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For years Skrill and Neteller have been the two largest payment systems in the online gambling industry https://eminetra.com.au/how-casino-technology-has-evolved-in-the-last-20-years/254948/. They've thrived on this industry and might not have gotten this far if they hadn't had thousands of casinos, sportsbooks, poker sites, and other sites to lean on.
Perhaps in recognition of this, the two payment services have since explored other options and are now looking to expand their services beyond the gaming space.
Skrill and Neteller
Skrill and Neteller started out as separate companies and have existed as such ever since. However, these days they are both owned by the same company: PaySafe Group. The company also owns Paysafecard and is one of the largest players in many online payment service sectors, with an aggregate transaction value and member base that rivals the likes of PayPal.
For years, players have been debating the differences between Skrill and Neteller, arguing which one is safer and which is better, not realizing that the two brands belong to the same companies. Usually, when a brand owns two similar companies, they bring them together and bring all those users together.
However, the polarization of the membership bases of companies like Skrill and Neteller means that such a merger probably won't work. When you have two companies with equally adoring fans, why bring them together to create a company that everyone just doesn't care about?
Can Skrill / Neteller compete?
The biggest competitor to Skrill and Neteller is PayPal. If these two web wallets are to compete with PayPal, they should be available on more sites and have the same functionality. But that will take a lot of work.
In many ways, Skrill is better prepared than PayPal. It's cheaper, has more fans in the online gambling industry, and works seamlessly on mobile devices. However, Skrill has an incredibly slow and archaic customer support service, with an average email response time of up to 2 weeks. PayPal, on the other hand, has a fully integrated support system that ensures that all members can get a helpful response within minutes.
PayPal also has features like working capital, PayPal credit, and better business and donation integration. It seems like a lot of sites are being asked to choose between PayPal and Skrill / Neteller, and since PayPal has a significantly larger market share and better integration, this is the most natural choice.
WooCommerce is a great indicator of the difference between these services. The main PayPal payment plugin has over 800,000 downloads, which means it exists on over 800,000 WordPress ecommerce sites. However, the official Skrill plugin has just over 1,000.
This is a huge difference and proves that Skrill and Neteller have a very long way to go to ever surpass PayPal. However, this does not mean that they cannot grow and earn their share of the production before that.
Where are these services used?
Skrill and Neteller have become popular with many over 30s who grew up with services like PayPal and became disillusioned with them. PayPal didn't have the best reputation in the beginning, and many people who used it to sell products, buy items on eBay, and process payments quickly became disillusioned with it and looked for alternatives.
Some of these disappointments were not due to PayPal. For example, it was often targeted by scammers and criminals, and whether they forged PayPal accounts to steal data or abused the chargeback system, players were angry with the service. In other cases, PayPal is to blame because its support system was slow, unhelpful and often frustrating in the beginning.
Many frustrated users switched to Skrill and Neteller and continue to use these services to this day. They have a growing fan base in the gig economy, where many employees are ideally suited to the target demographic as well as other service and product lines of business.
Most of the sites that Skrill and Neteller accept are service-based and many of them are from the IT, computing and gaming industries. For example, it can be used to pay for web hosting, online calls, CD keys, and even online dating. The general idea is that Skrill users tend to be more tech-savvy and lean more towards creative services.
Skrill has added several features to its program, allowing it to mimic many of the features offered by PayPal. For example, members can use Rapid Pay to transfer money instantly, and can fund their Skrill accounts with a variety of different payment methods, from credit and debit cards to prepaid cards and other web wallets.
However, they are struggling to compete with PayPal, and while they are likely to have enough market share to stay strong and keep going for years, it's hard to imagine how Skrill or Neteller would ever overtake the mighty PayPal..