In recent times, Skrill has become recognized as one of the leading online platforms for money transfers and facilitating online payments.
It’s convenience and speed are just two of the main reasons that more users are signing up to e-wallet services such as Skrill to improve the efficiency of transferring funds from one account to another, making life easier, such as what happens with sites like oddschecker, who have been offering bonuses and information in gaming, giving a plus to this online world in which we get more involved every day.
The overriding focus of the Skrill platform is to become the go-to portal for low-cost overseas money transfers – the Western Union of the digital world, if you will.
Within this article, we’ll look into the benefits of e-wallets in general, the rise of Skrill and the industries it is best suited to in 2022 and beyond.
What is an e-wallet?
If you are new to the concept of e-wallets, let us first fill you in on what an e-wallet actually is. E-wallets, also known as digital wallets, are a software-based platform that enables account holders to safely store their payment information for multiple payment methods e.g. debit and credit cards, ensuring quicker and easier digital transactions.
E-wallets are increasingly compatible with mobile payment systems such as Apple Pay and Google Pay, enabling users to make immediate payments for goods and services using their smartphone devices. Digital wallets are also capable of housing data regarding business’ loyalty or VIP cards, as well as online coupons for discounts.
The real beauty of a digital wallet is that they don’t need individuals to have a bank account with a high-street bank or branch to get started. Thus, allowing those without conventional bank accounts to connect and transfer money faster and more securely.
The story of Skrill so far
From the outset, Skrill was known as Moneybookers and was incorporated in London back in 2001. Just six years later, Moneybookers was acquired by Investcorp for a cool €105m.
During this period, Moneybookers and other digital wallet services were experiencing something of a rapid rise and just two years later, Investcorp put the company up for sale for approximately £365m.
Just ten years after its inauguration, Moneybookers confirmed it had a customer base of over 25 million, as well as 120,000 accounts from online and offline merchants, accelerating B2B transactions as well as consumer payments. Integration with leading tech giants such as Facebook and eBay almost certainly helped.
Towards the end of 2011, Moneybookers confirmed its rebranding to Skrill, which was eventually finalized in 2013. As of August 2013, Skrill was purchased by CVC Capital Partners for a whopping €600m.
European prepaid payment service PaySafeCard was also acquired by the same firm, with Skrill now part of a parent company known as the Paysafe Group.
What Skrill is suitable for
Generally speaking, there are lots of great uses for a Skrill account. First and foremost, it makes it very simple to quickly transfer funds to family or friends at the touch of a button.
Some sole traders and freelancers also prefer to use their Skrill account to request and accept payments for their services. Users simply provide their email address associated with their Skrill account to be paid, in a similar vein to PayPal.
More recently, Skrill has become a go-to payment method for online casino players seeking fast deposits and withdrawals for their winnings.
Skrill has also been agile enough to spot an opportunity in the cryptocurrency sector too. As of June 2018, it has been possible for Skrill account holders to buy all kinds of crypto coins using fiat currency balances.
Better still, the new cryptocurrencies can be held in their Skrill wallet without the need for a native cryptocurrency wallet.
What Skrill is not so suitable for
If you are seeking a prepaid debit or travel card provider, Skrill is probably not for you, even though it does offer this as a service. The fees are somewhat prohibitive compared with other leading prepaid card providers.
You will be charged £4.65 to withdraw funds, regardless of withdrawal size and as much as 7.5% for withdrawing directly to another Visa card. If your transaction involves a conversion from one fiat currency into another, you will also incur another 3.99% exchange fee. When you add all of these costs up, you’ll soon realize there are cheaper alternatives out there.
Interestingly, there is a way to circumvent the 3.99% forex mark up. Instead of using the “Skrill to Skrill” option, you can use the “Skrill Money Transfer” portal which offers a 0% mark up on all currency conversions.
Can you trust Skrill with your funds?
If you like the sound of the Skrill platform, but you want even more assurances that the service is genuine and reputable, look no further. First and foremost, the Skrill platform is fully licensed and regulated by the Financial Conduct Authority (FCA).
This means that all UK-based users can be sure that their funds and sensitive data are given the highest possible levels of protection at all times.
It is also authorized for US-based users, with the US Department of Treasure’s Financial Crimes Enforcement Network (FinCEN) also fully licensing their services on the other side of the Atlantic.
For your own personal safety, Skrill accounts are also suitably protected with two-factor authentication (2FA). This provides an additional layer of security, requiring users to enter a random six-digit code which changes every 60 seconds, as well as their password.
Furthermore, all connections to Skrill accounts online are encrypted using 128-bit Secure Socket Layer (SSL) technology, ensuring all sensitive data and your finances are shielded from the prying eyes of cyber-criminals.
What’s the verdict?
Does the Skrill platform get the green light as a general service? It’s fair to say that when you delve deeper into the overall costs incurred with exchanging currency, the Skrill service is more geared towards efficiency than keeping a lid on fees.
Nevertheless, as a swift and secure digital wallet and online payment service, Skrill certainly compares favorably as a competitor to well-established portals such as PayPal.