PayPal vs Skrill Comparison

A cashless society was a future presented to countries around the world, however as days pass by it seems to be the reality millions of us are already living. Most people today have a digital wallet and it’s a trend that’s witnessing a growth among all age groups. There’s plenty of apps where you can store, send, receive and pay cash. A majority of businesses have also embraced this idea of cashless transactions to keep things convenient for themselves and the consumer.

So if you’ve been trying to find an online payment system that will help optimize the finances and transactions of your business, chances are, you’ve come across the names “PayPal” and “Skrill” often enough. But which one would be more suited to your business? Keep reading PayPal vs Skrill to understand the exact details of these two online payments systems.

What Is Skrill?

Skrill offers easy and instant solutions for transferring funds online and is quite popular in the gaming community. This payment gateway is based in London and was started in 2001.

What is PayPal?

PayPal is a payment gateway that’s widely used by millions for online purchases. It’s a great e-wallet that safeguards all of your personal card and bank details from reaching the merchant. Your CVV and card number will be this platform’s best kept secret.

Skrill vs PayPal Ease Of Use

Skrill - You can open an account on this platform for free and make transactions across 30 countries. However, note that you should be an active user of the account once in 12 months. If you make zero transactions for one full year, there’s a fee of 5 euros/month charged against your account.

PayPal - You can open your account on PayPal for free and transfer funds within your own country as well as internationally. PayPal is ideal for merchants as customers trust PayPal for seamless shopping transactions.

Skrill vs PayPal Cost Of Service

Skrill - For a domestic transfer of funds there’s a 2% fee applied per transaction however for any international transaction made it is free of cost. Yes, you can send money to an international bank account for free on Skrill. But do keep in mind that when you have to receive money from a country that has a different currency, Skrill adds a 3.99% fee to the exchange rate.

To send money overseas you don’t need to have the recipient’s bank details but you simply transfer the money to them via email address. The person who receives the money can then withdraw it for their own expenses.

PayPal - For domestic payments made via debit or credit card you’re charged a 2.9% fee (based on the amount you send) and another fixed fee. While for international transactions, PayPal takes 2.5% commission and also charges the customer an additional fixed exchange rate fee. It’s quite clear that PayPal is not extremely precise about all the hidden charges added for a transaction and so it can be difficult to wrap your head around their fee structure. This is one of the drawbacks and a common complaint shared by multiple users of this platform.

See also: Calculate PayPal Fees Online

Skrill vs PayPal Unique Features

Skrill - Skrill can be used to transform upto 41 currencies into Bitcoin and Bitcoin cash. You can then sell it when you feel it’s the right time. This platform basically allows you to set up a crypto wallet so you can store, buy or sell crypto. This is beneficial if you’re very much invested in gambling certain funds into online casinos or poker competitions.

PayPal - As PayPal caters itself to merchants, a feature enjoyed both by customers and ecommerce business owners is the ‘PayPal Express Checkout’ option. By clicking on the ‘PayPal checkout’ button at the end of an online shopping journey, you would be redirected to the payment gateway directly. You don’t have to go through the trouble of putting in your shipping details anymore with this feature.

PayPal vs Skrill - Online Casino Benefits

Now, e-wallets are much more popular when it comes to making transactions for a game of online poker. Like we discussed earlier, Skrill as a platform does have an upperhand over PayPal in this scenario because poker sites themselves are more convenient with Skrill as a mode of deposit. It’s also more likely that Skrill shows up as the preferred option when it comes to gaming and investing your money in an online casino.

In comparison to Skrill, it seems that PayPal doesn’t have the best policies in place for investing your funds into poker games. This is because on Skrill, you can create 4 currency accounts and transfer upto 41 currencies, while on PayPal you can only transfer upto 20 currencies.

Both platforms also have a distinct difference in the deposit fee. For instance, let’s say you’re considering depositing a certain sum via your credit card for a poker championship on a gaming website. Skrill would charge you a 1.90% fee for the deposit you make. While if you deposit the sum via PayPal, you could be charged anywhere from 2.90% to 7.40%. In addition to that, PayPal also adds another fixed fee depending on the sum you deposit.

Now, when it comes to withdrawing the sum once the same poker game is over, PayPal won’t deduct or charge a fee for withdrawing the sum you won at the game. However, Skrill would charge you 3.95 Euros just to take the amount you made by winning. In our opinion, the fact that the fee structure with Skrill is extremely transparent makes it a more reliable option for depositing as well as withdrawing your winnings. It’s true that there are plenty of things that are appealing about PayPal like we shared above, but it’s just the lines are too blurry when you try to find the definite fee being deducted.

Conclusion

We hope our blog helped you develop an opinion about PayPal and Skrill. Both payment gateways have been in the business of online transactions for almost the same amount of years and do a great job at keeping your banking details encrypted. Each platform has its own features and fee structures that work out to be beneficial for the type of transactions you wish to make. If you have an ecommerce business, Paypal would arguably be the better choice. However, if you’re a gamer and participate in poker competitions, then Skrill seems much more efficient.

See also: PayPal vs Google Pay