How PayPal Became the eWallet of Choice for Casinos

eWallets have become essential money payment methods, and casinos have reacted to player demands for easier access to funding and withdrawals by including PayPal options.

PayPal slotted nicely into the gap in the market

PayPal is far and away the leading digital eWallet provider, operating at the top of what was once a new payment option since 2002. It was quickly acquired by eBay until it was sold off in 2015. Yet PayPal’s marriage to eBay wasn’t just convenience; it was necessary in order for the large number of transactions to take place safely between private individuals on the site.

What PayPal managed back then was to identify the huge gap in the online payment market that wasn’t covered by credit cards. It’s popularity as the default choice of payment on eBay meant it saw off direct competition from Yahoo’s PayDirect, Citibank’s c2it, BidPay, Google Checkout and eBay’s other service Billpoint.

For online sports bettors and casino players, using PayPal to fund their accounts makes sense in a number of ways. It holds advantages over credit and debit cards that aren’t always initially apparent, that is until they try to open more than one casino account.

PayPal’s system of funding and withdrawal suits online casinos

For online sports bettors and casino players, using PayPal to fund their accounts makes sense in a number of ways. It holds advantages over credit and debit cards that aren’t always initially apparent, that is until they try to open more than one casino account.

• Withdrawals are made the same day whereas credit cards can take 2-5 days
• PayPal details can be entered in a couple of clicks, whereas multiple data is required to be entered each time for credit cards
• Funding options make it easier to manage bankrolls
• Offers a layer of financial security over personal data

Casinos that accept PayPal clearly hold an advantage over casinos that do not. It is the most convenient method of funding and withdrawing, but moreover, it is the quickest and requires the least amount of additional data input.

For amateur casino players operating a few accounts to get the best top-up offers, PayPal offers that ease of money transfer and a level of protection in terms of their personal financial data. For those full-time casino players, the speedier transactional funding and withdrawals make sense in managing bankrolls and switching between sites.

Security elements of PayPal

Like any other online company PayPal has experienced the effects of online fraud and continually develops its systems to counter the threat. In 2007, PayPal acquired an Israeli company called Fraud Sciences that helped it detect and analyse online risk and fraud.

Its early security features included a security key and two-factor authentication code and today it has encryption, email authentication, offers prepaid cards as well as the two-factor authentication alongside a 3D passcode.

PayPal’s split with eBay hasn’t affected them… yet

While eBay were forced to split with PayPal in 2015, it seems it hasn’t affected the online payment giant in the slightest. Its deal with eBay ends in 2020 when it will cease to be the default payment option for them. The foundations that this partnership has given to PayPal has meant it has found no problem accessing additional markets to operate in.

Its infiltration of the online casino and gambling sector has seen it become, more often than not, a de facto choice for bettors to fund and withdraw. It is an industry that continues to grow, not least due to consumer gambling demand in Europe and softer online legislation for sports betting in the United States. It makes PayPal’s future look increasingly assured, despite online competition from eWallets like Skrill, WePay, Intuit, Google Wallet, Propay and 2Checkout.

PayPal became synonymous with eBay in the 2000s, but has since struck out on its own as a dependable all-round eWallet used in reference to make online transfers as much as Google is used as a reference for making online searches. Online payments are nearly always easier with eWallets like PayPal and as is often the case, when online casinos take notice of payment trends and shifts, it confirms wider public adoption.