iGaming is a new term used to refer to one of the rising forms of online gambling – internet gaming. The word covers every form of online gambling, from sports betting to online casinos.
As the world of iGaming continues to increase in popularity, advancements and changes in technology have led to changes in payment methods used to facilitate successful betting. In the wake of these numerous new payment methods, two have taken the lead and come under more scrutiny as to which better serves as a payment method – cryptos or eWallets.
What is crypto?
Cryptos refer to digital currencies. An example is Bitcoin, which has become one of the more prominent payment methods for online transactions. Its decentralized, encrypted system makes for transparency, speed, and ease of transacting due to eliminating the need to carry physical cash.
Since their creation, they have been a favoured form of transacting globally, gaining recognition and relevance across many governments.
What are eWallets?
eWallets, on the other hand, are electronic platforms used for online transactions. They function like credit or debit cards, and are mainly used for online payments through their wallet features. Common examples include Neteller, Skrill, Paypal, and Venmo.
They are also called digital wallets and exist only electronically, much like cryptocurrencies. They play the role of financial go-betweens between players and casino accounts, allowing payments to be made easily and quickly.
How do eWallets and cryptos compare as payment methods?
The iGaming world has a lot of demands placed on platforms that serve as payment outlets. These demands border on availability, fees, and even processing times. With players preferring casinos with instant payouts, it becomes pertinent to see which option best plugs these holes.
The question of availability seeks to answer how easy it is to access funds deposited or paid through these payment gateways.
Cryptocurrencies are available to anyone with a smartphone and an internet connection. With access to both, setting up a crypto wallet is seamless, with none of the requirements of a traditional financial institution like ID verification or background credit check.
Just like cryptocurrencies, eWallets promise availability and easy access to funds. Through the quick delivery of funds and winnings upon request, players can easily improve their sense of satisfaction and reward from the winnings on their games. The major difference is that most (if not all) eWallets would require the user to provide some information in line with the demands of the government bodies regulating them. Currently, more than 425 million people worldwide use crypto, while there are more than 3.4 billion eWallets used worldwide.
The major reasons players consider iGaming is to make money, certainly not lose it, and in this regard, eWallets is the foremost champion.
Most eWallets do not charge a fee on transactions conducted using their services. This singular position gives them a favoured place in players’ minds, knowing they stand to lose next to nothing to fees – a sharp contrast to traditional financial institutions and wire transfers, which usually request a chunk of money in fees for transactions of the same amount.
In addition, eWallets provide incentives by offering rewards to long-standing users of their platform, cementing their position as the favoured platform for players.
Although cryptocurrencies were preferred due to reduced transaction fees, that unique selling point has been lost due to some eWallets’ no-fee policies (terms and conditions apply).
Also, although cryptocurrencies charge low fees for transfers, demands on the blockchain can increase the cost of transfers. For example, Ethereum’s low during 2023 was around $1.15 per transaction.
Another criterion for where these new platforms outperform traditional financial institutions is processing times or the speed with which transactions are completed.
The average bank takes three to five days to pay after it is requested. This less-than-optimal time makes it difficult for players to enjoy the game and the gaming experience in real time.
To remedy this, eWallets have reduced the time lag between request and access to funds by cutting the time down from 3-5 days to within minutes with eWallets. By taking advantage of the speed issue, eWallets have become one of the preferred and most popular platforms for iGaming transactions.
With a processing time that beats traditional financial institutions and wire transfers, eWallet has carved a niche for itself.
Similarly, cryptocurrencies have successfully overcome this difficulty. While it is faster than traditional payment methods, its reliance on the blockchain means transactions can take anywhere between minutes to a whole day. This uncertainty can be particularly off-putting to players wanting to get on with their gaming.
Although both options are quick, eWallets are more consistent with their offering and just edge out cryptocurrencies in this aspect.