Are eWallets Safe for Online Gambling?

Digital and mobile wallet payments comprised 49% of global online transactions in 2021, with forecasts showing an increase to 53% by 2024. eWallets are today the dominant form of payment method for global transactions, with online gambling being one of their popular usages. But is it safe, and can all ewallets be used for gambling?

Common Safety Features of eWallets

Modern eWallets have evolved far beyond simple payment processors. They have robust security measures specifically designed to protect users in all types of situations, including high-risk environments, like online gambling. The majority of all ewallets today will have the following security measures available:

• Encryption and Data Protection: All eWallets worth your time employ advanced SSL encryption to protect financial data during transmission. This military-grade encryption ensures that sensitive information remains secure from potential interceptors.
• Two-Factor Authentication (2FA): Most eWallets now offer 2FA as a standard security feature. This means that a user must verify their identity through multiple channels (like email, SMS, app, and biometric verification) before accessing accounts or authorizing transactions.
• Fraud Monitoring Systems: Sophisticated algorithms continuously monitor transaction patterns to detect unusual activity. These systems can instantly flag suspicious transactions and temporarily freeze accounts to prevent further harm in case of unauthorized access.
• Segregated Account Storage: Most eWallets store user funds separately from operational funds. This ensures that customer money remains protected even if the company faces financial difficulties.
• Regulatory Compliance: eWallets operate under strict financial regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements, similar to online casinos. This provides additional layers of oversight and protection and limits fraud.

These are the standard security features available to most ewallets, but many go beyond this. Many options include features for responsible gambling and allow you to block transactions to gambling websites. While you can unblock this option, it typically has a few days' cooling-off period before it takes effect.

Can all eWallets be used for Gambling?

No. Some eWallets will not accept transactions to gambling websites, either due to regional restrictions or company policies. The availability can vary from one region to another, so some research, depending on your locality, is always required before making your choice. For example, PayPal can mainly be used for gambling transactions in the UK.

Three Popular Gambling eWallets

The good news is that most eWallets allow gambling transactions, with some even specializing in the niche. These are typically the best options as they are more widely available in online casinos and have low fees for these transactions.

You can use a website for eWallet casinos to find a list of suitable online casinos to choose from. These allow you to filter on popular eWallets that are widespread throughout the world. Below, we'll take you through three of the most popular eWallets for gambling right now.

MuchBetter

MuchBetter has positioned itself as a mobile-first ewallet solution with particular strength in the gambling sector. They started their venture as an eWallet for online gambling, and have continued in this path ever since. However, while gambling is still their main focus of business, their eWallet can be used for virtually anything, with options for wearables and a debit card linked to your account for use in physical outlets.

The platform emphasizes security through several key features:

• Security Infrastructure: MuchBetter utilizes advanced biometric authentication, including fingerprint and facial recognition technology. The platform also implements dynamic CVV codes that change regularly, and makes credit card fraud nearly impossible.
• Gambling-Specific Features: The wallet includes built-in spending controls and transaction limits specifically designed for gambling users. These features help users maintain control over their gambling expenditure in a responsible fashion. It's also possible to block gambling transactions.
• Mobile Optimization: As a mobile-first platform, MuchBetter has been designed with modern security protocols optimized for smartphone usage. This includes app-based notifications for all transactions and account activities, and direct control of everything in the app.

Payz (formerly ecoPayz)

Launched in 2000 as EcoCard, then rebranding to EcoPayz, and now just Payz, is an online payment solution with extensive experience in the online gambling industry. The platform has evolved significantly over more than two decades of operation, and today, they are best known as a mobile app with full control of your spending.

• Regulatory Standing: Payz operates under Financial Conduct Authority (FCA) regulation in the UK, providing users with regulatory protection and oversight. This authorization ensures Compliance with strict European financial regulations.
• Security Measures: The platform employs multi-layered security protocols, including advanced encryption, secure login procedures, and comprehensive transaction monitoring. Users can also set their own transaction limits and security preferences.
• Multi-Currency Support: Payz provides secure transactions, multi-currency support, and fast transfers. This makes it particularly suitable for gamblers who need to manage different currencies efficiently.

Skrill

Skrill remains one of the most established names in online payment processing. It has held a particular strength in the gambling sector due to its comprehensive feature set and global reach. Nearly all online casinos accept Skrill for both deposits and withdrawals, so it is a convenient option.

• Advanced Security Features: Skrill has added security features, like two-factor authentication and fraud monitoring, to protect its users' funds. The platform's security infrastructure has been refined over years of operation in high-risk industries.
• Responsible Gambling Tools: The gambling block allows users to limit the way they spend funds with Skrill. Once activated, any transactions made through the Skrill wallet to gambling merchants will be blocked.
• Global Acceptance: Skrill has widespread acceptance among gambling operators all over the world, making it a versatile choice for most players.

Conclusion

eWallets have emerged as one of the safest payment methods, not only for online gambling, but for all types of transactions. Digital wallet transactions showing a compound annual growth rate (CAGR) of 15% between 2023 and 2027 in e-commerce alone, according to nimbleappgenie.com. Additionally, digital wallet adoption has significantly expanded from online use to in-store purchases, with in-store adoption increasing from 19% in 2019 to 28% in 2024, representing access to roughly $10 trillion of annual retail transactions.

eWallets offer superior security features compared to many traditional banking methods for online gambling. However, safety ultimately depends on choosing regulated providers, utilizing available security features, and maintaining responsible gambling practices. The combination of advanced encryption, regulatory oversight, and specialized gambling controls makes modern eWallets a safe option for online gambling transactions.