When it comes to online transactions, choosing the right payment method can be a daunting task. The debate of Skrill vs PayPal has been a longstanding one. With each platform having its own set of advantages and disadvantages, understanding both platforms is necessary for seamless transactions.
In this article, I’ll share the key differences between Skrill vs PayPal, comparing their fees and features. I’ll also compare their services to help you make an informed decision.
Skrill vs PayPal: Table Comparison
Below is a table comparison of Skrill vs PayPal:
| Features/ Offers | Skrill | PayPal |
| Free Plan | Yes | Yes |
| 24/7 Customer Support | No | Yes |
| Multi-currency Support | Yes | Yes |
| International Acceptance | 202 countries | 200+ countries |
| Shipping | No | Yes |
| Buyer Protection | No | Yes |
| Integration | Yes | Yes |
| Mobile App | Yes | Yes |
| Cryptocurrency | Yes | Yes |
| ACH Payments | Yes | Yes |
| Invoice Generation | No | Yes |
| Multi-factor Authentication | No | Yes |
| Buy Now, Pay Later | No | Yes |
| Chargeback Protection | Yes | Yes |
| Virtual Card | Yes | Yes |
| Digital Wallet | Yes | Yes |
| Recurring Payment | Yes | Yes |
| Personal Transaction Fees(balance or bank account/cards) | 2.0% when sending with a credit card. 4.99% normal transfer | Sending from AD, HR, IS, & MC- no transaction fee. Sending with cards from other regions, 2.90%+fixed fee(depends on currency received) |
| Account fee | No service fee if logged in once every 6 months to make a transfer | If you’re inconsistent for 12 months, you’ll have to pay lesser of the amount in your balance or $20CAD |
| Conversion Rate | Foreign exchange fee of 4.49%. However, the exchange fee changes daily | 4.0% or any other amount that would be required when sk |
1. Free Plan
Skrill and PayPal both offer free plans. This allows you to create an account and start making transactions without incurring initial costs. This is perfect for individuals and small businesses looking to test the waters before committing to a paid plan.
2. 24/7 Customer Support
PayPal provides around-the-clock customer support. This is to ensure help is always available when you need it. On the other hand, Skrill support hours are limited. You may be left waiting for assistance during off-peak hours.
3. Multi-currency Support
Both Skrill and PayPal support multiple currencies, making international transactions easier and more convenient. This feature is a must-have for businesses that operate globally.
4. Shipping
PayPal offers shipping integration. This allows you to calculate and print shipping labels directly from your account. This feature isn’t available on Skrill. PayPal wins.
5. Buyer Protection
PayPal offers buyer protection, safeguarding your purchases and giving you peace of mind when shopping online. Skrill only has a chargeback protection feature. PayPal wins.
6. Integration
Both platforms offer easy integration with e-commerce sites and online marketplaces, making it simple to connect your payment processing with your online store.
7. Cryptocurrency
Skrill and PayPal support cryptocurrency transactions. This makes these platforms an attractive option for businesses that want to accept cryptocurrency payments.
8. Invoice Generation
PayPal allows users to generate invoices, making it easy to bill clients and track payments. Users have access to tools for creating and customizing invoice templates. They can also set up recurring billing subscription options. Skrill doesn’t offer this feature, which may cause extra work for businesses. PayPal wins.
9. Multi-factor Authentication
PayPal offers multi-factor authentication for added security, protecting your account from unauthorized access. Skrill doesn’t offer this feature, which may leave your account vulnerable. PayPal wins.
10. Buy Now, Pay Later
PayPal offers a “buy now, pay later” option, allowing users to delay payments and giving businesses more flexibility in their payment terms. Skrill doesn’t offer this feature, which may limit your payment options.
Brief Overview of Skrill vs PayPal
Skrill and PayPal are both payment gateways that make it easy for individuals and businesses to send and receive payments.
What is Skrill?
Skrill, formerly known as Moneybookers is a payment service that helps individuals handle payment efficiently. The platform offers virtual cards, digital wallets, and foreign bank accounts to users. It also offers a business account to SMEs looking to send and receive payment internationally.
Skrill’s bank account is a top pick among the gaming and trading communities, and for good reason. Its unique features make it an ideal choice for those who need to work with online gambling and forex accounts. With Skrill, users can deposit and withdraw funds from online gambling platforms with ease. They can also make transactions with forex brokers.
What is PayPal?
