PayPal is arguably the best-known brand in the growing digital payments market, establishing itself as a reliable and secure way to send and receive money for business and personal use.
While PayPal’s influence is widely felt, it has been particularly impactful in the world of online casinos. Here’s a look at the role it played in helping online gambling services thrive.
The importance of trust
Today all the best PayPal casino sites found here can be used to support all kinds of payment methods and platforms, giving customers a lot of flexibility and choice when they want to deposit or withdraw money.
Of course, that wasn’t always the case, and in the days when online casinos were a new concept with a less established infrastructure to support them, the main issue hampering growth was trust.
Simply put, consumers were reluctant to put money into their accounts held at casino sites, as using a traditional credit or debit card was viewed as questionable security at best.
Often the sites depended on little-known card processing services, which meant that while the casino’s brand was well-known, it was understandable that potential customers were reluctant.
The arrival of PayPal as a means of payment has completely removed this distrust. Already dominant thanks to its previous ownership by eBay, the vast majority of internet users were at least familiar with the PayPal brand, even if they had not used it themselves.
Trust in PayPal was therefore transferable to casino operators who adopted it as a means of payment. Anyone who had hesitated to gamble online precisely because they didn’t want to use obscure third-party platforms for financial transactions no longer had any reason to be afraid, and soaring incomes casino sites are proof of this.
The relevance of security
PayPal did not win the trust of consumers by accident; it was considered to be more secure, in particular because of its difference with the old methods of payment.
Much of the reluctance surrounding deposits with charge cards was that consumers did not feel comfortable passing sensitive financial information to the platform providers or the casino sites themselves. Security breaches are sadly rife in all kinds of industries, and news like online gambling seemed particularly vulnerable.
Conversely, by being able to use PayPal, deposits could be made without giving another company access to payment card numbers. So, there was an extra layer of protection offered to consumers, and it was embraced wholeheartedly by many as online casinos gained traction around the world.
Speaking of the global scale of the online casino ecosystem, it’s worth talking about how PayPal’s involvement has allowed operators to spread their wings in many parts of the world.
The legality of online gambling is a gray area in many places, with states choosing to either tolerate citizens gambling at overseas owned and operated casino sites or to turn a blind eye.
For this reason, PayPal was well suited for people living in many countries who had yet to catch up with the trend of legalizing online casinos. This meant that transactions could be done transparently and securely, without having to face the trap that other types of cross-border transactions entailed at the time.
Once again, the easing of restrictions and improvements made by many payment platforms have leveled the playing field somewhat in recent years, but it is impossible to underestimate how successful PayPal has been in turning opinion around. in favor of casino operators.
Stimulation of competition
Finally, the revolution in the online casino industry that PayPal has helped drive forward has also been associated with increased competition between different operators, as well as the rise of competing payment platforms.
As more and more brands have entered the fray, this has offered better value to consumers, while also fueling the aforementioned choice.
Today, the best casino sites have to offer huge incentives to customers to keep them away from their competition. They also need to ensure that there is a plethora of payment options, with the emergence of alternatives to PayPal such as Skrill.
All of this contributes to the healthy outlook for online casinos and the vibrant and diverse customer base that this market enjoys. While PayPal is not entirely responsible, it is certainly an important cog in the digital gaming churn machine.