The Pros and Cons of Using E-Wallets for Online Casino Transactions

E-wallets are widely considered to be one of the fastest and easiest ways to transfer money online. They can be used for pretty much any kind of online vendor out there, offering enhanced security and quality-of-life features to anyone willing to take a few extra steps to protect their payments.

In the online casino industry, e-wallets are also extremely common among leading casino sites. Most players these days would consider e-wallet payment options to be a “must-have” for any new casino. They’re simply so widely used that a modern gaming platform wouldn’t get very far without allowing players to deposit and withdraw using e-wallets.

So why are e-wallets in online casinos so popular, and how did they establish themselves as the go-to online payment method?

The best way to answer that question would be to consider the advantages and disadvantages of paying for casinos with e-wallets. This will give us a nice overview of the main reasons to choose this style of payment service for your future casino needs.

Before we begin, we remember that you can find out all about using e-wallets in casinos here. That page also contains a rundown of the best e-wallets to use for casinos as well as suggestions for casino sites that accept them.

Advantages & Disadvantages

It’s important to understand that not every e-wallet is the same. They generally operate on similar principles, and we can easily distinguish them from other types of online payment methods. However, one wallet may not have the same features and characteristics as every other competitor. They are different in many ways, the least of which can be QoL features or geographic coverage.

Still, we can still identify common pros and cons of using e-wallets for online casinos. We’ll start by listing them below, then explain each of our points further down.

e-Wallet Pros

1. Increased security
2. Convenience
3. Transaction speeds
4. User-friendliness
5. Low fees

e-Wallet Cons

1. Added extra steps
2. Regional availability
3. Casino availability
4. KYC Verification
5. Casino bonus limits

Pros

We’ll start by going through the positives. Remember that these are listed in no particular order – all five are advantages, and all five contribute to the success of e-wallets as premier casino payment options.

1.      Increased Security

Increased safety is one of the primary reasons people are drawn to e-wallets. For starters, the companies behind popular e-wallets absolutely depend on being able to keep their users’ data and funds secure. All other aspects of this kind of service can be touch and go, but a fintech company with inadequate security is bound to sink like a rock.

Many also introduce multiple safety features that hammer this point home. From two-factor authentication and advanced encryption to internal safety auditing and active measures for preventing identity fraud – the list is long, but you get the picture.

Beyond that, the best way to explain why e-wallets are so safe would be to compare them to a standard debit card. Sure, the card may seem like the easy way to go – you probably already have one and you can use it on any casino. However, that’s the equivalent of walking around with your entire bank account in your pocket. If something were to happen to it you would lose a lot.

Conversely, an e-wallet creates a sort of mid-way point between your bank account and the vendors you’re using. Even in the unfortunate event of a security breach, only a part of your total savings would be at risk.

2.      Convenience

These days, e-wallets have established standards when it comes to what’s expected of them. You can pretty much expect air-tight security, instant payments, and minimal fees from an e-wallet. So how do competing products try to outdo each other?

The short answer? Features. As many as you can get to stand out from the competition.

Of course, these features can take many forms. Some are there to minimize the amount of work and tapping needed for each transaction. Others affect how these payments are processed from the user’s end, or may automate certain actions.

At the end of the day, though, the convenience of having one app to handle all of your online payments is not to be ignored. Remember, e-wallets can be used for many things aside from casinos, and the fact that you can oversee and control all of these payments in one handy app can be a huge blessing.

3.      Transaction Speeds

As we’ve established, e-wallets have plenty of perks when it comes to general online real-money transactions. However, there’s also one advantage that’s specific to online casinos and gaming. One fact that ensures millions of punters pick e-wallets as their go-to method of withdrawing from casinos.

Casino withdrawals using e-wallets are either instant or extremely quick. Many casinos do not allow for instant withdrawals in any scenario, but even in those cases, e-wallets are by far the quickest method of withdrawal. Even the slowest casinos process e-wallet withdrawal within 2 days at the most.

