E-Wallets vs. traditional banking, which works best for online gamers?

There has been a gradual increase in the number of people and online gamers using some form of digital wallet. According to new reports from Boku and Juniper Research, e-wallets have overtaken credit cards as the number one international payment type. So, what has led to this adoption and which method is better for you as a gamer? Read on to find out.

What are e-wallets?

An electronic wallet (or digital wallet) is a software or an application that stores your payment credentials and passwords, making it easier to make transactions on a variety of websites. These wallets enable players to top up their accounts on a connected device without having to carry cards around. Digital wallets operate primarily on mobile phones but can also be accessed on a computer. Mobile wallets, a subset, are most used on smartphones. Popular e-wallets used by gaming platforms include:

PayPal

Paypal is one of the most popular payment platform options available to gamers today. It was introduced in 1998 as Confinity Inc. but later rebranded to X.com and finally Paypal. Paypal works by empowering the email of a registered user and making it all that is needed at the point of payment. Users can receive and send money with this email. Using Paypal to make payments is usually free but charges may occur with withdrawals. Paypal is very trustworthy due to its strict security measures that sometimes affect even normal transactions. It also has a wide reach, and you’d rarely find a gaming platform that doesn’t accept Paypal as payment.

Skrill

Skrill is accepted by thousands of gambling websites around the world and comes with a prepaid card and multi-currency account for greater ease of use. However, for all its good features, Skrill charges a transaction and withdrawal fee through the e-wallet. Also, there are a couple of gambling websites and countries where you cannot use Skrill.

Apple Pay

Although this payment option is only available to Apple users, the user count for this e-wallet is almost 56 million according to data published by Apple in 2023. It’s super-secure because it uses biometric authentication and can be used for both in-store and online payments as needed.

Apple Pay is now used in more than 20 countries and is especially popular in countries like the USA and Canada, with many gaming platforms and casinos known to offer this payment method for its prized convenience. Another perk is the lack of fees. Not only does Apply Pay not charge anything for your transactions, but you’ll seldom find any third-party fees too. Apple Pay casinos in Canada do not apply any charge for using this payment method and some offer deposits for as low as C$5.

Other popular options offered by gaming platforms include Neteller, ecoPayz, and Zelle.

Pros

• Protection of financial and personal data. A digital wallet protects your credit cards and identification information.

• Eliminates the need to carry your card everywhere you go. You only need a mobile or other connected device at the point of payment.

Cons

• May not be accepted everywhere.

• If your smartphone is stolen without password or biometric protection, or your digital wallet is hacked, you may have your information stolen and used criminally.

Traditional banking

The traditional methods such as Credit and Debit card payments are still common and practical ways to deposit and withdraw money from online games. They are usually the standard method for making payments and players will almost certainly find one of these in their favorite casinos.

Debit and Credit Cards

These are well known and reliable payment channels that provide instant depositing options. These cards have the advantage of being familiar and simple for players to use. However, some gambling jurisdictions, most recently the UK, prohibit the use of credit cards at remote gambling websites.

Bank Transfer

Bank transfers are one of the safest and most reliable forms of payment. Gamers really appreciate the security that comes with sending funds directly from their bank account, especially for large transactions. Players often prefer to withdraw large amounts of winnings directly to their savings accounts.

Cash

This is a payment method that isn't often used. It allows players to pay into their accounts in cash at designated retail locations, such as convenience stores. It offers players who don’t have bank accounts, or those who want to avoid using electronic payment systems, a choice. This is usually only possible for popular gaming platforms.

Pros

• They are widely accepted.

• They provide strong consumer protection and fraud detection.

• They facilitate quick and easy payments for players.

Cons

• Payments may take a little longer to process.

• Banks and processors may charge transaction fees.

• Some methods, especially credit and debit cards, require players to provide sensitive financial information every time they make payments.

Which works best for online gamers?

Both options are excellent methods for any player looking to deposit or withdraw money from casinos. The right method depends on your preferences, and sometimes the method available on the platform. E-wallets were created primarily to eliminate the risk of exposing sensitive financial information on every online platform you need to make payments. However, bank accounts and cards remain the main method for players to pay and withdraw huge sums of money. Players should consider factors such as speed and convenience when choosing their preferred method. Unsurprisingly, the chosen payment method may differ from platform to platform, and some players even prefer to use new methods such as crypto payments as there is a growing presence of crypto casinos in the industry and players now have a lot of options to choose from.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes