Are E-Wallets or Open Banking Better for Gambling?

The choice of payment method for online gambling can make a big difference to the user experience. Among the many options available, e-wallets and open banking have become top contenders, each with its pros and cons. This article will break down both options to help you make an informed decision.

E-Wallets: The Digital Middleman

An e-wallet, or digital wallet as they are frequently called, is a middleman between your bank account and online gambling sites. You top up your e-wallet using debit cards or bank transfers, and the available funds can be directly used in online casinos.

The e-wallet stores your payment details safely and allows for quick transactions without having to share your bank details with the gambling site. This makes them safer than using your card details directly. It can also be a good measure to control your gambling since it’s a separate account from your bank account.

There are many options to choose from. You can find a list of ewallet casinos here and find one that suits you. Most online casinos will have several ewallets to choose from, some more popular than others.

Top E-Wallets in Gambling:

• PayPal: Perhaps the most famous and widespread ewallet, but less suitable for gambling. It’s only available in UK casinos.
• Skrill: Favored for its rapid transaction speeds and user-friendly interface.
• Neteller: High transfer limits and loyalty program. Good for high rollers.
• MuchBetter: Mobile-focused and low fees. Made with the intent of being used in iGaming.
• MiFinity: Offers low-cost international transfers and gambling transactions. However, it is a bit less widespread in online gambling sites.
• Payz (formerly ecoPayz): Offers multi-currency support and has a long-standing presence in iGaming.

Most ewallets have similar functions, but it’s always recommended to compare your options to find the best one for your needs. For example, some options are limited to specific regions, offer debit card options, and allow you to exchange currencies.

Pros:

• Speed: Deposits and withdrawals are instant.
• Security: Encryption, two-factor authentication and other security measures are taken.
• Privacy: Your bank statements don’t show gambling transactions, just transactions to the ewallet.
• Mobile access: Most ewallets are controlled via an app that gives you real-time notifications of all transactions.

Cons:

• Fees: Some ewallets charge for transactions or currency conversion.
• Promotion Exclusions: Some gambling sites exclude ewallet users from bonuses or promotions. More common with Skrill and Neteller than other ewallets.
• Verification: Initial setup may require ID verification, so you may face a slight delay the first time using it.

Open Banking: Direct and Transparent

Open banking allows third-party financial service providers to access your banking data, with your consent and verification, to initiate payments directly from your bank account. Compared to regular bank transfers, transactions are instantly processed, so you don’t need to wait the standard 3-5 working days.

This method eliminates intermediaries. Instead, it offers a streamlined transaction process without extra cost or a new set of logins required. It utilizes your online banking credentials and is just as secure as your bank.

Top Open Banking Providers for Gambling:

• Trustly: Facilitates instant bank transfers without the need for cards or apps. This is the most popular and common option for gambling.
• Volt: Specializes in real-time payments across global markets, with a strong presence in the European gambling sector. It’s a bit less common than Trustly but is gaining traction.

There are fewer globally available open banking solutions since many are restricted to one country. Interac is one such option available in Canada, enabling direct transfers from Canadian bank accounts to online casinos. Similar options exist in other countries.

Pros:

• Efficiency: Direct bank transfers reduce transaction times and potential errors. Transactions, both deposits and withdrawals, are instant.
• Cost-Effective: Often lower or no fees due to the elimination of intermediaries.
• Transparency: Real-time access to bank data can aid in responsible gambling practices.
• High security: While it initially may seem unsafe to use your banking credentials, it’s through a safe gateway. Your personal details are fully encrypted for the casino.

Cons:

• Bank Restrictions: Not all banks support gambling transactions.
• Limited Availability: Some options may be more regionally bound and are not available everywhere.
• No separate account: Unless you actively create a second bank account intended for gambling, your funds are not separate from your regular spending.

National Gambling Restrictions

One of the biggest challenges with open banking in gambling is the different national regulations. In some countries, banks can block gambling transactions even if the gambling is legal. Two such countries are Norway and Finland, where open banking is not an option.

Many banks also offer customers the option to block gambling transactions as a self-exclusion measure. This means even if a user has consented to an open banking transaction for gambling, the bank will still decline it. Some e-wallets have similar features implemented, but they are less common.

Comparative Analysis: E-Wallets vs. Open Banking

Which Option is Better?

The choice between e-wallets and open banking largely depends on individual preferences and circumstances.

• Opt for E-Wallets if: You prioritize privacy, wish to avoid potential bank restrictions, and value widespread acceptance across gambling platforms.
• Choose Open Banking if: You seek direct transactions with potentially lower fees and are confident that your bank supports such operations for gambling activities.

As the online gambling industry evolves, both payment methods will see improvements in security, speed and user experience. They are constantly evolving. Stay informed on the latest trends, and you’ll be able to make the best choices for yourself.