Skrill vs. PayPal: A Comprehensive Comparison

With people migrating from one country to another and remote work being the norm, online payment systems are more popular than ever. Two of the most popular platforms for online payment are Skrill and PayPal. While both offer similar services, they cater to different needs and markets. This article comprehensively compares Skrill and PayPal, examining their features, fees, security, and overall usability.

Overview of Skrill and PayPal

Skrill

Founded in 2001, Skrill (formerly known as Moneybookers) is a digital wallet service that allows users to send and receive money online. Initially targeting the online gambling and gaming industries, Skrill has since expanded its offerings to include e-commerce, money transfers, and cryptocurrency trading. With a presence in over 200 countries, Skrill aims to provide fast, secure, and low-cost transactions.

PayPal

Established in 1998, PayPal is a pioneer in the online payment industry. Initially created as a secure payment platform for eBay, it has grown into a comprehensive digital wallet that allows users to send and receive money, shop online, and conduct business transactions. Millions of online retailers widely accept PayPal, which has a strong reputation for security and ease of use.

Features Comparison

User Interface and Experience

Skrill features a sleek, modern design that is simple, making it easy for users to navigate and manage their accounts. The intuitive mobile app allows users to send money quickly and check their balances.

PayPal offers a more comprehensive dashboard that displays all account activities, transaction histories, and additional services like PayPal Credit. While new users may take a bit longer to become familiar with the platform, its extensive features provide significant advantages for regular users.

Payment Options

Skrill allows users to fund their accounts through various methods, including bank transfers, credit and debit cards, and cash at participating outlets. It also supports multiple currencies, making it an ideal choice for international transactions.

PayPal also offers various funding options, including bank transfers, credit and debit cards, and the ability to link your PayPal account to your bank account for direct withdrawals. Moreover, PayPal supports numerous currencies, enhancing its usability for global transactions.

Transfer Speeds

Skrill is generally quicker for international money transfers, often processing them within minutes. However, withdrawals to a bank account may take a few business days, depending on the destination country.

Payments are typically instant, particularly for payments made within the PayPal ecosystem. However, transfers to a bank account may take 1-3 business days, similar to Skrill. Both platforms offer options for expedited withdrawals, but fees may apply.

Cryptocurrency Support

Skrill has embraced the growing cryptocurrency trend, allowing users to buy, sell, and hold cryptocurrencies directly within their wallets. This feature particularly appeals to users who wish to diversify their investment portfolios or engage in cryptocurrency trading.

PayPal also ventured into cryptocurrency. This enabled users to buy, sell, and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, this platform does not allow users to withdraw their cryptocurrency to external wallets, which may be a limitation for some users.

Fees Comparison

Transaction Fees

Skrill and PayPal charge fees for various services, but their structures differ significantly. Skrill charges a fee of 1.45% for international money transfers and a fixed fee based on the currency. For example, sending money in euros incurs a fee of approximately 0.07 CAD, while sending money in US dollars incurs a fee of about 0.04 CAD.

PayPal's fees can be higher, especially for international transactions. For cross-border payments, PayPal typically charges a fee of 4.4% plus a fixed fee based on the currency. This can make PayPal a more expensive option for users who frequently send money internationally.

Withdrawal Fees

Both platforms charge withdrawal fees when transferring funds to a bank account. Skrill generally charges a fee of 7.50 CAD for withdrawals, while PayPal's withdrawal fees vary by country and can range from free to a few dollars.

Currency Conversion Fees

Skrill and PayPal have currency conversion fees, which impact users who do international transactions. Skrill typically charges a conversion fee of 3.99% above the mid-market exchange rate. PayPal's conversion fees can be higher, reaching 4.5% above the mid-market rate.

Security Features

Skrill and PayPal prioritize user security and employ various measures to protect user data. Skrill utilizes advanced encryption technologies and two-factor authentication to secure accounts. Users are also protected from unauthorized transactions under Skrill's Zero Liability Policy.

PayPal is known for its robust security features, including fraud detection systems and buyer protection programs. Users can dispute transactions and request refunds if they encounter purchase issues, providing an additional layer of security.

Conclusion

In conclusion, Skrill and PayPal offer valuable online payment services that cater to different user needs. Skrill is a strong choice for users seeking lower fees and cryptocurrency options, particularly for international transactions. PayPal, with its extensive features and widespread acceptance, is an excellent option for users who prioritize security and convenience.

Choosing between Skrill and PayPal depends on individual preferences, transaction needs, and the specific features that matter most to users. However, for those looking for a comprehensive, cost-effective solution specifically designed for remittances, RemitBee stands out as the best option. RemitBee offers competitive rates, a user-friendly platform, and a focus on fast and secure money transfers. When you send over 500 CAD in one transaction, you don't need to worry about transfer fees, it's on the house! Sign up now.