When e-commerce took off in the late 90s/early 2000s, most online transactions used money orders or bank transfers. The process was painfully slow, open to fraud and not to mention – insecure. eBay’s acquisition of PayPal in 2002 transformed the entire industry. Suddenly, online payments were seamless, secure – and incredibly convenient.
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PayPal is the easiest to use online payment method. PayPal is both a payment processing service and a digital wallet. The ability to instantly transfer funds makes it more useful than e-vouchers and prepaid cards. The dual functionality of PayPal is a major factor in its success, as it provides consumers with the best of both worlds. The vast majority of online retail and eCommerce business accept PayPal. The recent introduction of PayPal made mobile payments simpler than ever – especially for mobile gamblers, looking to make deposits and withdrawals on the go.
PayPal itself has had a strained relationship with the online gambling industry. Nonetheless, the payment processor heavily influenced and shaped the industry in the early 2000s. Online gambling depends on safe and secure payment methods. Digital wallets also provide a more anonymity than straightforward credit card transactions. For these reasons, all successful online casinos use digital wallets and payment processors of some sort.
With credit cards and bank transfers, players often have to wait days for their money to arrive in their accounts – both when making deposits into a casino account, and withdrawals to another payment method. In contrast, all PayPal payments are processed instantly. Another reason why PayPal is a popular payment choice at online casinos is its security. Only PayPal has access to your credit card and bank details, and PayPal has excellent security features. With regular payments, you have to rely on the casino to keep your information safe.
For decades, PayPal forbade online gambling sites in the US from using its service. But, after it split from eBay in 2015, PayPal returned to the gambling market. Now, there are many US and Canadian top online casinos, much to the delight of many online gamblers.
PayPal preferred to stay clear of the online gaming industry due to its reputation for being shady and fraud-infested. However, online casinos have completely reformed recently. They invested heavily in proper licensing and regulations, third-party auditing, and secure encryption. Now, PayPal is one the most preferred methods for online gamblers, and its popularity is set to grow even more in the coming years.
Is Bitcoin Next?
Bitcoin may be a bubble, or it may be the future: no-one seems to know. If Bitcoin is here to stay, it will surely have an effect on the online gaming industry. Bitcoin was born online, and the digital currency seems to be a perfect match for online casinos. Bitcoin offers security, privacy, convenience, whereas credit card transfers are unreliable and slow. The current uncertainty surrounding Bitcoin is a big turn-off for many e-commerce sites. But, if the volatility settles and Bitcoin becomes more mainstream, it will be the default payment for online casinos.