The value of the global online gambling and betting market peaked at $58.2 billion at the end of 2021, while the sector is expected to see exponential growth over the course of the next decade.
More specifically, the market’s value is forecast to reach a staggering $145.6 billion by 2030, with this translating into a potential CAGR of 12% over the next eight years.
There are many factors behind this rapid and sustained growth, with the diverse range of payment methods now accepted by operators in markets such as NZ among the most influential.
In this post, we’ll take a closer look at virtual e-wallets in particular, while asking how they compare to other payment methods used by New Zealand casinos. So, let’s get into it!
What are E-Wallets?
In simple terms, an e-wallet is a type of electronic card or virtual payment method, which can be used for completing online and mobile transactions.
In terms of basic functionality, it works the same as a credit or debit card that’s stored online, particularly as it must be linked to your bank account or some other source of funds (we’ll touch more on this later in the piece).
In this respect, an e-wallet can be described as a prepaid account, which is funded indirectly and can be used to process instant transactions. When using popular examples such as Skrill, PayPal and Neteller, your account is protected with a password, while it can be used to make purchases with any supplier that accepts the payment method.
From a technical perspective, an e-wallet has two components; namely software and information.
The former element stores personal data and secures it using encrypted technology, while the latter is a database of details that you provide directly when you sign up for an account. This will include your name, shipping address and primary funding source among other datasets.
Like contemporary blockchain wallets, e-wallets have helped to drive higher levels of financial inclusion across the globe, as opening an account is much easier than applying with a bank or building society.
Do All Online Casinos in NZ Accept E-Wallets?
E-wallets are now widely accepted by iGaming operating operators in most jurisdictions, and the New Zealand market is no exception to this rule.
The most widely used e-wallet platform is PayPal, while Skrill and Neteller also offer flexibility and convenience to online gamblers.
However, not all online casinos accept PayPal as a viable payment method, although a growing number are beginning to embrace this e-wallet. You should also note that some welcome offers deployed by online casino operators prohibit you from depositing with either Skrill or Neteller, so this is something that you should keep your eye on as a player.
But what about the fees charged by these e-wallet? Well, a basic Neteller account charges a basic 3.99% foreign exchange charge when dealing in multiple currencies, while a further 2.5% will be charged by the operator to replenish your account from a credit card.
As for Skrill, it’s completely free to deposit money into your account, although a $5 monthly charge is applied after 12 months of inactivity (this shouldn’t be an issue if you regularly wager online).
When using PayPal, it’s free to receive payments and iGaming withdrawals so long as no currency conversion is involved. If you own and operate a PayPal balance account, there are additional fees to add funds.
In terms of speed, each of these e-wallets offer instant deposits, which is one of the key benefits when using them to gamble. Payout times can vary depending on the internal processing times deployed by operators, but e-wallet withdrawals are typically completed within 24 hours.
How Do E-Wallets Compare to Other Payment Methods?
E-wallets are generally considered to be among the best iGaming payment methods in NZ, especially from the perspective of convenience and the speed of associated withdrawals.
Make no mistake; some of the best NZ Skrill casinos process almost instant withdrawals, whereas standard debit card transactions of this type can take between three and five working days on average.
Another benefit of e-wallets is that you can link an account to multiple payment sources. For example, PayPal lets you connect your account to multiple debit and credit cards, while you can also link directly to your bank account.
While this is less effective in the UK, where credit cards are banned by the UK Gambling Commission (UKGC) and cannot be used to complete deposits either directly or through an e-wallet, it’s a huge advantage in markets such as New Zealand (where credit cards are legally accepted by most iGaming operators).
You also only need to add your debit or credit card details once to an e-wallet platform, while this data will be secured by 128-bit SSL encryption as a minimum standard.
This means that there’s considerably less chance of these details being compromised or hacked, creating greater security and considerable peace of mind for online gamblers.
Also Read: Tax Implications on Gambling Winnings