the advantages of using an eWallet. It’s a win-win situation for both parties.