Bank card users usually have to wait a few days – and let’s not even get started on bank transfers. If you’re looking for instant casino withdrawals, e-wallets are your choice.

4.      User-friendliness

This point ties in closely with our previous note about convenience.

E-wallets were primarily designed and created as user-friendly, convenient methods of paying online. To that end, they aim to be as simple as possible.

Look at it this way. To make a card payment, you’ll have to provide the card number, date of expiry, and CVC code, and you’ll probably also have to go through authentication of some sort. Sure, you can save your card details for future use, but every new vendor or service will require you to provide these details again.

On the flip side, e-wallets allow you to complete casino deposits and withdrawals with just a few clicks. Accessing your wallet and funds is much easier without sacrificing security.

5.      Low Fees

Sending or receiving money from half the globe away will inevitably incur costs. Some methods are pricier than others, but all payment services will require a fee in one form or another.

This is especially true for casino withdrawals, which all have a small fee associated with them. The casino itself doesn’t typically charge a fee (good casinos don’t anyway), but you’ll have to pay the piper at some point.

In this regard, e-wallet casino payments are some of the most affordable options available in most casinos. Fees are typically less than 1% of the transaction, with special pricing for large payments. Again, this may vary depending on the serice provider, but the relatively low costs help e-wallets stand out from other methods.

Cons

Not everyone uses e-wallets in casinos, so there must be some downsides, right?

There are – though we would argue none can outweigh the advantages. Still, let’s look at some disadvantages of casino e-wallet payments.

1.      Added Extra Steps

No matter how you look at it, signing up for an e-wallet is an extra bit of work that not everyone is too thrilled about. That’s why bank cards are still the most popular casino payment option – because many players don’t feel the need for any e-wallet features.

In short, the biggest disadvantage of e-wallet services is that you simply might not be swayed by the advantages. If you’re feeling confident in your bank’s security, don’t need any of the quality-of-life features, and don’t pay for things online often enough to justify a wallet – do you really even need one?

For many, the answer is ‘no.’

2.      Regional Availability

Leading payment services are available in most countries around the world. Not all of them are, though, and not everyone has access to all e-wallets.

Every online payment system has a list of counties it operates in. This list is usually determined by legal and regulatory concerns, but it exists nonetheless. If you’re unlucky enough to live in an unsupported country, you’ll have to look elsewhere.

3.      Casino Availability

Most online casino sites these days accept payments from at least a few e-wallets. However, this points out another problem.

There are dozens of excellent e-wallets out there, and even more are appearing each year. Throw in smaller, country-specific services and wallets and it can all seem quite messy.

In the end, the casino you picked out for yourself might simply not accept the e-wallet you have to use. On a broader scale, every time you want to pay for something online, you’ll find yourself asking “Does this vendor accept X?”

It’s a small layer of inconvenience that not everyone will like.

4.      KYC Verification

Much like casinos themselves, e-wallets and the fintech companies behind them are subject to a lot of rules and regulations. They’re dealing with mass transfers of money, after all, and governments tend to be very serious about money.

To be able to confirm your identity and track cash flow, e-wallets typically require you to upload a scan or photo of some form of personal identification. It’s a bit of a hassle, and we know for a fact people aren’t too thrilled about it.

5.      Casino Bonus Limits

Reading the fine print is paramount when it comes to accepting bonus offers at casinos and gambling sites. We do it every time, and here’s one of the more common terms and conditions we encounter – payment method limitations.

For some reason or another, we often see e-wallets singled out as “not eligible for matched deposit bonuses.” It’s an unfortunately common sight, often targeting bit e-wallets like Neteller, PayPal, and so on.

Why does this happen? We can’t tell you – we don’t really know. But it does, and you should be aware.

Conclusion

There you have it – the best reasons to use ewallets for online betting, along with a few downsides you should be aware of before going in. We hope you found some valuable information that will help you pick your perfect payment method.