PayPal is a payment solution for individuals and online businesses. It lets you pay for goods and services through a credit or debit card. Additionally, PayPal makes sending and receiving money easy. Since its founding, PayPal has remained a top choice for individuals who shop online and send money internationally.
For customer retention, PayPal provides certain discounts and offers to its users. With PayPal, users who are short on funds can still purchase goods and services. Payment can be down monthly or paid in 4. Pay in 4 is a zero-interest installment plan that allows you to divide your purchase into four convenient payments.
The first payment is due at the time of purchase, followed by three additional payments spaced 15 days apart. This flexible payment option enables you to split the cost of your purchase into manageable chunks with no interest charges or hidden fees.
Skrill vs. PayPal: Account Comparison
Skrill vs PayPal offer a personal and business account to its use. This makes these payment gateways a suitable choice for individuals and businesses. Below is a brief overview of each of these accounts.
Skrill Accounts
Skrill Personal Account
A Skrill personal account is a digital wallet that enables individuals to send and receive money online with ease. This account allows users to make online purchases, load funds from their bank account or credit/debit card. It also allows users to withdraw funds to their bank account or debit card.
The account can be accessed via a mobile app or web platform, making it convenient for users to manage their finances on the go. Skrill personal accounts are ideal for individuals who make online transactions, such as peer-to-peer payments, international money transfers, online gaming, and freelance work payments.
Skrill Business Account
These accounts aren’t for individuals. They are best for registered businesses looking to receive and send payments. To open a Skrill business account, you need to provide the relevant certificate of incorporation or similar document. You also need to provide proof of address and identification for each business owner and show that you own the company website.
Skrill offers three types of business accounts, including:
- Full Merchant Account: This account is ideal for online providers, e-commerce businesses, and companies with high-volume transactions. It allows users to send and receive payments to customers.
- Expense to Expense Account: This account allows users to only send payments via email address. With this account, users can’t receive payment.
- Wallet to Wallet Account: For users looking to you send and receive money from customers or partners. Payment is usually received or made via email address.
PayPal Accounts
PayPal Personal Account
A PayPal Personal Account is a great option for individuals who want to make online transactions for personal use. With this account type, users can easily receive money from friends and family and make online purchases. Users can also withdraw funds from their bank accounts and transfer money between accounts. However, it’s important to note that a personal account has limitations compared to a business account.
PayPal Business Account
This account type is perfect for businesses or freelancers requiring more robust payment solutions. PayPal business accounts offer advanced features such as creating professional invoices or receiving online payments from customers.
Skrill vs PayPal: Pros and Cons
Skrill Pros and Cons
Below are the pros and cons of a Skrill bank account:
Pros
- Offers physical credit cards to users
- Easy to use
- Rewards can be redeemed as cryptocurrency
Cons
- Poor customer support
- Verification takes a long time
- It isn’t available in some countries
PayPal Pros and Cons
Below are the pros and cons of PayPal
Pros
- Has strong invoicing features
- Offers loans to business clients using their services
- Refunds clients who haven’t received the item paid for
Cons
- Complex pricing structure
- Known for freezing and limiting accounts without explanations
Skrill vs PayPal: Which Payment Method is Better?
Choosing the best payment method between Skrill vs PayPal depends on your personal and business needs. To help with your decision, you can consider the following factors; fees, security, ease of use, and additional features.
While Skrill excels in lower fees, PayPal offers robust invoicing features and buyer protection. Generally, Skrill vs PayPal are both reliable payment methods, but they cater to different needs. Take the time to evaluate the pros and cons to be aware of what to expect.
Frequently Asked Questions
1. Why Is Skrill Better Than PayPal?
Compared to PayPal, Skrill is cheaper than PayPal. For instance, when you purchase an item online, PayPal requests a 4.50% service fee. While Skrill requests a 2.99% service fee.
2. How Long Does it Take Skrill To Deposit Money?
The money will appear in your account within 2-5 days.
3. What Do People Use Instead of PayPal and Skrill?
Other foreign bank account providers individuals use aside from PayPal and Skrill include:
- Wise foreign bank account
- Revolut foreign bank account
- Grey foreign bank account
- Intasend foreign bank account
- Cleva foreign bank account
- Payoneer foreign bank account
4. Will PayPal Cover Me if I Get Scammed?
If PayPal is able to confirm that you’ve been scammed or an error occurred in your transaction, you’ll be covered by their $0 Liability for Eligible Unauthorized Transactions program. This means you won’t be held accountable for any of the transactions made, and you’ll be offered a temporary credit.
